VANCOUVER – Earlier this week, Imperial Metals Corp. of Vancouver launched a US$325-million senior notes offering as part of the financing for the completion of the Red Chris copper mine and mill 80 km south of Dease Lake, BC. The notes will be due in 2019 with the interest rate and other terms yet to be determined.
When the offering of notes closes, Imperial says it will enter into a new senior secured credit facility with a syndicate of banks for $200 million – C$150 million for Red Chris and C$50 million for general corporate purposes. When that facility is completed, the company intends to enter into a C$75 million junior unsecured loan intended to fund cost overruns at the project and repay obligations relating to the Northwest Transmission Line.
Imperial plans to begin commissioning the Red Chris project in June, with full production to be reached in Q4 2014. At the end of 2013, the company said it had sent C$438.8 million on the project. Total cost is now estimated to be C$540 million, an 8% overrun.
Visit ImperialMetals.com for more facts and to view the Red Chris photo gallery.
Late breaking: A broken tooth in the SAG mill bull gear has forced Imperial Metals to suspend milling at the Huckleberry copper-molybdenum mine 123 km southwest of Houston, BC. Depending on parts availability, repairs may take as long as four months. Imperial holds a 50% interest in and is the operator of the Huckleberry mine. A Japanese consortium owns the remaining interest.