Fairholme – A Special Situation: Imperial Metals Corporation

Fairholme - A Special Situation: Imperial Metals Corporation by Fairholme

Imperial Metals Corporation, founded in 1959 and listed on the Toronto Stock Exchange as "III", is an atypical junior miner with a market cap of approximately US$700 million. Imperial explores for copper, gold, and silver mineral deposits, develops mining sites, and focuses on maintaining core ownership of assets with the mantra, "own what we operate". Operations are focused primarily in British Columbia, Canada, where Imperial processes mineralized ore into concentrate, which is then shipped to Asia for refining.

Fairholme, as adviser to its clients, began acquiring Imperial Metals in 2006, and by 2014 was the second largest shareholder with 19.7% of shares outstanding. Imperial’s largest shareholder is Edco Financial Holdings...