bcMetals Corporation

bcMetals Corporation

October 24, 2006 09:00 ET

bcMetals Responds to Imperial Metals' News Release

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 24, 2006) - bcMetals Corporation ("bcMetals" or the "Company") (TSX VENTURE:C) is responding to the news release issued by Imperial Metals Corporation ("Imperial") on October 20, 2006.

The Company confirms that it has had a number of discussions with representatives of Imperial. However, to date, Imperial has declined offers to review material concerning bcMetals.

The Board of Directors of bcMetals remains committed to providing shareholders with a superior alternative to the unsolicited and non-negotiated takeover bid made by Imperial. With the assistance of its financial advisor, Genuity Capital Markets, management continues to consider and respond to expressions of interest from third parties regarding potential transactions, in addition to the transaction negotiated with Global International Jiangxi Copper Mining Company Limited ("GIJCM").

bcMetals adopted a limited purpose shareholder rights plan to ensure that shareholders have the opportunity to consider this proposed transaction. The shareholder rights plan was adopted only after Imperial refused a request to extend its takeover bid for sufficient time to allow shareholder to consider the transaction with GIJCM.

bcMetals has retained an independent financial advisor, Capital West Partners, which has provided its opinion that:

- the bid made by Imperial is inadequate from a financial point of view to shareholders and warrant holders of bcMetals, other than Imperial and its affiliates, and

- the proposed transaction with GIJCM is fair, from a financial point of view to the shareholders of bcMetals.

The Board of Directors of bcMetals has unanimously recommended that shareholders and warrantholders reject the Imperial offer and not tender their common shares and warrants to the offer. The Board of Directors also unanimously recommends that shareholders vote in favour of the proposed transaction with GIJCM, at a meeting of shareholders to be held on November 30, 2006.

Ian Smith, President and Chief Executive Officer

This release contains forward-looking statements, including statements relating to bcMetals' future plans and objectives with respect to the development of the Red Chris Property and the proposed transaction with Global International Jiangxi Copper Mining Company Limited. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in bcMetals' business, including risks inherent in resource exploration and development. There can be no assurance that the arrangements with Global International Jiangxi Copper Mining Company Limited referred to herein will be completed as planned or that the Red Chris Property will be placed into production. Actual results may vary materially from those described in forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • bcMetals Corporation
    Ian Smith
    President and CEO
    (604) 683-0140
    (604) 683-0126 (FAX)