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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Imperial Metals Corporation
Imperial Metals Corporation
Chief Financial Officer