Imperial Metals Corporation
TSX : III

Imperial Metals Corporation

January 28, 2008 19:14 ET

Imperial Arranges $25 Million Working Capital Facility

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 28, 2008) - Imperial Metals Corporation (TSX:III) reports the Company has arranged for a $25 million revolving working capital facility, with Edco Capital Corporation, a company controlled by N. Murray Edwards, a significant shareholder of Imperial, and Balinhard Capital Corporation, a company controlled by Larry Moeller, a director of the Company. Edco Capital Corporation will provide $22.5 million of the facility and Balinhard Capital Corporation will provide $2.5 million of the facility.

The facility, which bears interest at 10% per annum, will be secured by a floating charge on all the assets of Imperial plus guarantees by Mount Polley Mining Corporation and Red Chris Development Company Ltd. The term of the facility ends on December 31, 2008. In consideration of the facility, the lenders will be granted one warrant for each $25 advanced under the facility such that warrants to purchase up to 1,000,000 common shares of Imperial at $10.00 per share, exercisable until July 31, 2009 could be granted. A maximum of 1,000,000 warrants would be issued to Edco Capital Corporation and Balinhard Capital Corporation if the facility were fully drawn. An arrangement fee of $168,750 is payable to Edco Capital Corporation and $18,750 is payable to Balinhard Capital Corporation. This transaction is subject to approval by regulatory authorities.

As a result of the facility noted above, N. Murray Edwards announces that he may indirectly acquire 90% of the warrants described above for the purchase of up to 900,000 additional common shares of Imperial at $10.00 per share. As a result of the initial advance made pursuant to the facility, warrants to purchase 200,000 common shares will be issued to Edco Capital Corporation. Further warrants may be issued as the facility is drawn upon.

Mr. Edwards now holds 1,689,844 common shares of Imperial indirectly, 10,437,435 common shares of Imperial directly, and indirectly holds the right to receive warrants to purchase up to 900,000 common shares of Imperial. Additionally, Mr. Edwards owns $9 million of convertible debentures of Imperial. Each $8.65 of face value of the convertible debenture is convertible into one common share of Imperial. If all the convertible debentures held by Mr. Edwards were converted into common shares then he would own an additional 1,040,462 common shares of Imperial. Mr. Edwards indicated that the acquisition was for investment purposes and that he may acquire additional common shares, convertible debentures or warrants of Imperial from time to time, depending on market conditions. A copy of Mr. Edwards report may be obtained from the persons set forth below.

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