Limited partnership changes would alter Imperial structure

The corporate structure of Imperial Metals (TSE) should become more simple if negotiations are successful to acquire certain limited partnership interests it does not currently own.

A German firm recently decided to wind up by year-end its limited partnerships which are corporately related to 12 limited partnerships managed by Imperial. The windup creates an opportunity for Imperial to consolidate the property holdings which it holds jointly with the limited partnerships into one company.

If completed, the acquisition would give Imperial a 100% interest in the Mount Polley copper-gold deposit in British Columbia, a 60% interest in the Crow Butte in-situ leach uranium mine in Nebraska, and cash and investments worth about $7 million. Imperial would also have an increased stake in Anglesey Mining, Cathedral Gold, and Colony Pacific Explorations as well as other property interests.

Imperial posted an operating loss of $313,000 on revenues of $3.9 million for its fiscal year, compared to an operating profit of $85,000 on revenues of $4.4 million in fiscal 1991.

This year’s loss was attributed to lower oil and gas prices, reduced management fee income and weak uranium prices.

Imperial expects to receive a mine development certificate shortly for Mount Polley. In the meantime, the company is continuing discussions regarding development financing or prospective joint venture partnership with majors. Imperial President Pierre Lebel described the project as “without doubt the best located of the current crop of large copper and copper-gold, open pit projects presently being explored and studied in British Columbia.” An expansion program is continuing at Crow Butte which is expected to lead to an improved financial performance in 1994 when the operation is expected to become a positive contributor to Imperial’s bottom line.

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