VANCOUVER- Imperial Metals Corp. has signed a deal to sell a 70 per cent interest in its Red Chris copper and gold mine in B.C. to Australia’s Newcrest Mining Ltd. for US$806.5 million in cash.
The company, which will retain a 30 per cent stake in the mine, will form a joint venture for the operation of the mine, with Newcrest acting as the operator.
Imperial says it plans to use the proceeds from the sale to repay debt and for working capital.
The sale is subject to customary conditions including regulatory approvals. It is expected to be completed in the third quarter of this year.
In addition to Red Chris, Imperial owns the Mount Polley and Huckleberry copper mines in B.C.
It also holds a 50 per cent interest in the Ruddock Creek lead-zinc property.