Imperial Metals Corporation
TSX : III

Imperial Metals Corporation

January 08, 2007 09:08 ET

Imperial Raises Bid for bcMetals

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 8, 2007) - Imperial Metals Corporation (TSX:III) today announced it's wholly owned subsidiary, CAT-Gold Corporation, will increase its all-cash offer to acquire the outstanding common shares of bcMetals Corporation ("bcMetals") to $1.125 per share.

In addition to increasing the bid price, CAT-Gold will also reduce the minimum tendering condition of its offer to 50% plus one of the outstanding common shares of bcMetals, on a fully diluted basis (but assuming cancellation of all out-of-the-money securities of bcMetals), inclusive of the common shares owned by CAT-Gold and its affiliates.

The expiry time for CAT-Gold's bid remains unchanged. The bid remains open for acceptance until 4:00 pm (Pacific time) on Friday, February 9, 2007.

A notice of variation will presently be filed with applicable securities regulatory authorities and mailed to bcMetals' shareholders and holders of out-of-the-money securities. The price of CAT-Gold's all-cash offer to purchase the outstanding out-of-the-money securities of bcMetals remains unchanged, at $0.02 per out-of-the-money security.

CAT-Gold's bid, which is supported by the board of directors of bcMetals, is financially superior and less conditional than the current unsolicited bid for the common shares and out-of-the-money warrants of bcMetals made by Taseko Mines Limited ("Taseko").

Imperial and its affiliates currently hold approximately 17.2% (7,389,694 shares) of the issued and outstanding common shares of bcMetals, on a fully diluted basis (but assuming cancellation of all out-of-the-money securities of bcMetals), compared to Taseko's approximately 4% holding (1,791,600 shares), on a fully diluted basis. Accordingly, fewer shares are required to be tendered into CAT-Gold's bid than are required to be tendered into Taseko's bid for the minimum tendering condition to be met.

In addition, on January 6, 2007, Imperial entered into a loan agreement with bcMetals for the provision of up to $3 million to cover bcMetals working capital requirements. Interest on the loan, which is unsecured and repayable June 30, 2007, is at chartered bank prime rate. Imperial will advance $2 million to bcMetals under this loan arrangement today.

Investors and security holders of bcMetals are urged to read the formal offer and takeover bid circular of CAT-Gold dated January 3, 2007, and any amendments thereto when they become available, as they contain important information. A copy of the formal offer and takeover bid circular will be available on Imperial's website www.imperialmetals.com, the SEDAR website www.sedar.com, or by direct request to Imperial.

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