International Minerals Corporation
Swiss : IMZ

International Minerals Corporation

April 07, 2006 08:30 ET

International Minerals Announces Public Offering

SCOTTSDALE, ARIZONA--(CCNMatthews - April 7, 2006) -


International Minerals Corporation ("IMC") (TSX:IMZ)(SWX:IMZ)(FWB:MIW) announced today that it has filed a preliminary short form prospectus with the securities regulatory authorities in all of the provinces of Canada in connection with a proposed public offering of units ("Units") and convertible unsecured subordinated debentures ("Debentures") (collectively the "Offering"). The Offering will also be placed privately to qualified institutional buyers in the United States and internationally, in accordance with appropriate private placement exemptions. TD Securities Inc. and Dundee Securities Corporation will be co-lead underwriters for the Offering together with a syndicate of investment dealers.

The Offering is targeting a total of approximately Cdn$98 million, comprising:

- Approximately Cdn$52 million of Units of IMC, with each Unit comprised of one common share and one half-warrant. Each whole warrant will entitle the holder to purchase one additional common share at a fixed price for two years from the date of closing of the Offering. In addition, IMC has granted the underwriters an option exercisable for a period of 30 days following the closing of the Offering, to purchase up to an additional 10% of the Units offered pursuant to the Offering.

- Approximately Cdn$46 million of Debentures of IMC, maturing in 2012, convertible into common shares of IMC at the option of the holder at a fixed price and non-callable by IMC for a three-year period.

Pricing and confirmation of other details of the Offering, together with filing of the final short form prospectus, are expected to take place on or about May 4, 2006. Closing of the Offering is expected on or about May 12, 2006.

Proceeds from the financing 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 mineral exploration and development company with a focus on high-grade gold-silver deposits in Ecuador and Peru. The Company currently has approximately 81.6 million shares issued and 86.7 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 terms of the securities to be distributed, the closing of the Offering and 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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