January 5, 2016
Vancouver, B.C. – January 5, 2016 - I-Minerals
Inc. (TSX.V: IMA; OTCQX: IMAHF) (the “Company”)
announces that it has issued an additional 746,811
bonus shares and an additional 746,811 non-transferable bonus warrants to a
company controlled by Allan Ball, the Chairman and a director of the Company in
respect of cash advances totaling $1,840,000 U.S. pursuant to a loan agreement
announced on February 19, 2015. The
bonus shares were issued at deemed prices ranging from $0.22 Cdn. to $0.255
Cdn. per share. The bonus warrants are
exercisable at prices ranging from $0.22 Cdn. to $0.272 Cdn., and will expire
on the earlier of December 31, 2018 and the date the amount of the individual
advance pursuant to which the bonus warrants were issued, together with all
accrued interest thereon, has been repaid in full. All of the bonus shares and any additional
shares which may be issued pursuant to the exercise of the bonus warrants, are subject
to a hold period in Canada until May 6, 2016.
The issuance of these
shares and warrants was made pursuant to the exemption from the registration
provided by Rule 506 of the Securities Act of 1933, as amended (the “U.S.
Securities Act”), on the basis of representations provided by the lender that
it is an “accredited investor” as that term is defined in Rule 501 of the U.S.
Securities Act. The Company did not engage in any form of general solicitation
or general advertising in connection with the issuance of these shares and
The shares (including any
shares issued pursuant to the exercise of the warrants) may only be resold
pursuant to an effective registration statement under the U.S. Securities Act
and any applicable state securities laws or pursuant to another exemption from
registration of the U.S. Securities Act and any applicable state securities
laws. Under Canadian securities laws, all such shares are subject to a hold
period for a period of four months and one day from the date of issuance.
As a result of the issuance
of the shares and warrants disclosed herein, Mr. Ball now holds, directly and
indirectly, the following securities of the Company:
(a) 31,803,652 common shares,
representing approximately 36.85% of the 86,303,952 common shares of the
Company currently issued and outstanding;
(b) share purchase warrants entitling
the holder to acquire up to 9,364,130 common shares of the Company at prices
ranging from $0.14 Cdn. per share to $0.40 Cdn per share having expiry dates
ranging from January 31, 2016 to December 31, 2018; and
(c) incentive stock options entitling
the holder to acquire up to 350,000 common shares of the Company at prices
ranging from $0.10 Cdn. to $0.25 Cdn. per share having expiring dates ranging
from July 30, 2018 to January 29, 2020.
This News Release is being
issued in part pursuant to National Instrument 62-103, which also requires a
report to be filed by Mr. Ball with each of the British Columbia and Alberta
Securities Commissions containing information with respect to his
securityholdings in the Company (an updated Early Warning Report).
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
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.
Thomas M. Conway,
President & CEO
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
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