Imperial Metals Corp. closed a C$20 million bridge loan financing with two major shareholder affiliates to support ongoing operations and for general working capital purposes.
The bridge loan is secured by all assets of the company and is subordinated to the senior credit facility and second-lien credit facility lenders, according to the July 31 release.
The company started talks with senior lenders in early July, looking for a waiver of its financial obligations after weak production results in the first half of the year.
Imperial owns and operates the Red Chris and Mount Polley copper-gold mines in British Columbia.
The loan will accrue interest at 8% per annum and will be payable monthly starting Aug. 31.
The bridge loan will mature on the earlier of Oct. 15 or when the company secures additional financing.
Edco Capital Corp., controlled by N. Murray Edwards, and The Fairholme Partnership LP, a private fund advised by Fairholme Capital Management LLC, provided C$10 million each for the new funding.