Imperial Metals Seeks $100-Million for Cleanup Effort

By Joel Cuttiford

In the wake of last week’s major oil spill of mine waste in British Columbia, mine owner Imperial Metals Corp. is raising $100-million in debt to cover costs of the cleanup and to finish building the mine at the site.

The tailings dam burst at Imperial’s Mount Polley copper and gold mine, an accident that left many local residents unable to use the water supply.  The cleanup could ultimately cost between $50-million and $500-million.

“While the precise costs of remediation and repair are presently unknown, the company believes that the costs can be managed over time, given the underlying value of the company’s assets and by the resources provided by the additional financing,” Imperial said in a statement.

The company’s shares, which have plummetted since the spill, rose 5.8 percent today in early trading on the TSX.

Mount Polley has been closed indefinitely, costing the company a key source of revenue.

Imperial said that it would issue $100-million worth of convertible debentures.

N. Murray Edwards, the chair of oil and gas company Canadian Natural Resources Ltd., is a top shareholder in Imperial and has played a key role in the company’s response to the spill.

Edwards’ Edco Capital and affiliates have committed to buy $40 million of the issue, and his company has committed to buy more to meet Imperial’s fundraising needs if necessary.

Imperial said the Fairholme Partnership LP has also committed to buy $40-million. The Fairholme Partnership is a hedge fund launched in 2013 by Fairholme Capital Management.


Featured Articles

How Elon Musk pulled off a $44bn hostile takeover of Twitter

As the world’s richest man, Elon Musk, takes over tech giant Twitter, we highlight the timeline that led to this titanic takeover

Amazon, Alphabet, Wells Fargo best workplaces, says LinkedIn

The top 50 workplaces to grow careers prioritise flexible work and tuition-support programs, as top-ranking firms Amazon and Alphabet prove, says LinkedIn

Top 10 women in technology in the US

These 10 women in tech are forging a path into bold areas of innovation and technological ambition, according to sister publication Technology Magazine

8 executive moves to crypto – from mainstream to startup

Technology & AI

Digital Twins tech ‘missing link’ in urban decarbonisation

Technology & AI

The Metaverse Foundry from Infosys is a business playground

Technology & AI