Control at Imperial changes hands

Control of Imperial Metals (TSE) is now in the hands of Calgary investor N.M. Edwards. Through a private financial corporation, Edwards will buy the 20-million-share block held by a group of five European shareholders for an undisclosed price.

The block has been overhanging the market for some time and represents about 38% of Imperial’s 52 million outstanding shares.

News of the change in control was well-received by the market, which bid the issue up to a high of $1.30 — double the pre-announcement level. Edwards will become chairman of Imperial and two new board members will be appointed. Dr. K.P. Geib of Frankfurt, Germany, and Pierre Lebel, president, will remain on the board.

Dean Eyman, a spokesman for Imperial, said Edwards is well-known in Calgary for his involvement in oil plays, including the turnaround in both Canadian Natural Resources and Penn West Petroleum.

Edward’s plans for Imperial Metals have not been disclosed. The company has $17.1 million in working capital, no debt and holds 5.3 million shares of Cathedral Gold Mines (TSE). It also owns the Mt. Polley project. Gibraltar Mines (TSE) is completing a due diligence review on Mt. Polley and can acquire a 50% joint-venture interest in the project.

Gibraltar is investigating the potential of milling the Mt. Polley ore at its nearby McLeese Lake mill.

Geological reserves at Mt. Polley are estimated at 254 million tons grading 0.26% copper and 0.01 oz. gold per ton and include a higher-grade reserve of 54 million tons grading 0.38% copper and 0.016 oz. gold, with a stripping ratio of about 1.76-to-1.