Imperial Metals Corporation

Imperial Metals Corporation

March 09, 2005 20:44 ET

Imperial Completes $20 Million Private Placement of Convertible Debentures


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: IMPERIAL METALS CORPORATION

TSX SYMBOL: III

MARCH 9, 2005 - 20:44 ET

Imperial Completes $20 Million Private Placement of
Convertible Debentures

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 9, 2005) - Imperial
Metals Corporation (TSX:III)

NOT INTENDED FOR DISSEMINATION IN THE UNITED STATES

Imperial Metals Corporation announces the closing of a $20 million
private placement of Convertible Debentures as previously announced on
February 18, 2005.

Haywood Securities Inc. as lead agent, along with First Associates
Investments Inc. and Raymond James Ltd. placed gross proceeds of $10
million Face Value of 6% Unsecured Convertible Debentures. Each $8.65 of
Face Value is convertible into one common share of Imperial at any time
until 5 years plus one day after the date of closing.

Directors, Officers, Insiders and Employees of the Company purchased, on
a non brokered private placement basis, an additional $10 million Face
Value of 6% Unsecured Convertible Debentures, on the same terms as the
brokered private placement with the exception that the price of the
Convertible Debentures will be discounted 4% in place of commission
being paid, resulting in the same net proceeds to the Company.

The $19.1 million net proceeds will be used to complete the restart of
operations at the Company's wholly owned Mount Polley open pit
copper-gold mine near Williams Lake BC, as well as for further
exploration and development of the Mount Polley property, repayment of
the Company's line of credit facility and for general working capital
purposes. The Company's $5 million line of credit facility has been
terminated upon its repayment in full.

The renovation to the Mount Polley mill is now substantially complete
and the mill began processing ore on March 8, 2005.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Imperial Metals Corporation
    Brian Kynoch
    President
    (604) 669-8959
    or
    Imperial Metals Corporation
    Sabine Goetz
    Investor Relations
    (604) 488-2657
    info@imperialmetals.com
    www.imperialmetals.com