Imperial Metals Corporation (TSX:III) is pleased to announce that it has closed its previously announced non-brokered private placement of 7,000,000 common shares of the Company at a price of $2.40 per Share for gross proceeds of $16,800,000.

The proceeds from the Private Placement are intended to be used to fund the operation and development at the Company’s Red Chris mine and for general working capital purposes.

8. Murray Edwards purchased 3,500,000 Shares for an aggregate of $8.4 million and directors and officers of the Company purchased 753,000 Shares for an aggregate of $1.8 million. The participation of Mr. Edwards and the directors and officers of the Company (collectively, the “Interested Parties“) accounted for 60.8% of the proceeds from the Private Placement. Such participation is considered a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. Notwithstanding the foregoing, the directors of the Company have determined that the Interested Parties’ participation in the Private Placement will be exempt from minority approval, information circular and formal valuation requirements pursuant to the exemptions contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the gross securities to be issued under the Private Placement nor the consideration to be paid by the insiders will exceed 25% of the Company’s market capitalization. The Company did not file a material change report 21 days prior to the closing of the Private Placement as the details of the participation of Interested Parties had not been confirmed at that time.

A 2% cash finder’s fee is payable on a portion of the Private Placement to certain parties other than Interested Parties.

All securities issued in connection with the Private Placement are subject to a four-month hold period from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada. The Private Placement is subject to final acceptance of the Toronto Stock Exchange (the “TSX“).

The securities being offered under the Private Placement have not been, nor will they be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or under the applicable securities laws of any state in the United States (as defined in Regulation S under the U.S. Securities Act) and may not be offered or sold within the United States absent U.S. federal and state registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

About Imperial

Imperial is a Vancouver based exploration, mine development and operating company with holdings that include the Mount Polley mine (100%), the Huckleberry mine (100%), the Red Chris mine (30%). Imperial also holds a portfolio of 23 greenfield exploration properties in British Columbia.