News

Feasibility Loan Agreement


February 19, 2015

Vancouver, B.C. - February 19, 2015 - I-Minerals Inc. (TSX.V: IMA; OTCQX: IMAHF) (the “Company”) announces that it has negotiated a new loan agreement (see the Company’s September 24, 2012 and September 20, 2013 news releases) with a company controlled by Allan Ball, a director of the Company, pursuant to which up to $4,463,000 U.S. will be advanced to the Company in tranches (of which $617,000 U.S. has been advanced to date), such advances to be considered secured loans accruing interest at the rate of 12% per annum calculated and paid semi-annually from the date of each advance. (At the lender’s election, it may direct that the Company pay the interest either in cash or in common shares of the Company; if interest is paid in shares, they will be issued at a deemed price per share equal to the greater of (i) the “Discounted Market Price” of the Company’s shares (as defined in TSX Venture Exchange - the “Exchange” - Policy 5.1) as of the date of the news release announcing the specific debt settlement; and (ii) the volume weighted average trading price (“VWAP”) of the Company’s shares over the 20 trading days prior to the date such interest becomes payable.)

As additional consideration for such advances, the Company has agreed to issue the following securities to the lender:

  1. that number of common shares of the Company equal to 7.5% of the amount of each advance divided by the “Market Price” (as defined in Exchange Policy 1.1 - the “Market Price”) of the Company’s shares as of the date of the advance, subject to the minimum price per share and the maximum number of shares provided for in Exchange Policy 5.1, such shares to be considered “bonus shares” pursuant to the provisions of said Policy 5.1; and
  2. non-transferable share purchase warrants entitling the holder to purchase up to that number of common shares of the Company equal to 7.5% of the amount of each advance, divided by the “Market Price” of the Company’s shares as of the close of business on the date of the advance, subject to the minimum exercise price per share and the maximum number of share purchase warrants provided for in Exchange Policy 5.1, such share purchase warrants to be considered “bonus warrants” pursuant to the provisions of said Policy 5.1;
provided that:
  1. the issuance of the bonus shares and bonus warrants is subject to the Company receiving acceptance from the Exchange therefor;
  2. each bonus warrant will entitle the holder to purchase one common share of the Company at a price equal to the greater of:
    1. the “Market Price” of the Company’s shares as of the close of business on the date of the advance; and
    2. the VWAP of the Company’s shares over the 20 trading days immediately prior to the date of the advance;
for a period expiring on the earlier of:
  1. December 1, 2018; and
  2. the date the amount of the advance, together with all accrued interest thereon, has been repaid in full.
While any of the principal amount of the indebtedness under the new loan agreement remains outstanding, the Company will, if requested by the lender, include an individual designated by the lender as a nominee for director at the Company’s next annual general meeting subsequent to said request.

The loan agreement also provides that the Company will repay the principal amount of each advance, together with all accrued and unpaid interest thereon, in tranches within 24 months after the date of the last advance pursuant to the loan agreement;

provided that:
  1. in the event the Company enters into a joint venture agreement for the continued development of its Bovill Kaolin Project in Idaho, payments received pursuant to the joint venture agreement will be applied to reduce the indebtedness under the loan agreement;
  2. in the event the Company receives the requisite financing for the capital expenditures required to put the Bovill Kaolin Project into full commercial production, the indebtedness under the loan agreement will become due and payable 5 business days from the closing of such financing;
  3. in the event a person currently not related to the Company requires more than 40% of the issued and outstanding shares of the Company, the indebtedness under the loan agreement will, at the lender’s election and in its sole discretion, become immediately due and payable;
  4. in the event the Company completes any equity financing with a person or persons not currently related to the Company, a sliding scale percentage of the net proceeds received by the Company from any such financing will be applied against the indebtedness pursuant to the loan agreement.
About I-Minerals Inc.

I-Minerals is developing multiple deposits of high purity, high value halloysite, quartz, potassium feldspar and kaolin at its strategically located Helmer-Bovill property in north central Idaho. A 2014 Prefeasibility Study on the Bovill Kaolin Deposit completed by SRK Consulting (USA) Inc. highlights the potential of the Helmer-Bovill property’s Bovill Kaolin deposit: after tax NPV6 of $212 million; 30.5% IRR; 3 year payback and $72.7 million initial CAPEX; $84 million CAPEX including life of mine sustaining capital over a 25 year mine life. Ongoing development work is focused on moving the project towards production.

I-Minerals Inc.

Per: “Thomas M. Conway”

Thomas M. Conway,
President & CEO

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for the sale of securities, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by mean of a prospectus containing detailed information about the company and management, as well as financial statements.

Contact:

Barry Girling
877-303-6573 or 604-303-6573 ext. 102
Email: info@imineralsinc.com
Or visit our website at www.imineralsinc.com

Paul J. Searle, Investor Relations
877-303-6573 or 604-303-6573 ext. 113
Email: psearle@imineralsinc.com

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

This News Release includes certain “forward looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various risks. Actual results could differ materially from those projected as a result of the following factors, among others: changes in the world wide price of mineral market conditions, risks inherent in mineral exploration, risk associated with development, construction and mining operations, the uncertainty of future profitability and uncertainty of access to additional capital.

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