Imperial Metals NR – Imperial Closes Bridge Loan Financing

Vancouver – July 31, 2017 | Imperial Metals Corporation (the “Company”) (III-TSX) reports that it has closed a $20 million bridge loan financing (“Bridge Loan”) with affiliates of its two major shareholders, Edco Capital Corporation, controlled by N. Murray Edwards and The Fairholme Partnership, LP, a private fund advised by Fairholme Capital Management, L.L.C., each of which has provided $10 million of the Bridge Loan.

The Bridge Loan is secured by all assets of the Company, and is subordinated to the Senior Credit Facility and Second Lien Credit Facility lenders. Interest on the Bridge Loan is payable monthly commencing on August 31, 2017 at the rate of 8% per annum. The Bridge Loan matures on the earlier of October 15, 2017 or the date the Company secures additional financing. The Bridge Loan proceeds will be used for general working capital purposes and to support ongoing operations.

The Bridge Loan is a “related party transaction” under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. The Company did not file a material change report 21 days prior to the closing of the Bridge Loan because details were not settled until shortly prior to closing and the Company wished to complete the Bridge Loan as soon as possible. For additional information, refer to the Company’s news release issued on July 6, 2017.

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