WEEKLY ONLINE NEWS STORY
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| March 13, 2014 --- Vol. 08, No. 11 | March 2014
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British Columbia
FINANCE – Imperial Metals Corp. March 12 said it has closed its previously announced offering of US$325 million 7 percent senior notes. The notes are unsecured and will mature on March 15, 2019. Interest on the notes will accrue and be payable semi-annually on each March 15 and Sept. 15, commencing Sept. 15, 2014. Concurrently with the closing of the notes offering, Imperial entered into a five-year senior secured credit facility with a syndicate of lenders providing for a C$200 million revolving credit facility consisting of two tranches: a C$50 million revolving working capital tranche for general corporate purposes and a C$150 million revolving construction tranche to fund Red Chris project costs. The Red Chris copper/gold property is located in northwestern British Columbia. The company has used a portion of the net proceeds of the notes offering and borrowings under the senior credit facility to repay the outstanding amounts under its C$250 million unsecured line of credit with Edco Capital Corp. and its revolving demand loan agreement with a commercial lender. Imperial intends to use the balance of such proceeds and borrowings to fund capital expenditures related to the Red Chris project and for general corporate purposes. In addition, the company entered into a five-year C$75 million junior unsecured loan facility with Edco, which is owned by N. Murray Edwards, a significant shareholder of Imperial. Interest is payable at 10 percent per annum on amounts borrowed under the facility. The subordinated credit facility is available to fund project cost overruns associated with the Red Chris project, backstop the payment of certain third-party reimbursement obligations relating to an extension of the Northwest Transmission Line, and for general corporate purposes. In connection with this facility, Edco will receive a C$750,000 commitment fee and warrants to acquire 750,000 of the company’s shares at C$20 per share. The subordinated credit facility advances, the fees thereunder and the warrants granted in connection therewith constitute a related party transaction within the meaning of Multilateral Instrument 61-101. Management considers the subordinated credit facility to be advantageous as it provides additional timing and flexibility for financing the completion of the Red Chris project. Management also considers the terms and conditions of the subordinated credit facility and related warrants to be reasonable, in the context of the market. These arrangements were reviewed and approved by the independent members of the company’s board of directors. Edco purchased US$50 million principal amount of notes and directors and officers of the company purchased an additional US$3.35 million principal amount of notes. These purchases were made on the same terms and conditions as purchases of notes by other investors. These transactions also constitute related party transactions within the meaning of Multilateral Instrument 61-101.The subordinated credit facility transaction with Edco and the purchases of notes referred to above are exempt from the formal valuation and minority approval requirements of Multilateral Instrument 61-101 as they represent less than 25 percent of the company’s market capitalization.
MANAGEMENT – Pretium Resources Inc. Mar. 10 reported the appointment of James Currie as chief operating officer of Pretium where he will lead the development of the Brucejack project into a high-grade underground gold mine. Pretium Chief Development Officer Joseph Ovsenek, has been promoted to executive vice president. Currie led the construction and development of New Gold Inc.’s New Afton gold mine in British Columbia, which went into production ahead of schedule in 2012. During his tenure as executive vice president and COO of New Gold, Currie was responsible for three operating gold mines in the United States, Australia, and Mexico with cumulative operating budgets of over $300 million. Over the course of his 34-year career in the mining industry he has held roles in senior management, engineering and operations, on a number of projects that have progressed through feasibility to successful operation on schedule and budget. Currie holds a Bachelor of Applied Science degree with honors in mining engineering from Queen’s University and is a registered professional engineer. “We welcome Jim to Pretium’s senior management team as we begin to transition the Brucejack Project from an exploration success to a gold producer,” said Pretium President and CEO Robert Quartermain. “It’s a critical period for any project, and he brings proven experience to manage that process effectively and efficiently, particularly with respect to both the operating environment in northern B.C. and our mining plans.” Ovsenek, which joined Pretium in 2011, oversees a broad scope of the company’s strategic corporate functions including financing and project permitting. Prior to joining Pretium, he was senior vice president corporate development at Silver Standard Resources Inc. Ovsenek holds a bachelor’s degree in applied science degree from the University of British Columbia and a bachelor’s degree of laws degree from the University of Toronto; he is a registered professional engineer.
COPPER/GOLD – Colorado Resources Ltd. Mar. 12 said it has filed an independent technical report titled “NI 43-101 Technical Report on the North ROK Copper-Gold Project, Liard Mining Division, British Columbia, Canada.” The report, with an effective date of Jan. 27, was prepared by independent qualified person, Mark Rebagliati BSc., P.Eng. of Rebagliati Consultants Ltd., while the resource estimate was completed by Gary Giroux, P.Eng. of Giroux Consultants Ltd. Using a 0.20 percent copper equivalent cut-off, the inferred resource totals 142.3 million metric tons averaging 0.22 percent copper and 0.26 grams-per-metric-ton gold, which contain 690.30 million pounds of copper and 1.19 million ounces of gold. No metallurgical work has been undertaken to establish metal recoveries. For the purpose of developing a copper equivalent, 100 percent recovery of both metals is assumed. The reader is cautioned that 100 percent recovery is never achieved. In addition, the report notes that the North ROK property hosts is a significant new British Columbian alkalic copper-gold porphyry system which was advanced to an inferred resource category in nine months since its discovery; to date only 25 percent of the high-priority induced polarization chargeability highs have been tested by drilling; and a 15,000-meter diamond drill proposal is recommended. Colorado Resources President and CEO Adam Travis said, “The completion of this 43-101 Report is an important milestone in Colorado’s relatively short three-year history as we add an inferred resource of more than a million ounces of gold and nearly 700 million pounds of copper to our asset base. Colorado remains committed to further develop and expand North ROK’s mineral resources and continue to advance shareholder value through continued discoveries.” The report can be found at www.sedar.com and www.coloradoresources.com
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