FINANCE – Imperial Metals Corp. Sept. 3 said it closed a non-brokered private placement of C$115 million of 6 percent six-year senior unsecured convertible debentures, which is a C$15 million increase from the C$100 million convertible debenture face-value offering announced on Aug. 14. The convertible debentures provide additional financing to complete and commission the Red Chris mine, fund costs of remediating the effects of the tailings dam breach at the Mount Polley mine, and to fund ongoing operations. Edco Capital Corp. and The Fairholme Partnership, LP have each purchased C$40 million, or 34.8 percent, of the convertible debentures. Subject to adjustment, each C$12.00 note is convertible into one common share of Imperial upon at least 61 days advance notice. The bonds are not callable unless the closing price of Imperial’s common shares exceeds 125 percent of the conversion price for at least 30 consecutive days. Interest will be payable semi-annually, with the first payment due on June 30, 2015. At the option of the company, subject to the separate approval of the TSX and compliance with all applicable securities laws, such interest may be paid through the issuance of additional convertible debentures or Imperial’s common shares. Edco is owned by N. Murray Edwards, a significant shareholder of the company. Fairholme and parties related to it are also significant shareholders of the company. The issue of convertible debentures to Edco and Fairholme constitute “related party transactions” within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in a Special Transaction. The convertible debentures purchased by Edco and Fairholme are exempt from the formal valuation and minority approval requirements of MI 61-101 pursuant to section 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as they represent less than 25 percent of the company’s market capitalization. Edwards said, through Edco, he can now acquire up to an additional 3,333,333 common shares of Imperial in the event of conversion pursuant to the terms and conditions of its C$40.0 million convertible debenture. Assuming the conversion of the entire $40.0 million bond, as well as the exercise of all warrants currently held by Edwards and his affiliates, Edwards would then beneficially own about 31.1 million common shares, representing about 39.3 percent of the then issued common shares of the company. Edwards indicated that Edco’s acquisition of the convertible debenture was for investment purposes and that he may acquire additional common shares, debentures, warrants or other securities of Imperial from time to time, depending on market conditions.

GOLD/COPPER – Colorado Resources Ltd. Sept. 2 reported that 2014 exploration at the KSP property in northwestern British Columbia has recognized two regional deformation zones: the KSP Deformation Zone, which extends for more than 20 kilometers (12.4 miles); and the Big Rock Deformation Zone, which is more than six kilometers (3.7 miles) long. Along the KSP Deformation Zone at Khyber Pass the historic gold-in-soil anomaly has now been tripled in size. Within the Big Rock Deformation Zone 2014 sampling is highlighted by rock samples returning values up to 125.6 g/t gold and 79.4 parts per million gold-in-soils. Colorado President and CEO Adam Travis said, “Continued consolidation of the area along with our fieldwork is allowing us to put the pieces of the geological puzzle together and it’s looking very promising. Our first pass work at KSP has allowed us to get on the ground and not only confirm some of the encouraging historical results but to also significantly expand upon them. Sampling at Khyber Pass has outlined a first rate geological setting over a 3.4-square-kilometer area with significant gold in both rock and soils suggestive of a large bulk tonnage gold target in a similar geological setting to KSM located 45 kilometers to the ESE. Work along the newly recognized six-kilometer Big Rock Zone is also outlining some very high grade gold targets not only near Inel itself but as much as six kilometers away on trend.” In light of the results of this first pass work and newly gained appreciation of the controls to mineralization, Colorado has remobilized field crews to KSP and will conduct detailed work to follow up on these discoveries. This work will include detailed geological mapping, rock channel sampling, drill site selection and preparation along with diamond drilling if pending drill permit applications are approved in time and weather permits. Colorado’s 2014 work has included the consolidation of its land holdings in the area, the acquisition and compilation of the previously fragmented historical datasets and through its recent field program examined and expanded upon the known mineralized areas as well as make significant new discoveries. Colorado said this year’s field program – the collection of 684 rock samples and 1,247 soil samples, the completion of 600 line-kilometers of airborne magnetics and detailed geological mapping over a 40-square-kilometer (15.4 square miles) area – has allowed the company to advance the understanding and significantly expand the previously known mineralized areas and discover new zones along trend. Colorado said its technical team has recognized that the Khyber-Inel-Big Rock mineralized zones, along with their alteration signatures, the strength of the gold-copper mineralized intervals and their unique structural setting have many elements in common with the Kerr-Sulphurets-Mitchell camp located approximately 45 kilometers (28 miles) to the east.

SILVER/GOLD – Homestake Resource Corp. Sept. 2 said Agnico Eagle Mines Ltd. has provided notice of its intention to let lapse its earn-in option at the Homestake Ridge property in northwestern British Columbia, leaving Homestake with full ownership of its namesake project. Homestake said drilling completed during the 2014 summer program by Agnico extended the new Slide target to 800 meters of strike length, confirming a new zone of silver mineralization similar to that identified at the Homestake Silver Deposit and indicating the potential for a similarly rich gold zone down dip, which remains to be tested. Agnico has provided all assay results from its six-hole, 2,972-meter drill program. All holes were drilled at or near the Slide Target. Four drill holes were short step-outs from hole HR13-253, a 2013 hole that intersected 18.6 meters averaging 101 grams per metric ton silver. Two holes were much larger step-outs along strike to the northwest and southeast. Highlights include: Hole HR14-264 cut 4.5 meters grading 144 g/t silver and 0.20 g/t gold beginning at 324.5 meters down hole; and HR14-266 intersected 4.74 meters of 97.2 g/t silver beginning at a depth of 344.56 meters. HR14-266 is located about 400 meters to the southeast of hole HR13-253, significantly extending the strike length of this target to the southeast. Holes HR14-267 and HR14-265 contain strongly anomalous, near-surface silver mineralization that extends the strike length of the Slide target to a total of over 800 meters. Homestake President Joe Kizis said, “Agnico’s drilling has demonstrated that a silver resource is likely to be developed with further drilling at the Slide target. The newly extended portion with shallow mineralization lying between the existing Homestake Silver and South Reef deposits is particularly intriguing. Our mineral-zoning model, based on our three discoveries made to date on the property, suggests that rich gold mineralization should occur beneath the envelope of silver-biased mineralization seen at the Slide target, and we intend to utilize the model in the development of drill targets below the silver-rich mineralization.” In order to facilitate the continued exploration and development of the Homestake Ridge Property, Homestake has asked Agnico to provide Homestake with an opportunity to continue with the drilling program this exploration season to test high-priority targets without the task of establishing a new camp or mobilizing a drill. The Homestake property hosts indicated resources of 604,000 metric tons averaging 6.4 g/t (124,000 ounces) gold and 48.3 g/t (939,000 ounces) silver and inferred resources of 6.8 million metric tons averaging 4.2 g/t (911,000 oz) gold and 93.6 g/t (20.4 million oz) silver. Slide, located to the southeast of the property’s Homestake silver-gold deposit, was the first target of a 7,500-meter drill program slated for 2014.

POLYMETALLIC – Carmax Mining Corp. Sept. 2 reported the results for the recently completed Quantec Titan-24 DCIP survey at its Eaglehead copper-molybdenum-gold-silver project located about 48 kilometers (30 miles) east of Dease Lake, northwestern British Columbia. Carmax President Jevin Werbes commented, “The Quantec Titan 24 survey, combined with the analytical results of the historical and current drilling, has outlined a large, positive chargeability anomaly that, based on drill-hole information, appears to be mineralized over a 4,500-meters-long portion of this anomaly. Four of the six zones of mineralization located to date on the property occur within this 4,500-meters-long portion of the anomaly suggesting that these zones are parts of a much larger, contiguous zone of mineralization. The second chargeability anomaly located on Line 9 and Line10 is significantly different and has not been tested by drilling. Both anomalies are open along strike. The majority of the historical drill holes completed along the 4,500-meter strike length of the first chargeability anomaly where sampled are mineralized. A review of the available drill logs for these holes describe visible copper mineralization in those parts of the core that have not been sampled.” The first chargeability signature that has been outlined for the Eaglehead project (including the four zones of mineralization) has been tested with over 122 historical and current diamond drill holes. The majority of these holes, based on historical assays where sampled, are reported to contain significant copper mineralization. For example, the drill holes that occur either on or close to the Quantec lines were selectively sampled (from one to four samples per drill hole) over intervals ranging from 2.1m to 54.3m in length and copper grades ranging from 0.10 percent copper over 6.7 meters to 0.65 percent copper over 18.2 meters. A 3D geophysical model of the Eaglehead deposit can be viewed at http://www.carmaxmining.com/properties/maps/. In addition to the Quantec results, Carmax said the second hole of a six-hole drilling program has been completed.