International Minerals Corporation
Swiss : IMZ

International Minerals Corporation

May 19, 2006 11:18 ET

International Minerals Closes Cdn$92 Million Financing

SCOTTSDALE, ARIZONA--(CCNMatthews - May 19, 2006) -


International Minerals Corporation ("IMC") (TSX:IMZ)(SWISS:IMZ)(FWB:MIW) announced today that it has closed its previously announced (see news release dated May 10, 2006) public offering of units ("Units") and convertible unsecured subordinated debentures ("Debentures") (collectively the "Offering"). Gross proceeds to IMC from the Offering are Cdn$92.25 million.

The Offering comprised:

- 9.5 million Units at Cdn$5.50 per Unit for total proceeds of Cdn$52.25 million. Each Unit consists of one common share and one-half share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at an exercise price of Cdn$6.88 until May 19, 2008. In addition, the underwriters have an option (exercisable until June 19, 2006) to purchase up to an additional 10% of the Units offered pursuant to the Offering at the same Cdn$5.50 per Unit price. 9.5 million common shares (symbol "IMZ") and 4.75 million warrants (symbol "IMZ.WT") were listed for trading today on the Toronto Stock Exchange ("TSX").

- Cdn$40.0 million aggregate principal amount of Debentures of IMC bearing a 5.5% coupon rate for a six year period until May 19, 2012. The Debentures are convertible into common shares of IMC at the option of the holder at any time at a price of Cdn$6.88 (the "Conversion Price"). The Debentures are non-callable by IMC for the initial three-year period, followed by a conditional-call period for two years at the option of the Company if the weighted average price of the Company's shares exceeds the Conversion Price by 125% for 20 consecutive trading days. The Debentures were listed for trading today on the TSX under the symbol "IMZ.DB".

TD Securities Inc. and Dundee Securities Corporation acted as co-lead underwriters for the Offering and GMP Securities L.P. and Wellington West Capital Markets Inc. were syndicate members.

Net proceeds from the financing (approximately Cdn$87.8 million) will be used principally by IMC to fund construction and development to production of its Rio Blanco gold-silver project in Ecuador, to fund further exploration work at its Pallancata silver-gold project in Peru, and for general working capital purposes.

IMC is a Toronto, Zurich and Frankfurt listed gold-silver exploration and development company operating in Ecuador and Peru. Following the closing of the financing, the Company now has approximately 91.3 million shares issued and 101.0 million shares fully diluted.

None of the securities described herein have been or will be registered under the United States Securities Act of 1933, and such securities may not be offered or sold in the United States or to U.S. persons absent registration under such Act or compliance with an applicable exemption from such registration requirements.

Certain of the information contained in this news release constitutes "forward looking statements". Such forward looking statements include IMC's expectations related to the use of proceeds. Forward looking statements are not statements of historical fact and factors may cause the actual results, performance or achievements of IMC to be materially different from those set forth in such statements.


Stephen J. Kay, President and CEO

The Toronto, Swiss and Frankfurt Stock Exchanges neither approve nor disapprove the information contained in this News Release.

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