UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE
14A
Proxy Statement Pursuant to Section 14(a) of the
Securities
Exchange Act of 1934
Filed by the Registrant
[ X]
Filed by a Party other than the Registrant
[ ]
Check the appropriate box:
[ ]
Preliminary Proxy Statement
[ ] Confidential, for Use of the
Commission Only (as permitted by Rule 14a‑6(e)(2))
[X] Definitive Proxy Statement
[ ]
Definitive Additional Materials
[ ]
Soliciting Material Pursuant to Section 240.14a‑12
I-MINERALS
INC.
(Name of Registrant as Specified in its Charter)
____________________________________________________________________________
(Name of Person(s) Filing Proxy Statement, if other
than Registrant)
Payment of Filing Fee (Check the appropriate
box):
[
X] No fee required
[ ] Fee
computed on table below per Exchange Act Rules 14a‑6(i)(1) and 0‑11.
1) Title of each class of
securities to which transaction applies:
2) Aggregate number of securities
to which transaction applies:
3) Per unit price or other
underlying value of transaction computed pursuant to Exchange Act Rule 0‑11 (set forth the amount on which the filing
fee is calculated and state how it was determined):
4) Proposed maximum aggregate value
of transaction:
5) Total fee paid:
[
] Fee paid previously with preliminary materials.
[
] Check box if any part of the fee is offset as provided by
Exchange Act Rule 0‑11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the
previous filing by registration statement number, or the Form or Schedule and the date of its filing.
1) Amount Previously Paid:
2) Form,
Schedule or Registration Statement No.:
3) Filing
Party:
4) Date
Filed:
TABLE OF
CONTENTS
i
. 20
I-MINERALS INC.
NOTICE OF 2020 ANNUAL GENERAL MEETING OF SHAREHOLDERS
TO BE HELD ON DECEMBER 10, 2020
To the Company’s Shareholders:
Notice is hereby given that the 2020 Annual General
Meeting (the “Meeting”) of the shareholders of I-Minerals Inc., a corporation continued under the laws of the Canada
Business Corporations Act (“CBCA”) (the “Company”), will be held at Suite 704, 595 Howe Street, Vancouver, British
Columbia, Canada on December 10, 2020, commencing at 10:00 a.m. (Pacific Standard Time), for the following
purposes:
1.
|
To set the number of directors for the ensuing year at five (5)
persons.
|
2.
|
To elect John Theobald, Allen L. Ball, W. Barry Girling, Gary Childress
and Wayne Moorhouse as directors of the Company for the ensuing year.
|
3.
|
To appoint BDO Canada LLP as the auditors of the Company until the next
annual general meeting of the Company and to authorize the directors of the Company to fix the remuneration to be paid
to the auditors.
|
4.
|
To consider, and, if deemed advisable, approve a resolution ratifying
and approving the Company’s 10% “rolling” Stock Option Plan as described in the Proxy Statement.
|
5.
|
To receive the audited financial statements of the Company for the
fiscal year ended April 30, 2020 and the accompanying record for the audits.
|
Only shareholders of record at the close of
business on November 2, 2020 are entitled to notice of, and to vote at, the Meeting.
This year to mitigate risks to the health and
safety of the Company’s shareholders, employees and other stakeholders, the Company will be holding its Meeting in a
telephone conference format. Shareholders will not be able to vote at the meeting via the conference call. Therefore, in
order to vote, registered shareholders of the Company need to complete, date and sign the accompanying form of proxy and
deposit it with the Company’s transfer agent, Computershare Investor Services Inc., 510 Burrard Street, 2nd Floor,
Vancouver, BC V6C 3B9 by mail or fax, no later than forty eight (48) hours (excluding Saturdays, Sundays and
holidays) prior to the time of the Meeting, or adjournment thereof.
Shareholders unable to attend the Meeting in person
are requested to read the enclosed proxy statement and proxy and then complete and deposit the proxy in accordance with
its instructions. Unregistered shareholders must deliver their completed proxies in accordance with the instructions
given by their financial institution or other intermediary that forwarded the proxy to them.
BY ORDER OF THE BOARD OF DIRECTORS OF
I-MINERALS INC.
/s/ John Theobald
John Theobald,
Chief Executive Officer, President and Director
Vancouver, British Columbia
November 10, 2020
ii
IMPORTANT
Whether or not you expect to attend in person,
the Company urges you to sign, date, and return the enclosed proxy at your earliest convenience. This will help to
ensure the presence of a quorum at the Meeting. PROMPTLY SIGNING, DATING, AND RETURNING THE PROXY WILL SAVE I-MINERALS
INC. THE EXPENSE AND EXTRA WORK OF ADDITIONAL SOLICITATION. Sending in your proxy will not prevent you from voting
your shares at the Meeting if you desire to do so, as your proxy is revocable at your option.
ii
I-MINERALS INC.
Suite 880, 580 Hornby Street
Vancouver, British Columbia, Canada V6C
3B6
PROXY
STATEMENT
FOR THE 2020 ANNUAL GENERAL MEETING OF THE
SHAREHOLDERS
TO BE HELD ON DECEMBER 10, 2020
This Proxy Statement is being furnished in connection with the
solicitation of proxies by the Board of Directors of I-Minerals Inc. (“we”, “us”, “our” and the “Company”) for use at
the 2020 Annual General Meeting of the shareholders of the Company (the “Meeting”) to be held on December 10, 2020 at
10:00 a.m. (Pacific Standard Time) at Suite 704, 595 Howe Street, Vancouver, British Columbia, Canada and at any
adjournment thereof, for the purposes set forth in the preceding Notice of Annual General Meeting.
This Proxy Statement, the Notice of Annual General
Meeting and the enclosed proxy card are expected to be mailed to the Company’s shareholders on or about November 10,
2020.
The Company does not expect that any matters other than those
referred to in this Proxy Statement and the Notice of Annual General Meeting will be brought before the Meeting.
However, if other matters are properly presented before the Meeting, the persons named as proxy appointees will vote
upon such matters in accordance with their best judgment. The grant of a proxy also will confer discretionary authority
on the persons named as proxy appointees to vote in accordance with their best judgment on matters incidental to the
conduct of the Meeting.
The date of this Proxy Statement is November 10, 2020.
Important Notice Regarding the Internet Availability of
Proxy Materials for the Meeting to be held on December 10, 2020. This Proxy Statement to the shareholders is
available on the Company’s website at www.imineralsinc.com/s/investors/asp.
QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS AND THE MEETING
Why am I receiving this
Proxy Statement and proxy card?
You are receiving this Proxy Statement and proxy
card because you are a shareholder of record as at the close of business on November 2, 2020 (the “Record Date”), and
are entitled to vote at this Meeting. This Proxy Statement describes issues on which the Company would like you,
as a shareholder, to vote. It provides information on these issues so that you can make an informed
decision. You do not need to attend the Meeting to vote your shares.
When you sign the proxy card,
you appoint the directors and/or officers (the “Designated Persons”) who are named in the proxy card of the
Company. The Designated Persons will vote your shares at the Meeting (or any adjournments or postponements) as you
have instructed them on your proxy card. With proxy voting, your shares will be voted whether or not you attend the
Meeting. Even if you plan to attend the Meeting, it is a good idea to complete, sign and return your proxy card in
advance of the Meeting, just in case your plans change.
If no choice is specific in
the proxy with respect to a matter to be acted upon, the proxy confers discretionary authority with respect to that
matter upon the Designated Persons named in the proxy card. It is intended that the Designated Persons will vote
the common shares represented by the proxy in favour of each matter identified in the proxy and for the nominees of the
Company’s Board of Directors and auditors.
1
If an issue comes up for vote at the Meeting (or any adjournments or postponements) that is not described in this
Proxy Statement, the Designated Persons will vote your shares, under your proxy, at their discretion, subject to any
limitations imposed by law.
How do I attend the
Meeting via Telephone Conference
Attendance of the meeting will also be available to
shareholders via tele-conference. In response to the outbreak of COVID-19, the provincial government of British Columbia
declared a state of emergency which is currently ongoing. We would therefore encourage all shareholders to avail of the
tele-conference option in their attendance of the meeting. To attend the meeting via tele-conference we would ask that
shareholders complete the form attached hereto as Schedule “B”, completing all requested information and e-mail a copy
to reception@stockslaw.com or submit by Facsimile: (604) 687 6650 Attn: Thomas Moggan
Once received, you will receive a telephone and
conference room number with which to attend the meeting.
Who is soliciting my vote?
The Board of Directors of the Company is soliciting your proxy to vote at the Meeting.
Who pays for this proxy solicitation?
The Company will bear the entire cost of solicitation of proxies, including preparation, assembly
and mailing of this proxy statement, the proxy and any additional information furnished to shareholders. Copies of
solicitation materials will be furnished to banks, brokerage houses, depositories, fiduciaries and custodians holding
shares in their names that are beneficially owned by others to forward to these beneficial owners. The Company may
reimburse persons representing beneficial owners for their costs of forwarding the solicitation material to the
beneficial owners of the shares at the Company's discretion. Original solicitation of proxies by mail may be
supplemented by telephone, facsimile, electronic mail or personal solicitation by the Company’s directors, officers or
other regular employees. No additional compensation will be paid to directors, officers or other regular employees for
such services.
Who is entitled to attend and vote at the Meeting?
Only shareholders of the Company of record at the close of business on November 2, 2020, will be
entitled to vote at the Meeting. Shareholders entitled to vote may do so by voting those shares at the Meeting or
by proxy.
What matters am I voting on?
You are being asked to vote on the
following matters:
1.
|
To set the number of directors for the ensuing year at five (5)
persons.
|
2.
|
To elect John Theobald, Allen L. Ball, W. Barry Girling, Gary Childress and
Wayne Moorhouse as directors of the Company for the ensuing year.
|
3.
|
To appoint BDO Canada LLP as the auditors of the Company until the next
annual general meeting of the Company and to authorize the directors of the Company to fix the remuneration to be paid
to the auditors.
|
4.
|
To consider, and, if deemed advisable, approve a resolution ratifying and
approving the Company’s 10% “rolling” Stock Option Plan.
|
5.
|
To receive the audited financial statements of the Company for the fiscal
year ended April 30, 2020 and the accompanying record for the audits.
|
2
The Company will also consider any other business that
properly comes before the Meeting.
How do I
vote?
The voting process is
different depending on whether you are a registered shareholder or a beneficial shareholder:
- You are a
registered shareholder if your common shares are registered in your name (“Registered Shareholder”).
- You are a
beneficial shareholder if your shares are held on your behalf by your intermediary (“Beneficial Shareholder”).
Registered Shareholder:
Common Shares Registered in Your Name
If you are a Registered
Shareholder, you are entitled to vote in persons at the Meeting or by proxy whether or not you attend the Meeting.
You may vote by proxy:
- by signing your proxy card and mailing it to the
Company’s transfer agent at the address on the proxy card;
- by signing and e-mailing your proxy card to the
Company’s transfer agent for proxy voting at the e-mail address provided on the proxy card;
- by telephone by following the
instructions set out in the proxy card; and
- through the internet by following the instructions
set out in the proxy card.
If you wish to submit a
proxy, whether by paper, telephone, email, or internet, you must complete and sign the proxy, and then return it to the
Company’s transfer agent, Computershare Investor Services Inc., in accordance with the instructions set forth in the
proxy card, no later than 48 hours (excluding Saturdays, Sundays and holidays) prior to the time of the Meeting, or
adjournment thereof. The chair of the Meeting may waive the proxy cut-off without notice. If the proxy is not dated, it
will be deemed to be dated seven calendar days after the date on which it was mailed to you (the Registered
Shareholder).
Beneficial Shareholder:
Common Shares Registered in the Name of an Intermediary such as a Brokerage Firm, Bank, Dealer or other Similar
Organization
The following information is
of significant importance to those shareholders who do not hold shares in their own name. Beneficial Shareholders should
note that only proxies deposited by shareholders whose names appear on the records of the Company as the registered
holders of common shares can be recognized and acted upon at the Meeting
If your common shares are
listed in an account statement provided to you by a broker, then in almost all cases your common shares will not be
registered in your name on the records of the Company. In such circumstances, your common shares will more likely
be registered under the names of your broker or an agent of that broker. In Canada, the vast majority of such
common shares are registered under the name of CDS & Co., being the registration name for The Canadian Depository
for Securities Limited (which acts as nominee for many Canadian brokerage firms), and in the United States, under the
name of Cede & Co., as nominee for The Depository Trust Company (which acts a depository for many U.S. brokerage
firms and custodian banks). You should ensure that instructions respecting the voting of your common shares are
communicated to the appropriate person well in advance of the Meeting.
Regulatory polices require
Intermediaries to seek voting instructions from Beneficial Shareholders in advance of shareholder meetings.
Beneficial Shareholders have the option of not objecting to their Intermediary disclosing certain ownership information
about themselves to the Company (such Beneficial Shareholders are designated as non-objecting beneficial owners, or
“NOBOs”) or objecting to their Intermediary disclosing ownership information about themselves to the Company (such
Beneficial Shareholders are designated as objecting beneficial owners, or “OBOs”).
3
In accordance with the requirements of National Instrument 54-101 – Communication with Beneficial Owners of Securities of a Reporting Issuer, the
Company has elected to send the Proxy Statement, the Notice of Annual General Meeting and a request for voting
instructions (a “VIF”), instead of a proxy (the Proxy Statement, the Notice of Annual General Meeting and VIF or proxy
are collectively referred to as the “Meeting Materials”) directly to the NOBOs. The Company will not be paying to
send the Meeting Materials to OBOs. OBOs will not receive a copy of the Meeting Materials unless their
Intermediaries (or their service companies) assume the cost of delivery. A VIF enables a Beneficial Shareholder to
provide instructions to the registered holder of its common shares as to how those shares are to be voted at the Meeting
and allow the registered holder to provide a Proxy voting the common shares in accordance with those instructions. A VIF
should be completed and returned in accordance with its instructions. The results of the VIFs received from NOBOs
will be tabulated and appropriate instructions respecting voting of common shares to be represented at the Meeting will
be provided to the registered shareholders.
Intermediaries are required
to seek voting instructions from OBOs in advance of the Meeting. Every Intermediary has its own mailing procedures and
provides its own return instructions, which should be carefully followed by OBOs to ensure that their common shares are
voted at the Meeting. Most brokers now delegate responsibility for obtaining voting instructions from clients to
Broadridge Investor Communications Solutions (“Broadridge”), which mails the materials for the Meeting to OBOs and asks
them to return a VIF to Broadridge. An OBO receiving a VIF from Broadridge may use that VIF to vote common shares
directly at the Meeting if the OBO inserts their name as the name of the person to represent them at the Meeting. The
VIF must be returned to Broadridge well in advance of the Meeting in order to have the common shares voted.
In either case, the purpose
of this procedure is to permit Beneficial Shareholders to direct the voting of the shares which they beneficially
own. If you receive a VIF, you cannot use it to vote your common shares directly at the Meeting. You should
carefully follow the instructions set out in the VIF including those regarding when and where the VIF is to be
delivered. If you wish to attend the Meeting as a Beneficial Shareholder or have someone else attend on your
behalf, you will need to write their name (or their nominee’s name) in the space provided in the VIF and return it in
accordance with the instructions of the VIF.
Only Registered Shareholders
have the right to revoke a proxy. As a Beneficial Shareholder, you will need, at least seven days before the
Meeting, to arrange for your Intermediary to revoke your VIF on your behalf.
These securityholder
materials are being sent to both Registered Shareholders and Beneficial Shareholders. If you are a Beneficial
Shareholder, and the Company or its agent has sent these materials directly to you, your name and address and
information about your holdings of securities, have been obtained in accordance with applicable securities regulatory
requirements from the intermediary holding on your behalf.
By choosing to send these
materials to you directly, the Company (and not the intermediary holding on your behalf) has assumed responsibility for
(i) delivering these materials to you, and (ii) executing your proper voting instructions. Please return your voting
instructions as specified in the request for voting instructions.
What if
I share an address with another person and we received only one copy of the proxy materials?
The Company will only deliver one Proxy Statement to multiple
shareholders sharing an address unless it has received contrary instructions from one or more of the shareholders. The
Company will promptly deliver a separate copy of this Proxy Statement to a shareholder at a shared address to which a
single copy of the document was delivered upon oral or written request to:
I-Minerals Inc.
Attention: Matthew Anderson, Chief
Financial Officer
Suite 880, 580 Hornby Street
Vancouver, British Columbia, Canada V6C 3B6
Shareholders may also address future requests for separate
delivery of Proxy Statements and/or annual reports by contacting us at the address listed above.
4
How do I appoint a proxyholder?
A shareholder has the
right to appoint a person or company (who need not be a shareholder) to attend and act for or on behalf of that
shareholder at the Meeting, other than the Designated Persons named in the enclosed proxy card.
To exercise
the right, the shareholder may do so by striking out the printed names and inserting the name of such other person and,
if desired, an alternate to such person, in the blank space provided in the proxy card. Such shareholder should
notify the nominee of the appointment, obtain the nominee’s consent to act as proxy and should provide instruction to
the nominee on how the shareholder’s shares should be voted. The nominee should bring personal identification to
the Meeting.
What if I change my mind after I return my proxy?
You may revoke
your proxy and change your vote at any time before the polls close at the Meeting. You may do this by:
(a)
|
executing and delivering a written notice of revocation of proxy to the
office of the Company at any time before the taking of the vote at the Meeting;
|
(b)
|
executing and delivering a later-dated proxy relating to the same shares
to the office of the Company at any time before taking of the vote at the Meeting; or
|
(c)
|
attending the Meeting in person and:
|
|
(i)
|
giving affirmative notice at the Meeting of your intent to revoke their
proxy; and
|
Any written
revocation of proxy or subsequent later-dated proxy should be delivered to the office of the Company as follows:
I-Minerals Inc., Attention: Matthew Anderson, Chief Financial Officer, Suite 880, 580 Hornby Street, Vancouver, British
Columbia, Canada V6C 3B6. Attendance at the Meeting will not, by itself, revoke a shareholder’s proxy without the
giving of notice of intent to revoke that proxy.
What constitutes a quorum?
In order to hold a valid meeting of the Company’s
shareholders, a quorum equal to one shareholder must be present at the meeting, in person or represented by proxy.
Shareholders who abstain from voting on any or all proposals,
but who are present at the Meeting or represented at the Meeting by a properly executed proxy will have their shares
counted as present for the purpose of determining the presence of a quorum. Broker non-votes will also be counted
as present at the Meeting for the purpose of determining the presence of a quorum. However, abstentions and broker
non-votes will not be counted either in favor or against any of the proposals brought before the Meeting. A broker
non-vote occurs when shares held by a broker for the account of a beneficial owner are not voted for or against a
particular proposal because the broker has not received voting instructions from that beneficial owner and the broker
does not have discretionary authority to vote those shares.
In the event that a quorum is not present at the Meeting, or
in the event that a quorum is present but sufficient votes to approve the proposal are not received, the persons named
as proxies on the enclosed proxy card may propose one or more adjournments of the Meeting to permit further solicitation
of proxies. The persons named as proxies will vote upon such adjournment after consideration of all circumstances that
may bear upon a decision to adjourn the Meeting. Any business that might have been transacted at the Meeting originally
called may be transacted at any such adjourned session(s) at which a quorum is present. The Company will pay the
costs of preparing and distributing to shareholders additional proxy materials, if required in connection with any
adjournment. Any adjournment will require the affirmative vote of a majority of those securities represented at the
Meeting in person or by proxy.
5
How are abstentions and broker
non-votes treated?
Shareholders may vote for or against the
proposals or they may abstain from voting. Abstentions and broker non-votes will be counted for purposes of
determining the presence of a quorum at the Meeting, but will not be counted as either in favor or against the
proposals.
What vote is required to approve
each item?
In order for a proposal to be approved, the number
of votes cast at the Meeting in favor of the proposal must be greater than the number of votes cast against the
proposal. As of the Record Date, there were 93,730,212 common shares outstanding and entitled to vote. The
affirmative vote of the holders of a majority of the Company’s common shares represented at the Meeting (except as
specified below) in person or by proxy is required to approve the following proposals:
1.
|
To set the number of directors for the ensuing year at five (5)
persons.
|
2.
|
To elect John Theobald, Allen L. Ball, W. Barry Girling, Gary Childress and
Wayne Moorhouse as directors of the Company for the ensuing year.
|
3.
|
To appoint BDO Canada LLP as the auditors of the Company until the next
annual general meeting of the Company and to authorize the directors of the Company to fix the remuneration to be paid
to the auditors.
|
4.
|
To consider, and, if deemed advisable, approve a resolution ratifying and
approving the Company’s 10% “rolling” Stock Option Plan as described in the Proxy Statement.
|
5.
|
To receive the audited financial statements of the Company for the fiscal
year ended April 30, 2020 and the accompanying record for the audits.
|
Therefore, the number of votes cast at the Meeting
in favor of each of the above proposals must be greater than the number of votes cast against each respective
proposal.
Will my
shares be voted if I do not sign and return my proxy card?
If you are a
Beneficial Shareholder, your intermediary, under certain circumstances, may vote your shares.
If you are a
Registered Shareholder, and you do not sign and return your proxy card, your shares will not be voted at the
Meeting.
Will I
be entitled to appraisal rights under the Canada Business Corporations Act?
Under the
Canada Business Corporations Act, the Company’s shareholders are not entitled to appraisal rights in connection
with the proposals.
When are the shareholder proposals due for
the 2021 Annual Meeting?
The deadline for submitting a shareholder proposal
for inclusion in the Company’s proxy statement and proxy card for its 2021 annual meeting of shareholders pursuant to
Rule 14a-8 of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) is August 11, 2021; provided,
however, that in the event the Company hold its 2021 annual meeting more than 30 days before or after the one year
anniversary date of the 2020 Annual Meeting, the Company will disclose the new deadline by which proxies must be
received under Item 5 of the Company’s earliest possible Quarterly Report on Form 10-Q or, if impracticable, by any
means reasonably calculated to inform shareholders. In addition, shareholder proposals must otherwise comply with
the requirements of Rule 14a-8 of the Exchange Act.
Any shareholders who wish to submit a proposal are
encouraged to seek independent counsel about requirements of the SEC and the Canada Business Corporations
Act. The Company will not consider any proposals that do not meet the SEC and Canada Business Corporations
Act requirements for submitting a proposal. Notices of intention to present proposals for the Company’s next
annual meeting should be delivered to I-Minerals Inc., Suite 880, 580 Hornby Street, Vancouver, British Columbia, Canada
V6C 3B6, Attention: Matthew Anderson, Chief Financial Officer.
6
PROPOSAL NUMBER
ONE – NUMBER OF DIRECTORS
The Articles of the Company
provide for a board of directors of no fewer than three directors and no greater than a number as fixed or changed from
time to time by majority approval of the shareholders.
At the Meeting, shareholders
will be asked to pass an ordinary resolution to set the number of directors of the Company for the ensuing year at five
(5). The number of directors will be approved if the affirmative vote of the majority of common shares present or
represented by proxy at the Meeting and entitled to vote are voted in favour to set the number of directors at five
(5).
Required Vote
The affirmative approval of the holders of record
on the Record Date of a majority of the common shares present or represented by proxy at the Meeting and entitled to
vote is required to approve Proposal Number One.
Recommendation of the Board of Directors
THE BOARD OF DIRECTORS RECOMMENDS THAT
SHAREHOLDERS VOTE “FOR” TO SET THE NUMBER OF DIRECTORS OF THE COMPANY FOR THE ENSUING YEAR AT FIVE (5).
PROPOSAL NUMBER TWO – ELECTION OF DIRECTORS
The Company’s Board of
Directors currently consists of five directors: John Theobald, Allen L. Ball, W. Barry Girling, Gary Childress and Wayne
Moorhouse. At the Meeting, shareholders will elect five directors to serve until the next annual meeting of
shareholders and until their respective successors shall have been duly elected and qualified, or until their death,
resignation or removal. Unless marked otherwise, proxies received will be voted “FOR” the election of the five nominees
named below.
Directors are elected by a
plurality of the votes present in person and represented by proxy and entitled to vote at a meeting at which a quorum is
present. Shares represented by executed proxies will be voted, if authority to do so is not withheld, for the election
of the nominees for director named above. Abstentions will be counted as present for purposes of determining the
presence of a quorum. If a quorum is present, the nominees for director receiving the highest number of votes will be
elected as directors. Abstentions will have no effect on the vote. In the event that any nominee should be unavailable
for election as a result of an unexpected occurrence, such shares will be voted for the election of such substitute
nominee as the Board of Directors may propose.
Nominees
The Board of Directors
intends to nominate the five persons identified as its nominees in this Proxy Statement. The names of each nominee
and certain information about them are set forth below:
Name Of
Nominee
|
Age
|
Position
|
John Theobald
|
63
|
Chief Executive Officer, President and Director
|
Allen L. Ball
|
75
|
Director
|
W. Barry Girling(1)
|
61
|
Senior VP and Director
|
Gary Childress(1)
|
72
|
Director
|
Wayne Moorhouse(1)
|
56
|
Director
|
Note:
(1) Member of the audit committee.
There is no family relationship between the Company’s
directors and there are no legal proceedings to which any of the directors are a party adverse to us or in which any of
the Company’s directors have a material interest adverse to us. Set forth below is a brief description of the
background and business experience of each director for the past five years:
7
John Theobald was appointed President and CEO of the Company on February 27, 2018 and has been a director
since July 21, 2016. Mr. Theobald has over thirty-five years in the international mining industry and has been involved
with exploration, business development, operations, investments and capital markets. Most recently he was a
director of ASX listed High Peak Royalties Ltd, director, CEO & COO of London and TSX listed royalty company Anglo
Pacific Group plc and served as Chairman of First Coal Corporation which was successfully sold to Xstrata plc for C$147
million. From 1999 to 2008 he held a number of senior positions with Sibelco, a major industrial minerals group, where
he gained significant experience of kaolin, feldspar, clay and quartz markets and operations. Mr. Theobald has a B.Sc.
with Honours in Geology from the University of Nottingham, is a Chartered Engineer with the UK Engineering Council,
Fellow of the Institute of Materials Minerals and Mining (UK) and Member of the Institute of Directors (UK).
Allen L. Ball has been a director since
March 2002. Mr. Ball is a successful Idaho business man and has been involved in many business ventures including
farming, farm implement sales, vending machines, cosmetics industry, mining, timber, construction and related materials,
high tech venture capital, commercial car washes, A/R factoring, septic system sales / installation / servicing,
lending, real estate development, hospitality, assisted living, pharmaceutical, firearms manufacturing, fishing
lodge/outfitting, and motorsports sales, but he is probably most known for his involvement in forming Melaleuca, Inc,
which is a manufacturer of wellness products and based in Idaho.
W. Barry Girling has been a director since
March 2002 and in March 2018 was appointed Senior Vice-President. Mr. Girling has been active in various aspects of
mineral exploration since 1977. He couples his geological understanding with a B.Com. (Finance) degree to provide
consulting services to a number of TSX Venture Exchange companies. He has strong capital markets experience gained as a
founder and director of Foundation Resources Inc. and Search Minerals Inc and was a director of Roxgold Inc. from August
2006 through September 2102 completed the re-organization of Roxgold Inc. and the acquisition of its Burkina Faso gold
properties. Aside from I-Minerals Inc., Mr. Girling was from November 2012 President and CEO of Birch Hill Gold
Corporation until it amalgamated with Canoe Mining Ventures in June of 2014, Kiska Metals Inc. until March 2017 and
continues to serve as a director of Zinc One Resources Inc., Silver One Resources Inc. Santa Cruz Silver Mining Inc. and
Plymouth Realty Capital Corp.
Gary Childress has been a director since
November 2013. Mr. Childress has a BS in Ceramic Engineering from Clemson University and has spent much of the last 40
years in industrial minerals or related industries. He has served as General Manager of Edward Orton Ceramic Foundation
since September 2001, the primary focus of which is providing products to assist and enhance high temperature processing
of ceramics and other materials. Mr. Childress also served as Vice President of Hecla Mining Company from 1994 to 2001
where he was responsible for Heclas's industrial mineral division including acquisitions and project development.
Wayne Moorhouse has been a director since
January 6, 2014. Mr. Moorhouse has extensive experience with public companies and has acted as the CFO, corporate
secretary or president of a number of TSX and TSX Venture listed resource companies and their subsidiaries. In
particular, Mr. Moorhouse served as CFO and corporate secretary of Genco Resources Ltd., a former TSX company that had a
producing silver-gold property in Mexico, from June 2003 to October 2010, and as a special advisor to Silvermex
Resources Ltd., a company listed on the TSX that was in process of developing advanced stage silver projects, from
November 2010 to December 2011. Between January 2012 and September 2013, Mr. Moorhouse served as CFO of Roxgold Inc, a
company listed on the TSX Venture Exchange engaged in gold mining in Burkina Faso. Currently, Mr. Moorhouse is COO of
EnviroLeach Technologies Inc., a company listed on the Canadian Securities Exchange engaged in the development of
sustainable technologies for use in the mining and electronic waste processing industries to recover gold and other
metals. Mr. Moorhouse is also a director of Midnight Sun Mining Corp. a TSX Venture listed company involved in exploring
copper properties in Zambia.
Required Vote
The affirmative approval of the holders of record on the Record Date of a majority of the common shares present
or represented by proxy at the Meeting and entitled to vote is required to approve Proposal Number Two.
8
Recommendation of the Board of Directors
THE BOARD OF DIRECTORS
RECOMMENDS THAT SHAREHOLDERS VOTE “FOR” THE ELECTION OF ALL NOMINEES NAMED ABOVE. PROXIES RECEIVED BY THE COMPANY WILL
BE VOTED “FOR” THE ELECTION OF ALL NOMINEES NAMED ABOVE UNLESS THE SHAREHOLDER SPECIFIES OTHERWISE IN THE PROXY.
PROPOSAL NUMBER THREE – APPOINTMENT OF AUDITOR
Shareholders will be asked to vote for the appointment of BDO Canada LLP, Chartered Professional Accountants,
to serve as auditors of the Company to hold office until the next annual general meeting of the shareholders or until
such firm is removed from office or resigns as provided by law and to authorize the Board of Directors of the Company to
fix the remuneration to be paid to the auditors.
BDO audited the Company’s
financial statements for the year ended April 30, 2020, and has been recommended by the Board of Directors pursuant to
the recommendation of the Audit Committee to serve as the Company’s auditors for the fiscal year ending April 30, 2021.
At the direction of the Board of Directors, this appointment is being presented to the shareholders for ratification or
rejection at the Meeting. If the shareholders do not appoint BDO, the Audit Committee may reconsider, but will not
necessarily change, its selection of BDO to serve as the Company’s auditors.
A representative of BDO is
not expected to be present at the Meeting.
Principal Accountant
Fees
The aggregate fees billed for
the two most recently completed fiscal years ended April 30, 2020 and 2019 for professional services rendered by the
principal accountant for the audit of the Company’s annual financial statements and review of the financial statements
included its Quarterly Reports on Form 10-Q and services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for these fiscal periods were as follows:
|
Year Ended April 30, 2020
|
Year Ended April 30, 2019
|
Audit Fees
|
$88,604
|
$88,291
|
Audit Related Fees
|
-
|
-
|
Tax Fees
|
$10,735
|
$11,397
|
All Other Fees
|
-
|
-
|
Total
|
$99,339
|
$99,688
|
Policy on Pre-Approval by Audit Committee of Services Performed by Independent Auditors
The policy of the Company’s
audit committee is to pre-approve all audit and permissible non-audit services to be performed by the Company’s
independent auditors during the fiscal year. Before engaging an independent registered public accountant to render audit
or non-audit services, the engagement is approved by the Company’s audit committee or the engagement to render services
is entered into pursuant to pre-approval policies and procedures established by the audit committee.
Required Vote
The affirmative approval of the holders of record
on the Record Date of a majority of the common shares present or represented by proxy at the Meeting and entitled to
voteis required to approve Proposal Number Three.
9
Recommendation of the
Board of Directors
THE BOARD OF DIRECTORS RECOMMENDS THAT
SHAREHOLDERS VOTE “FOR” THE APPOINTMENT OF BDO CANADA LLP, CHARTERED PROFESSIONAL ACCOUNTANTS, AS THE COMPANY’S
AUDITORS UNTIL THE NEXT ANNUAL GENERAL MEETING AT A REMUNERATION TO BE FIXED BY THE COMPANY’S BOARD OF
DIRECTORS.
PROPOSAL NUMBER FOUR – RATIFICATION AND APPROVAL OF STOCK OPTION PLAN
The Company received
shareholder approval on December 10, 2019 of its “rolling” stock option plan (the “Stock Option Plan”) whereby 10% of
the number of issued and outstanding shares of the Company at any given time may be reserved for issuance pursuant to
the exercise of options. The TSX Venture Exchange requires that the Stock Option Plan be submitted for approval by
the shareholders at the annual general meeting of the Company. Accordingly, management is seeking ratification and
approval of the Stock Option Plan by the shareholders. The board of directors of the Company has approved the
Stock Option Plan and recommends shareholders vote in favour of approving and ratifying the Stock Option Plan.
The Stock Option Plan was
established to provide incentive to directors, officers, employees, management company employees and consultants who
provide services to the Company. The intention of management in proposing the Stock Option Plan is to increase the
proprietary interest of such persons in the Company and thereby aid the Company in attracting, retaining and encouraging
the continued involvement of such persons with the Company.
The Stock Option Plan
provides for a floating maximum limit of 10% of the outstanding common shares, as permitted by the policies of the
Exchange. As of the date of this Proxy Statement, the Company was eligible to grant up to 9,373,021 options under its
Stock Option Plan. There are presently 2,950,000 options outstanding and 6,423,021 remain available under the
Stock Option Plan.
Terms of the Stock Option
Plan
Options may be granted under
the Stock Option Plan to such service providers of the Company and its affiliates, if any, as the Board of Directors may
from time to time designate. The exercise price of option grants will be determined by the Board of Directors, but
cannot be lower than the price permitted by the TSX Venture Exchange. The Stock Option Plan provides that the
number of common shares that may be reserved for issuance to any one individual upon exercise of all stock options held
by such individual may not exceed 5% of the issued common shares, if the individual is a director or officer, or 2% of
the issued common shares, if the individual is a consultant or engaged in providing investor relations services, on a
yearly basis. Subject to earlier termination, all options granted under the Stock Option Plan will expire not later than
the date that is five years from the date that such options are granted. In the event that an optionee ceases to be a
director, officer, employee or consultant, the option will terminate within ninety days. In the event of the death
of an optionee, the options will only be exercisable within 12 months of such death. Options granted under the
Stock Option Plan are not transferable or assignable other than by will or other testamentary instrument or pursuant to
the laws of succession.
Disinterested Shareholder Approval
Under the policies of the TSX Venture Exchange, if the grant of options under the proposed Stock Option Plan
to insiders of the Company, together with all of the Company’ outstanding stock options, could result at any time
in:
|
(a)
|
the number of shares reserved for issuance pursuant to stock options granted
to insiders of the Company exceeding 10% of the issued common shares of the Company;
|
|
(b)
|
the grant to insiders of the Company, within a 12 month period, of a number
of options exceeding 10% of the issued common shares of the Company; or
|
|
(c)
|
the issuance to any one optionee, within a 12 month period, of a number of
shares exceeding 5% of the issued common shares of the Company,
|
10
the Company must obtain
disinterested shareholder approval. The policies of the TSX Venture Exchange and the terms of the proposed Stock
Option Plan also provide that disinterested shareholder approval will be required for any agreement to decrease the
exercise price of options previously granted to insiders of the Company. The term disinterested shareholder
approval means approval by a majority of the votes cast at the Meeting other than votes attaching to shares of the
Company beneficially owned by insiders of the Company to whom options may be granted under the proposed Stock Option
Plan.
A copy of the Stock Option
Plan is set forth in Appendix “A” of this Proxy Statement.
Required Vote
The affirmative approval of the holders of record
on the Record of a majority of the common shares present or represented by proxy at the Meeting and entitled to
voteis required to approve Proposal Number Four.
Recommendation of the
Board of Directors
THE BOARD OF DIRECTORS RECOMMENDS THAT
SHAREHOLDERS VOTE “FOR” THE RATIFICATION AND APPROVAL OF THE STOCK OPTION PLAN.
AUDIT
COMMITTEE AND CORPORATE GOVERNANCE
Meetings and Committees
of the Board of Directors
During the fiscal year ended April 30, 2020, the
Company’s Board of Directors held four meetings and various matters were approved by consent resolution of the entire
board. The Company’s audit committee held four meetings during the fiscal year ended April 30, 2020. Although we
do not have a formal policy regarding director attendance at annual general meetings, directors are encouraged to attend
the Meeting absent extenuating circumstances.
Audit Committee
Audit Committee
Charter
The Company’s audit committee
is governed by an audit committee charter, the text of which is attached as Appendix “B” to this Proxy Statement.
Composition
The Company’s audit committee
currently consists of three directors, W. Barry Girling, Gary Childress and Wayne Moorhouse. As defined in Canadian
National Instrument 52-110 – Audit Committees (“NI 52-110”), Messrs. Childress and Moorhouse are considered
“independent” and Mr. Girling is not considered “independent”. A member of the audit committee is “independent” if the
member has no direct or indirect material relationship with the Company. A material relationship means a relationship
which could, in the view of the Company’s board of directors, reasonably interfere with the exercise of the member’s
independent judgment.
None of the members of the
audit committee are considered an “audit committee financial expert” as defined under Item 407(d)(5) of the Exchange
Act.
Relevant Education and
Experience
NI 52-110 provides that a
member of the audit committee is considered to be “financially literate” if he has the ability to read and understand a
set of financial statements that present a breadth and level of complexity of accounting issues that are generally
comparable to the breadth and complexities of the issues that can reasonably be expected to be raised by the Company.
All of the members of the Company’s audit committee are considered to be “financially literate”, as that term is defined
in NI 52-110.
11
Barry Girling received a B. Comm. (Finance) from the University of British Columbia in 1990 and has been active
in the public markets since then, serving as a director and/or officer of several public companies with relevant
experience in financing, accounting and other functions.
Gary Childress was the General Manager and
Secretary of The Edward Orton Jr. Ceramic Foundation. Mr. Childress has more than 25 years’ experience as a senior
executive directly involved in the mining, processing and marketing of industrial minerals.
Wayne Moorhouse Mr. Moorhouse has extensive
experience with public companies and has acted as the CFO, corporate secretary or president of a number of TSX and TSX
Venture listed resource companies and their subsidiaries. In particular, Mr. Moorhouse served as CFO and corporate
secretary of Genco Resources Ltd., a former TSX company that had a producing silver-gold property in Mexico, from June
2003 to October 2010, and as a special advisor to Silvermex Resources Ltd., a company listed on the TSX that was in
process of developing advanced stage silver projects, from November 2010 to December 2011. Between January 2012 and
September 2013, Mr. Moorhouse served as CFO of Roxgold Inc, a company listed on the TSX Venture Exchange engaged in in
gold mining in Burkina Faso. Currently, Mr. Moorhouse is COO of EnviroLeach Technologies Inc., a company listed on the
Canadian Securities Exchange engaged in the development of sustainable technologies for use in the mining and electronic
waste processing industries to recover gold and other metals. Mr. Moorhouse is also a director of Midnight Sun Mining
Corp. a TSX Venture listed company involved in exploring copper properties in Zambia.
The board of directors believes that the audit
committee members have the relevant education and experience to comply with NI 52-110.
Audit Committee
Oversight
At no time since the
commencement of the Company’s most recent completed financial year has a recommendation of the Audit Committee to
nominate or compensate an external auditor not been adopted by the Board of Directors.
Reliance on Certain Exemptions
At
no time since the commencement of the Company’s most recently completed financial year has the Company relied on the
exemption in Sections 2.4 and 6.1.1 of NI 52-110, or an exemption from NI 52-110, in whole or in part, granted under
Part 8 of NI 52-110.
Pre-Approval Policies and Procedures
The
Audit Committee has adopted specific policies and procedures for the engagement of non-audit services as described above
under the heading “Proposal Number Three – Ratification of Selection of Independent Registered Public Accounting Firm
– Policy on Pre-Approval by Audit Committee of Services Performed by Independent Auditors”.
Exemption
The
Audit Committee has relied on an exemption under Part 6.1 of NI 52-110.
Compensation
Committee
The Company does not have a compensation
committee.
Director
Nomination
The Board of Directors has not formed a nominating
committee or similar committee to assist the Board of Directors with the nomination of directors for the Company. The
Board of Directors considers itself too small to warrant creation of such a committee; and each of the directors has
contacts he can draw upon to identify new members of the Board of Directors as needed from time to time.
12
The Board of
Directors will continually assess its size, structure and composition. Nominees for director will be selected on
the basis of their integrity, experience, achievements, judgment, intelligence, personal character, and capacity to make
independent analytical inquiries, ability and willingness to devote adequate time to Board duties, and likelihood that
he or she will be able to serve on the Board for a sustained period. Due consideration will be given to the Board's
overall balance of diversity of perspectives, backgrounds and experiences. At a minimum, each nominee will be expected
to:
|
(a)
|
understand the Company's business and the industry in general;
|
|
(b)
|
regularly attend meetings of the Board and of any committees on which the
director serves;
|
|
(c)
|
review in a timely fashion and understand materials circulated to the
Board regarding the Company or the industry;
|
|
(d)
|
participate in meeting and decision making processes in an objective and
constructive manner; and
|
|
(e)
|
be reasonably available, upon request, to advise the Company's
officers.
|
13
Corporate Governance Practices
Director
Independence
The Company’s common
shares trade in Canada on the TSX Venture Exchange and in the over-the-counter in the United States on the OTCQB market
place. The Company’s securities are not listed in the United States on a national securities exchange or an
interdealer quotation system.
When assessing the independence of the Company’s
Board of Directors, for corporate governance purposes, applies the rules of the TSX Venture Exchange. Under the
rules of the TSX Venture Exchange, the Company is required to have a minimum of two independent directors. For
purposes of the TSX Venture Exchange rules, a director is considered to be “independent” if he or she has no direct or
indirect relationship that could, in the view of the Board of Directors, reasonably interfere with the exercise of his
or her independent judgment. Under these rules, any person meeting the following criteria would be deemed to have
a “material relationship” to us, and to not be independent:
(a)
|
Anyone that has been an employee or executive officer within the last 3
years;
|
(b)
|
Any immediate family member of a person that has been an executive
officer within the last 3 years;
|
(c)
|
Any person that is a partner or employee of our internal or external
auditors, or was a partner or employee of our internal or external auditors within the last 3 years and personally
worked on our audit during that time;
|
(d)
|
Any person that has a spouse or a child that shares the person’s home
that is a partner of our internal or external auditor;
|
(e)
|
Any person that is or has been, within the last 3 years, or has an
immediate family member that is or has been, within the last 3 years, an executive officer of another entity, if any of
our current executive officers serve or served at the same time with that person on the other entity’s compensation
committee; and
|
(f)
|
Any person that received more than $75,000 in direct compensation from
us during any 12 month period within the last three years.
|
However, when
assessing the independence of the Company’s directors for purposes of this section, the Company has applied the
definition of independence set out in NASDAQ Rule 5605(a)(2). Generally, NASDAQ Rule 5605(a)(2) provides that a
director is independent if he or she is not an executive officer or employee, and does not otherwise have a relationship
which, in the opinion of the Company’s Board of Directors, would interfere with the exercise of independent judgment in
carrying out his or her responsibilities as a director. The following persons are deemed, for purposes of Rule
5605(a)(2) to not be independent:
|
(i)
|
Any person that was employed by us within the last 3 years;
|
|
(ii)
|
Any person that accepted, or has an immediate family member that
accepted, compensation from us in excess of $120,000 during any 12 month period within the last 3 years;
|
|
(iii)
|
Any person that is an immediate family member of another person that is,
or was, at any time during the last 3 years, employed as an executive officer of our Company;
|
|
(iv)
|
Any person that is, or has an immediate family member that is, a partner,
controlling shareholder or executive officer of any organization to which we have made, or from which we have received,
payments in excess of the lesser of (A) 5% of the recipients total gross revenues for that year, or (B) $200,000, within
the last 3 years;
|
|
(v)
|
Any person that is, or has an immediate family member that is, an
executive officer of another entity where, at any time during the last 3 years, one of our executive officers served on
the compensation committee of that other entity; and
|
|
(vi)
|
Any person that is, or has an immediate family member that is, a current
partner of our outside auditors or was a partner or employee of our outside auditors during the last 3 years, and
personally worked on our audit during that time.
|
The Company has determined that Gary Childress and
Wayne Moorhouse are “independent” when applying both the definition of independence required under the rules of the TSX
Venture Exchange, and the definition set out in NASDAQ Rule 5605(a)(2). John Theobald is not an independent
director because of his position as our Chief Executive Officer and President, W. Barry Girling is not independent
because he provides consulting services to us and Allen L. Ball is not independent due to his being our controlling
shareholder.
14
Directorships
Certain of the directors of
the Company (or nominees for director) are presently a director in one or more other reporting issuers, as follows:
Directors
|
Other Issuers
|
John Theobald
|
None.
|
Allen L. Ball
|
None
|
W. Barry Girling
|
Silver One Resources Inc., Zinc One
Resources Inc., Plymouth Realty Capital Corp. and SantaCruz Silver Mining Ltd.
|
Gary Childress
|
None.
|
Wayne Moorhouse
|
None.
|
Orientation and
Continuing Education
The Board of Directors
provides an overview of the Company’s business activities, systems and business plan to all new directors. New director
candidates have free access to any of the Company’s records, employees or senior management in order to conduct their
own due diligence and will be briefed on the strategic plans, short, medium and long term corporate objectives, business
risks and mitigation strategies, corporate governance guidelines and existing policies of the Company. The directors are
encouraged to update their skills and knowledge by taking courses and attending professional seminars.
Ethical Business
Conduct
The Board of Directors
believes good corporate governance is an integral component to the success of the Company and to meet responsibilities
to shareholders. Generally, the Board of Directors has found that the fiduciary duties placed on individual directors by
the Company’s governing corporate legislation and the common law and the restrictions placed by applicable corporate
legislation on an individual director’s participation in decisions of the Board of Directors in which the director has
an interest have been sufficient to ensure that the Board of Directors operates independently of management and in the
best interests of the Company.
The Board of Directors is
also responsible for applying governance principles and practices, and tracking development in corporate governance, and
adapting “best practices” to suit the needs of the Company. Certain of the directors of the Company may also be
directors and officers of other companies, and conflicts of interest may arise between their duties. Such conflicts must
be disclosed in accordance with, and are subject to such other procedures and remedies as applicable under Nevada
law.
Assessments
The Board of Directors has
not implemented a process for assessing its effectiveness. As a result of the Company’s small size and the Company’s
stage of development, the Board of Directors considers a formal assessment process to be inappropriate at this time. The
Board of Directors plans to continue evaluating its own effectiveness on an ad hoc basis.
The Board of Directors does
not formally assess the performance or contribution of individual Board members or committee members.
Shareholder Communication with the Board of
Directors
Shareholders desiring to communicate with the Board
of Directors on matters other than director nominations should submit their communication in writing to Matthew
Anderson, Chief Financial Officer, I-Minerals Inc., Suite 880, 580 Hornby Street, Vancouver BC V6C 3B6 and identify
themselves as a shareholder. The Chief Financial Officer will forward all such communication to the Chairperson of
the Board for a determination as to how to proceed.
15
OTHER EXECUTIVE
OFFICERS
In addition to John
Theobald, the following persons are executive officers of the Company:
Matthew Anderson has been our Chief
Financial Officer since July 2011.Mr. Anderson holds a Bachelor of Commerce degree from McGill University and
obtained his Chartered Accountant designation in 2008 while articling at a large accounting firm. Matt is a Managing
Director with Malaspina Consultants Inc., a private company that provides accounting and administrative infrastructure
to junior public companies. He has worked with Malaspina Consultants Inc. since July 2009. He serves or has served
as CFO of a number of junior public companies.
There are no family relationships between Mr. Anderson and any
other director or executive officer. Mr. Anderson is currently not engaged in legal proceedings to which he is a
party adverse to us or in which he has a material interest adverse to us.
COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS
Summary Compensation
Table
The following table sets forth the total
compensation paid to or earned by the Company’s name executive officers, as that term is defined in Item 402(m)(2) of
Regulation S-K of the Exchange Act, (“Named Executive Officers”) as of its fiscal years ended April 30, 2020 and
2019.
SUMMARY
COMPENSATION TABLE
|
Name &
Principal Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Stock Awards
($)
|
Option Awards
($)(3)
|
Non-Equity Incentive Plan
Compen-sation ($)
|
Nonqualified Deferred Compen-sation
Earnings
($)
|
All Other Compen-sation
($)
|
Total
($)
|
John Theobald(1)
|
2020
|
150,000
|
0
|
0
|
0
|
0
|
0
|
0
|
150,000
|
President, CEO & Director
|
2019
|
150,000
|
0
|
0
|
85,090
|
0
|
0
|
0
|
235,090
|
Matthew
Anderson(2)
CFO
|
2020
|
19,883
|
0
|
0
|
0
|
0
|
0
|
0
|
19,883
|
2019
|
20,220
|
0
|
0
|
0
|
0
|
0
|
0
|
20,220
|
Notes:
(1)
|
Mr. John Theobald became President and CEO of the Company in March 2018. Mr.
Theobald has an agreement dated March 1, 2018, pursuant to which he is paid a salary of $12,500 per month.
|
(2)
|
Mr. Anderson is compensated pursuant to the terms of his consulting agreement
dated October 1, 2011, pursuant to which he is paid an hourly rate. Mr. Anderson’s consulting agreement may be
terminated on sixty days’ written notice.
|
(3)
|
The determination of non-cash value of option awards is based upon the grant
date fair value determined using the Black-Scholes Option pricing model.
|
16
Outstanding Equity
Awards at Fiscal Year End Table
The following table
provides information concerning unexercised options for each of our named executive officers, as that term is defined in
Item 402(m)(2) of Regulation S-K as of our fiscal year end of April 30, 2020.
Name and
Principal Position
|
Number of
Securities Underlying Unexercised Options (#) Exercisable
|
Number of Securities Underlying Unexercised Options (#) Unexercisable
|
Equity Incentive
Plan Awards: Number of Securities Underlying Unexercised Unearned Options
|
Option Exercise
Price (CAD$)
|
Option
Expiration Date
|
JOHN THEOBALD
Chief Executive Officer, President and
Director
|
300,000
1,250,000
|
-
1,250,000
|
-
-
|
0.30
0.25
|
07/21/2021
08/09/2023
|
Director Compensation
The following table sets
forth the compensation paid to our directors during our April 30, 2020 fiscal year, other than directors who were also
named executive officers as that term is defined in Item 402(m)(2). Compensation paid to directors who were also named
executive officers during our April 30, 2020 fiscal year is set out in the tables above.
Name
|
Fees Earned or
Paid in Cash
($)
|
Stock
Awards
($)
|
Option
Awards
($)(4)
|
Non-Equity
Incentive Plan Compensation ($)
|
Nonqualified
Deferred Compensation Earnings
($)
|
All Other
Compensation
($)
|
Total
($)
|
Allen L. Ball
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
W. Barry Girling(1)
|
-
|
-
|
-
|
-
|
-
|
96,000
|
96,000
|
Gary Childress(2)
|
13,475
|
-
|
-
|
-
|
-
|
-
|
13,475
|
Wayne Moorhouse(3)
|
16,482
|
-
|
-
|
-
|
-
|
-
|
16,482
|
Notes:
(1)
|
Management and consulting fees of $96,000 were charged by RJG Capital
Corporation, a wholly-owned company of Mr. Girling.
|
(2)
|
Mr. Childress is compensated at a rate of CAD$4,500 per quarter for being
a member of the Audit Committee.
|
(3)
|
Mr. Moorhouse is compensated at a rate of CAD$5,500 per quarter for
acting as Chair of the Audit Committee.
|
(4)
|
The determination of non-cash value of option awards is based upon the
grant date fair value determined using the Black-Scholes Option pricing model.
|
COMPLIANCE WITH SECTION
16(a) OF THE SECURITIES EXCHANGE ACT
Section 16(a) of the
Exchange Act requires the Company’s executive officers and directors, and persons who beneficially own more than ten
percent of the Company’s equity securities, to file reports of ownership and changes in ownership with the Securities
and Exchange Commission. Based on the Company’s review of the copies of such forms received by it, the Company believes
that during the fiscal year ended April 30, 2020 all such filing requirements were complied with other than the
following.
Name and Principal
Position
|
Number of Late
InsiderReports
|
Transactions Not Timely
Reported
|
Known Failures to File a Required
Form
|
Allen L. Ball
Director and 10% Holder
|
None
|
Two
|
Two
|
BV Natural Resources LLC
10% Holder
|
None
|
One
|
One
|
W. Barry Girling
Director
|
None
|
One
|
One
|
17
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Except as disclosed below,
none of the following parties has, during our last two fiscal years, had any material interest, direct or indirect, in
any transaction with us or in any presently proposed transaction that has or will materially affect us, in which the
Company is a participant and the amount involved exceeds the lesser of $120,000 or 1% of the average of the Company’s
total assets for the last two completed fiscal years:
|
(i)
|
Any of our directors or officers;
|
|
(ii)
|
Any person proposed as a nominee for election as a director;
|
|
(iii)
|
Any person who beneficially owns, directly or indirectly, shares carrying
more than 10% of the voting rights attached to our outstanding common shares;
|
|
(iv)
|
Any of our promoters; and
|
|
(v)
|
Any relative or spouse of any of the foregoing persons who has the same
house as such person.
|
Compensation Arrangements
See “Executive Compensation – Summary Compensation
Table” and “Executive Compensation – Director Compensation”.
Indebtedness
As at April 30, 2020, we recorded accounts payable
and accrued liabilities of $199,104 (2019 - $190,480) in connection with amounts owed to our directors, an officer and a
former director. At April 30, 2020, we owed Wayne Moorhouse, Director, $2,876, John Theobald, CEO, $12,702, Barry
Girling, Director, $283, RJG Capital Corporation, a company controlled by Barry Girling, $8,243 and Ball Ventures, LLC,
a company controlled by Allen L. Ball, $175,000. At April 30, 2019, we owed Wayne Moorhouse, Director, $2,980, John
Theobald, CEO and Director, $12,500 and Ball Ventures, LLC, a company controlled by Allen L. Ball, $175,000. All amounts
are non- interest bearing, unsecured, and due on demand.
Loan Agreements with Directors
First, Second and Third Promissory Notes
On September 13, 2013, January 27, 2014 and
December 4, 2014, the Company entered into agreements with BV Lending LLC, a company controlled by Allen L. Ball, a
director of our Company (the “Lender”) pursuant to which $5,787,280 was advanced to the Company in tranches (the “First
Promissory Notes”). On February 18, 2015 and December 1, 2015, the Company entered into agreements with the Lender
pursuant to which $5,457,000 was advanced to the Company in tranches (the “Second Promissory Notes”). On June 1, 2016,
October 25, 2017, January 19, 2018 and March 30, 2018, the Company entered into agreements with the Lender pursuant to
which $4,045,000 was advanced to the Company in tranches (the “Third Promissory Notes”). In addition, the First
Promissory Notes and the Second Promissory Notes were amended and combined with the Third Promissory Notes with a
modified maturity date of March 31, 2019.
On October 25, 2017, the Company entered into an
amending agreement with the Lender to extend the maturity date of the outstanding Promissory Notes from December 2, 2017
to March 31, 2019. In consideration for the extension, the Company agreed to pay a 1% extension fee in the amount of
$168,152 with the fee deemed as advances (not subject to bonus shares or bonus warrants). On March 27, 2019, an amending
agreement was entered into extending the maturity date of the Promissory Notes from March 31, 2019 to June 30, 2019 for
no consideration. On June 28, 2019, the Third Promissory Notes maturity date was extended to October 31, 2019. On
October 25, 2019, the Company entered into an amending agreement with the Lender extending the maturity date of the
Third Promissory Notes, for no consideration to the earlier of (i) June 30, 2020 and (ii) 60 days after a
pre-feasibility study has been filed on SEDAR. Subsequent to April 30, 2020, the promissory notes were extended to
December 15, 2020 for no consideration.
18
Certain conditions
may result in early repayment including immediate repayment in the event a person currently not related to the Company
acquires more than 40% of the outstanding common shares of the Company.
The Third Promissory Notes bear interest at the
rate of 12% per annum and during the year ended April 30, 2020, the Company recorded interest of $2,720,332 (2019 -
$2,409,966), of which $nil was capitalized to mineral property interest (2019 - $207,266) and $2,720,332 was expensed
(2019 - $2,202,700). Interest is payable semi-annually as calculated on May 31st and November 30th of each year.
Interest is to be paid either in cash, in common shares or deemed an advance of principal at the option of the Lender. A
5% late payment penalty may apply if payment is not paid within ten days after the due date. During the year ended April
30, 2020, the Lender elected to have interest payable from December 1, 2018 to November 30, 2019 of $2,584,313 deemed as
advances.
The aggregate finance fees (bonus shares and bonus
warrants) are recorded against the promissory notes balance and are being amortized to the Statement of Loss over the
life of the promissory notes using the effective interest method. The accretion expense in respect of the debt discount
recorded on the issuance of bonus shares and warrants totalled $nil for the year ended April 30, 2020 (2019 - $227,968).
The unamortized debt discount as at April 30, 2020 is $nil (2019 – $nil).
Fifth Promissory Notes
On September 11, 2018, the Company entered into a
Loan Agreement the Lender pursuant to which up to $2,500,000 will be advanced to the Company in tranches (the “Fifth
Promissory Notes”). As at April 30, 2020, the Company had received $2,500,000 in advances pursuant to the Fifth
Promissory Notes. The Fifth Promissory Notes were due on December 31, 2019. On October 25, 2019, the Company entered
into an amending agreement with the Lender extending the maturity date for both notes, for no consideration, to the
earlier of (i) June 30, 2020 and (ii) 60 days after a pre-feasibility study has been filed on SEDAR. Subsequent to April
30, 2020, the promissory notes were extended to December 15, 2020 for no consideration.
The Fifth Promissory Notes bear interest at the
rate of 14% per annum payable semi-annually as calculated on May 31st and November 30th of each year. Interest is to be
paid either in cash, in common shares or deemed an advance of principal at the option of the Lender. During the year
ended April 30, 2020 the Company recorded interest of $354,031 (2019 - $102,686). The lender elected to have interest
payable of $276,638 from December 1, 2018 to November 30, 2019 deemed as advances.
The Company and the Lender agreed that the Lender
is to receive bonus shares equal to 6% of each loan tranche advanced under the Fifth Promissory Notes divided by the
Company’s common share market price up to a maximum of 1,054,097 bonus shares. During the year ended April 30, 2020, the
Company issued 1,054,097 bonus shares to the Lender at the fair value of $106,858. The fair value of the bonus shares
was determined by reference to the trading price of the Company’s common shares on the date the advances were received.
The aggregate finance fees (bonus shares) are
recorded against the promissory notes balance and are being amortized to the Statement of Loss over the life of the
promissory notes using the effective interest method. The accretion expense in respect of the debt discount recorded on
the issuance of bonus shares totalled $60,348 for the year ended April 30, 2020 (2019 - $46,511). The unamortized debt
discount as at April 30, 2020 is $nil (2019 – $60,348).
Sixth Promissory Note
On October 25, 2019, the Company entered into a
Loan Agreement with the Lender pursuant to which up to $700,000 will be advanced to the Company in tranches (the “Sixth
Promissory Notes”). On January 20, 2020, the Company entered into an amending agreement whereby the Lender agreed to
advance an additional $600,000 under the same terms as the Sixth Promissory Notes. As at April 30, 2020, the Company had
received $1,300,000 in advances pursuant to the Sixth Promissory Notes. Subsequent to April 30, 2020, the Company
entered into an amending agreement whereby the Lender agreed to advance an additional $1,200,000 in advances pursuant to
the Sixth Promissory Notes. Subsequent to April 30, 2020, the Company received $120,000 pursuant to the Sixth Promissory
Notes.
19
The Sixth Promissory
Notes were due on the earlier of (i) June 30, 2020 and (ii) 60 days after a pre-feasibility study has been filed on
SEDAR. Subsequent to April 30, 2020, the promissory notes were extended to December 15, 2020 for no
consideration.
The Sixth Promissory Notes bear interest at the
rate of 14% per annum and during the year ended April 30, 2020, the Company recorded interest of $52,461 (2019 - $nil).
Interest is payable semi-annually as calculated on May 31st and November 30th of each year. Interest is to be paid
either in cash, in common shares or deemed an advance of principal at the option of the Lender. A 5% late payment
penalty may apply if payment is not paid within ten days after the due date. During the year ended April 30, 2020, the
Lender elected to have interest payable from November 1, 2019 to November 30, 2019 of $2,781 deemed as advances.
The Third Promissory Notes, the Fifth Promissory
Notes and the Sixth Promissory Notes are collateralized by the Company’s Helmer-Bovill Property. The promissory notes
mature on December 15, 2020. As at April 30, 2020, the aggregate principal outstanding on all promissory notes was
$27,589,617 as well as accrued interest payable of $1,386,571.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information
concerning the number of shares of the Company’s common shares owned beneficially as of November 2, 2020 by: (i) each
person (including any group) known to the Company to own more than five percent (5%) of any class of the voting
securities, (ii) each of the Company’s directors and each of the named executive officers, and (iii) officers and
directors as a group. Unless otherwise indicated, the shareholders listed possess sole voting and investment power with
respect to the shares shown.
Title Of Class
|
Name And Address
Of Beneficial Owner
|
Amount And Nature Of
Beneficial
Ownership
|
Percentage Of Common
Shares(1)
|
DIRECTORS AND OFFICERS
|
Common Shares
|
JOHN THEOBALD
Chief Executive Officer, President and
Director
|
1,550,000
Common Shares(2)
Direct
|
1.6%
|
Common Shares
|
MATTHEW ANDERSON
Chief Financial Officer
|
150,000
Common Shares(3)
Direct
|
0.2%
|
Common Shares
|
ALLEN L. BALL
Director
|
36,648,896
Common Shares(4)
Direct and Indirect
|
39.1%
|
Common Shares
|
W. BARRY GIRLING
Director
|
1,723,007
Common Shares(5)
Direct and Indirect
|
1.8%
|
Common Shares
|
GARY CHILDRESS
Director
|
nil
Common Shares
Direct
|
0.0%
|
Common Shares
|
WAYNE MOORHOUSE
Director
|
nil
Common Shares
Direct
|
0.0%
|
|
All Officers and Directors as a Group
(6 persons)
|
40,071,903
Common Shares
|
42.7%
|
HOLDERS OF MORE
THAN 5% OF THE COMPANY’S COMMON SHARES
|
Common Shares
|
ALLEN L. BALL
6465 South 5th West,
Idaho Falls, Idaho 83404
|
36,648,896
Common Shares(4)
Direct and Indirect
|
39.1%
|
20
Notes:
(1)
|
Under Rule 13d-3, a beneficial owner of a security includes any person
who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares:
(i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which
includes the power to dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned
by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In
addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for
example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing
the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares
beneficially owned by such person (and only such person) by reason of these acquisition rights. As a result, the
percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person’s actual
ownership or voting power with respect to the number of our shares actually outstanding on July 28, 2020. As of July 28,
2020, there were 93,730,212 common shares issued and outstanding.
|
(2)
|
The number of shares listed as beneficially owned by Mr. Theobald
consists of (i) an option to purchase 300,000 common shares at a price of CAD$0.30 per share until July 21, 2021 and
(ii) an option to purchase 1,250,000 common shares at a price of CAD$0.25 per share until August 9, 2023.
|
(3)
|
The number of shares listed as beneficially owned by Mr. Anderson
consists of 150,000 common shares held directly by Mr. Anderson.
|
(4)
|
The number of shares listed as beneficially owned by Mr. Ball consists
of: (i) 250,500 common shares held directly by Mr. Ball, (ii) 1,382,500 common shares through family trusts and (iii)
35,015,896 common shares held by BV Naturally Resources LLC.
|
(5)
|
The number of shares listed as beneficially owned by Mr. Girling consists
of 1,723,007 common shares.
|
WHERE
YOU CAN FIND MORE INFORMATION
The Company is subject to the
informational requirements of the Securities Exchange Act of 1934, as amended. The Company files reports, proxy
statements and other information with the SEC. You may read and copy these reports, proxy statements and other
information at the SEC’s Public Reference Section of the SEC, Room 1580, 100 F Street NE, Washington D.C. 20549.
You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The
SEC also maintains an Internet website, located at www.sec.gov that contains reports, proxy statements and other
information regarding companies and individuals that file electronically with the SEC.
Our Annual Report on Form 10-K for the
fiscal year ended April 30, 2020 accompanies this Proxy Statement but does not constitute a part of the proxy soliciting
material. A copy of the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2019, including
financial statements but without exhibits, is available without charge to any person whose vote is solicited by this
proxy upon written request to I-Minerals Inc., Suite 880, 580 Hornby Street, Vancouver, British Columbia, Canada V6C
3B6, Attention: Matthew Anderson, Chief Financial Officer. Copies also may also be obtained through the SEC’s web
site at www.sec.gov. Our website is located at http://www.imineralsinc.com.
|
|
BY ORDER OF THE BOARD OF DIRECTORS OF I-MINERALS
INC.
|
|
|
|
Date: November 10, 2020
|
|
|
|
|
|
|
|
/s/ John Theobald
|
|
|
John Theobald
Chief Executive Officer, President and
Director
|
21
Sch-14A-2019AGM.v1
22
APPENDIX “A”
I-MINERALS INC.
(the “Company”)
INCENTIVE STOCK OPTION PLAN
(the "Plan")
1. Purpose of the Plan
The purpose of the Plan is to assist the Corporation in
attracting, retaining and motivating "Directors", "Employees" and "Consultants" of the Corporation (as those terms are
defined in TSX Venture Exchange Policy 4.4, and which terms are hereinafter collectively referred to as "Directors,
Employees and Consultants") and any of its subsidiaries and to closely align the personal interests of such Directors,
Employees and Consultants with those of the shareholders by providing them with the opportunity, through options, to
acquire common shares in the capital of the Corporation.
2. Implementation
The Plan and the grant and exercise of any options under
the Plan are subject to compliance with the applicable requirements of each stock exchange ("exchanges") on which the
shares of the Corporation are listed at the time of the grant of any options under the Plan and of any governmental
authority or regulatory body to which the Corporation is subject.
3. Administration
The Plan shall be administered by the Board of Directors
of the Corporation which shall, without limitation, subject to the approval of the exchanges, have full and final
authority in its discretion, but subject to the express provisions of the Plan, to interpret the Plan, to prescribe,
amend and rescind rules and regulations relating to it and to make all other determinations deemed necessary or
advisable for the administration of the Plan. The Board of Directors may delegate any or all of its authority with
respect to the administration of the Plan and any or all of the rights, powers and discretions with respect to the Plan
granted to it hereunder to such committee of directors of the Corporation as the Board of Directors may designate and
upon such delegation such committee of directors, as well as the Board of Directors, shall be entitled to exercise any
or all of such authority, rights, powers and discretions with respect to the Plan. When used hereafter in the
Plan, "Board of Directors" shall be deemed to include a committee of directors acting on behalf of the Board of
Directors.
4. Shares Issuable Under the Plan
Subject to the requirements of the TSX Venture
Exchange:
(a)
|
the aggregate number of shares (“Optioned Shares”) that may be issuable
pursuant to options granted under the Plan will not exceed 10% of the number of issued shares of the Corporation at the
time of the granting of options under the Plan;
|
(b)
|
no more than 5% of the issued shares of the Corporation, calculated at the
date the option is granted, may be granted to any one Optionee (as hereinafter defined) in any 12 month period;
|
(c)
|
no more than 2% of the issued shares of the Corporation, calculated at the
date the option is granted, may be granted to any one Consultant in any 12 month period;
|
(d)
|
no more than an aggregate of 2% of the issued shares of the Corporation,
calculated at the date the option is granted, may be granted to Persons (as that term is defined in TSX Venture Exchange
Policy 1.1) employed to provide "Investor Relations Activities" (as that term is defined in TSX Venture Exchange Policy
1.1) in any 12 month period.
|
23
5. Eligibility
5.01
General
|
Options may be granted under the Plan to Directors, Employees and Consultants of
the Corporation and any of its subsidiaries (collectively the "Optionees" and individually an "Optionee"). Subject
to the provisions of the Plan, the total number of Optioned Shares to be made available under the Plan and to each
Optionee, the time or times and price or prices at which options shall be granted, the time or times at which such
options are exercisable, and any conditions or restrictions on the exercise of options, shall be in the full and final
discretion of the Board of Directors.
|
5.02 Options
Granted to Employees, Consultants or Management Company Employees
|
The Corporation represents that, in the event it wishes to grant options under the
Plan to Employees, Consultants or "Management Company Employees" (as that term is defined in TSX Venture Exchange Policy
4.4), it will only grant such options to Optionees who are bona fide Employees, Consultants or Management Company
Employees, as the case may be.
|
6. Terms and Conditions
|
All options under the Plan shall be granted upon and subject to the terms and
conditions hereinafter set forth.
|
6.01
Exercise price
|
The exercise price to each Optionee for each Optioned Share shall be determined by
the Board of Directors but shall not, in any event, be less than the "Discounted Market Price" of the Corporation's
common shares as traded on the TSX Venture Exchange (as that term is defined in TSX Venture Exchange Policy 1.1), or
such other price as may be agreed to by the Corporation and accepted by the TSX Venture Exchange; provided that
the exercise price for each Optioned Share in respect of options granted within 90 days of a "Distribution" by a
"Prospectus" (as those terms are defined in TSX Venture Exchange Policy 1.1) shall not be less than the greater of the
Discounted Market Price and the price per share paid by public investors for listed shares of the Corporation under the
Distribution.
|
6.02
Reduction in the Exercise Price of Options Granted to Insiders
|
In the event the Corporation wishes to reduce the exercise price of any options
held by "Insiders" (as that term is defined in TSX Venture Exchange Policy 1.1) of the Corporation at the time of the
proposed reduction, the approval of the disinterested Shareholders of the Corporation will be required prior to the
exercise of any such options at the reduced exercise price.
|
6.03 Option Agreement
|
All options shall be granted under the Plan by means of an agreement (the "Option
Agreement") between the Corporation and each Optionee in the form attached hereto as Schedule "A" or such other form as
may be approved by the Board of Directors, such approval to be conclusively evidenced by the execution of the Option
Agreement by any one director or officer of the Corporation, or otherwise as determined by the Board of Directors.
|
6.04 Length of
Grant
|
Subject to sections 6.10, 6.11, 6.12, 6.13 and 6.14 all options granted under the
Plan shall expire not later than that date which is 5 years from the date such options were granted.
|
6.05
Non-Assignability of Options
|
An option granted under the Plan shall not be transferable or assignable (whether
absolutely or by way of mortgage, pledge or other charge) by an Optionee other than by will or other testamentary
instrument or the laws of succession and may be exercisable during the lifetime of the Optionee only by such
Optionee.
|
24
6.06 Vesting Schedule for Options Granted to Consultants performing Investor
Relations Activities
|
An Optionee who is a Consultant performing Investor Relations Activities who is
granted an option under the Plan will become vested with the right to exercise one-quarter (1/4) of the option upon the
conclusion of every 3 months subsequent to the date of the grant of the option, such that that Optionee will be vested
with the right to exercise one hundred percent (100%) of his option upon the conclusion of 12 months from the date of
the grant of the option. (By way of example, in the event that Optionee did not exercise one-quarter (1/4) of his
option at the conclusion of 3 months from the date of the grant of the option, he would be entitled to exercise one-half
(1/2) of his option upon the conclusion of 6 months from the date of the grant of the option.)
|
6.07 Right to
Postpone Exercise
|
Each Optionee, upon becoming entitled to exercise the option in respect of any
Optioned Shares in accordance with the Option Agreement, shall thereafter be entitled to exercise the option to purchase
such Optioned Shares at any time prior to the expiration or other termination of the Option Agreement or the option
rights granted thereunder in accordance with such agreement.
|
6.08 Exercise
and Payment
|
Any option granted under the Plan may be exercised by an Optionee or, if
applicable, the legal representatives of an Optionee, giving notice to the Corporation specifying the number of shares
in respect of which such option is being exercised, accompanied by payment (by cash or certified cheque payable to the
Corporation) of the entire exercise price (determined in accordance with the Option Agreement) for the number of shares
specified in the notice. Upon any such exercise of an option by an Optionee the Corporation shall cause the
transfer agent and registrar of shares of the Corporation to promptly deliver to such Optionee or the legal
representatives of such Optionee, as the case may be, a share certificate in the name of such Optionee or the legal
representatives of such Optionee, as the case may be, representing the number of shares specified in the notice.
|
6.09 Rights of
Optionees
|
The Optionees shall have no rights whatsoever as shareholders in respect of any of
the Optioned Shares (including, without limitation, voting rights or any right to receive dividends, warrants or rights
under any rights offering) other than Optioned Shares in respect of which Optionees have exercised their option to
purchase and which have been issued by the Corporation.
|
6.10 Third Party
Offer
|
If at any time when an option granted under the Plan remains unexercised with
respect to any common shares, an offer to purchase all of the common shares of the Corporation is made by a third party,
the Corporation may upon giving each Optionee written notice to that effect, require the acceleration of the time for
the exercise of the option rights granted under the Plan and of the time for the fulfilment of any conditions or
restrictions on such exercise.
|
6.11 Alterations
in Shares
|
In the event of a stock dividend, subdivision, redivision, consolidation, share
reclassification (other than pursuant to the Plan), amalgamation, merger, corporate arrangement, reorganization,
liquidation or the like of or by the Corporation, the Board of Directors may make such adjustment, if any, of the number
of Optioned Shares, or of the exercise price, or both, as it shall deem appropriate to give proper effect to such
event. If because of a proposed merger, amalgamation or other corporate arrangement or reorganization, the
exchange or replacement of shares in the Corporation for those in another corporation is imminent, the Board of
Directors may, in a fair and equitable manner, determine the manner in which all unexercised option rights granted under
the Plan shall be treated including, for example, requiring the acceleration of the time for the exercise of such rights
by the Optionees and of the time for the fulfilment of any conditions or restrictions on such exercise. All
determinations of the Board of Directors under this section 6.11 shall be full and final.
|
25
6.12 Termination for Cause
|
Subject to section 6.13, if an Optionee ceases to be either a Director, Employee,
Consultant or Management Company Employee of the Corporation or of any of its subsidiaries as a result of having been
dismissed from any such position for cause, all unexercised option rights of that Optionee under the Plan shall
immediately become terminated and shall lapse, notwithstanding the original term of the option granted to such Optionee
under the Plan.
|
6.13 Termination
Other Than For Cause
|
If an Optionee ceases to be either a Director, Employee, Consultant or Management
Company Employee of the Corporation or any of its subsidiaries for any reason other than as a result of having been
dismissed for cause as provided in section 6.12 or as a result of the Optionee's death, such Optionee shall have the
right for a period of 90 days (or until the normal expiry date of the option rights of such Optionee if earlier) from
the date of ceasing to be either a Director, Employee, Consultant or Management Company Employee to exercise the option
under the Plan with respect to all Optioned Shares of such Optionee to the extent they were exercisable on the date of
ceasing to be either a Director, Employee, Consultant or Management Company Employee. Upon the expiration of such
90 day period all unexercised option rights of that Optionee shall immediately become terminated and shall lapse
notwithstanding the original term of the option granted to such Optionee under the Plan.
|
|
If an Optionee engaged in performing Investor Relations Activities to the
Corporation ceases to be employed in performing such Investor Relations Activities, such Optionee shall have the right
for a period of 30 days (or until the normal expiry date of the option rights of such Optionee if earlier) from the date
of ceasing to perform such Investor Relations Activities to exercise the option under the Plan with respect to all
Optioned Shares of such Optionee to the extent there were exercisable on the date of ceasing to perform such Investor
Relations Activities. Upon the expiration of such 30-day period all unexercised option rights of that Optionee
shall immediately become terminated and shall lapse notwithstanding the original term of the option granted to such
Optionee under the Plan.
|
6.14 Deceased Optionee
|
In the event of the death of any Optionee, the legal representatives of the
deceased Optionee shall have the right for a period of one year (or until the normal expiry date of the option rights of
such Optionee if earlier) from the date of death of the deceased Optionee to exercise the deceased Optionee's option
with respect to all of the Optioned Shares of the deceased Optionee to the extent they were exercisable on the date of
death. Upon the expiration of such period all unexercised option rights of the deceased Optionee shall immediately
become terminated and shall lapse notwithstanding the original term of the option granted to the deceased Optionee under
the Plan.
|
7. Amendment and Discontinuance of Plan
|
Subject to the acceptance of the exchanges, the Board of Directors may from time to
time amend or revise the terms of the Plan or may discontinue the Plan at any time, provided that no such action may in
any manner adversely affect the rights under any options earlier granted to an Optionee under the Plan without the
consent of that Optionee.
|
8. No Further Rights
|
Nothing contained in the Plan nor in any option granted hereunder shall give any
Optionee or any other person any interest or title in or to any shares of the Corporation or any rights as a shareholder
of the Corporation or any other legal or equitable right against the Corporation whatsoever other than as set forth in
the Plan and pursuant to the exercise of any option, nor shall it confer upon the Optionees any right to continue as a
Director, Employee or Consultant of the Corporation or of any of its subsidiaries.
|
26
9. Compliance with Laws
The obligations of the Corporation to sell shares and
deliver share certificates under the Plan are subject to such compliance by the Corporation and the Optionees as the
Corporation deems necessary or advisable with all applicable corporate and securities laws, rules and regulations.
27
SCHEDULE “A”
I-Minerals Inc
INCENTIVE STOCK OPTION PLAN
OPTION AGREEMENT
OPTION EXERCISE FORM
Without prior written approval of the TSX
Venture Exchange and compliance with all applicable securities legislation, the securities represented by this agreement
and any securities issued upon exercise thereof may not be sold, transferred, hypothecated or otherwise traded on or
through the facilities of the TSX Venture Exchange or otherwise in Canada or to or for the benefit of a Canadian
resident until ♦ ♦, ♦ [four months and one day after the Grant Date].
This Option Agreement is entered into between I-Minerals
Inc. (the “Company”) and the Optionee named below pursuant to the Company’s Incentive Stock Option Plan (the
“Plan”), and confirms that:
1.
|
on ♦ ♦, ♦ (the “Grant Date”);
|
3.
|
was granted the option (the “Option”) to purchase ♦ Common Shares (the
“Option Shares”) of the Company;
|
4.
|
for the price (the “Option Price”) of $♦ per share;
|
5.
|
which shall be exercisable as fully Vested as follows: ♦;
|
6.
|
terminating on ♦ ♦, ♦ (the “Expiry Date”);
|
all on the terms and subject to the conditions set
out in the Plan. For greater certainty, once Option Shares have been granted, they continue to be exercisable
until the termination or cancellation thereof as provided in this Option Agreement and the Plan.
By signing this Option Agreement, the Optionee
acknowledges that the Optionee has read and understands the Plan and agrees to the terms and conditions of the Plan and
this Option Agreement.
By signing this Option Agreement, the Optionee also acknowledges
that, as required by the Canada Revenue Agency, the Optionee will be required to provide the Company with the
following payments:
|
(a)
|
a payment for the number of Option Shares being exercised at the Option
Price;
|
|
(b)
|
a payment equal to the income taxes due on the net stock option benefit,
which amount is comprised of the full taxable employment benefit, less the 50% stock option benefit deduction to which
the Optionee may be entitled; and
|
|
(c)
|
a payment equal to the Canada Pension Plan contribution due in respect of
the full taxable employment benefit (without taking into consideration the 50% deduction) to be received by the
Optionee through such exercise, notwithstanding that the Optionee may have already contributed the maximum amount of
Canada Pension Plan contributions for the calendar year in which all or any portion of the Option is exercised, unless
the Optionee provides the Company with a copy of the Election to stop paying into the Canada Pension Plan that has been
filed with the Canada Revenue Agency, or the Optionee is over the age of 69.
|
28
IN WITNESS WHEREOF the parties hereto have
executed this Option Agreement as of the ♦ day of ♦, ♦.
♦
(the Optionee)
|
I-Minerals Inc.
Per:
Authorized Signatory
|
29
APPENDIX
“B”
I-MINERALS INC.
(the “Company”)
AUDIT COMMITTEE CHARTER
PURPOSE OF THE COMMITTEE
The purpose of the Audit Committee (the
“Committee”) of the Board of Directors (the “Board”) of the Company is to provide an open avenue of communication
between management, the Company’s independent auditor and the Board and to assist the Board in its oversight of:
|
•
|
the integrity, adequacy and timeliness of the Company’s financial
reporting and disclosure practices;
|
|
•
|
the Company’s compliance with legal and regulatory requirements
related to financial reporting; and
|
|
•
|
the independence and performance of the Company’s independent
auditor.
|
The Committee shall also perform any other
activities consistent with this Charter, the Company’s articles and governing laws as the Committee or Board deems
necessary or appropriate.
The Committee shall consist of at least three
directors. Members of the Committee shall be appointed by the Board and may be removed by the Board in its discretion.
The members of the Committee shall elect a Chairman from among their number. A majority of the members of the Committee
must not be officers or employees of the Company or of an affiliate of the Company. The quorum for a meeting of the
Committee is a majority of the members who are not officers or employees of the Company or of an affiliate of the
Company. With the exception of the foregoing quorum requirement, the Committee may determine its own procedures.
The Committee’s role is one of oversight.
Management is responsible for preparing the Company’s financial statements and other financial information and for the
fair presentation of the information set forth in the financial statements in accordance with generally accepted
accounting principles (“GAAP”). Management is also responsible for establishing internal controls and procedures and for
maintaining the appropriate accounting and financial reporting principles and policies designed to assure compliance
with accounting standards and all applicable laws and regulations.
The independent auditor’s responsibility is to
audit the Company’s financial statements and provide its opinion, based on its audit conducted in accordance with
generally accepted auditing standards, that the financial statements present fairly, in all material respects, the
financial position, results of operations and cash flows of the Company in accordance with GAAP.
The Committee is responsible for recommending to
the Board the independent auditor to be nominated for the purpose of auditing the Company’s financial statements,
preparing or issuing an auditor’s report or performing other audit, review or attest services for the Company, and for
reviewing and recommending the compensation of the independent auditor. The Committee is also directly responsible for
the evaluation of and oversight of the work of the independent auditor. The independent auditor shall report directly to
the Committee.
AUTHORITY AND RESPONSIBILITIES
In addition to the foregoing, in performing its
oversight responsibilities the Committee shall:
1.
|
Monitor the adequacy of this Charter and recommend any proposed changes
to the Board.
|
2.
|
Review the appointments of the Company’s Chief Financial Officer and
any other key financial executives involved in the financial reporting process.
|
30
3.
|
Review with management and the independent auditor the adequacy and
effectiveness of the Company’s accounting and financial controls and the adequacy and timeliness of its financial
reporting processes.
|
4.
|
Review with management and the independent auditor the annual financial
statements and related documents and review with management the unaudited quarterly financial statements and related
documents, prior to filing or distribution, including matters required to be reviewed under applicable legal or
regulatory requirements.
|
5.
|
Where appropriate and prior to release, review with management any news
releases that disclose annual or interim financial results or contain other significant financial information that has
not previously been released to the public.
|
6.
|
Review the Company’s financial reporting and accounting standards and
principles and significant changes in such standards or principles or in their application, including key accounting
decisions affecting the financial statements, alternatives thereto and the rationale for decisions made.
|
7.
|
Review the quality and appropriateness of the accounting policies and
the clarity of financial information and disclosure practices adopted by the Company, including consideration of the
independent auditor’s judgment about the quality and appropriateness of the Company’s accounting policies. This review
may include discussions with the independent auditor without the presence of management.
|
8.
|
Review with management and the independent auditor significant related
party transactions and potential conflicts of interest.
|
9.
|
Pre-approve all non-audit services to be provided to the Company by the
independent auditor.
|
10.
|
Monitor the independence of the independent auditor by reviewing all
relationships between the independent auditor and the Company and all non-audit work performed for the Company by the
independent auditor.
|
11.
|
Establish and review the Company’s procedures for the:
|
|
•
|
receipt, retention and treatment of complaints regarding accounting,
financial disclosure, internal controls or auditing matters; and
|
|
•
|
confidential, anonymous submission by employees regarding
questionable accounting, auditing and financial reporting and disclosure matters.
|
12.
|
Conduct or authorize investigations into any matters that the Committee
believes is within the scope of its responsibilities. The Committee has the authority to retain independent counsel,
accountants or other advisors to assist it, as it considers necessary, to carry out its duties, and to set and pay the
compensation of such advisors at the expense of the Company.
|
13.
|
Perform such other functions and exercise such other powers as are
prescribed from time to time for the audit committee of a reporting company in Parts 2 and 4 of Multilateral Instrument
52-110 of the Canadian Securities Administrators, the Business Corporations Act (Canada) and the by-laws of the
Company.
|
31
SCHEDULE
“B”
FORM OF CONFIRMATION OF ATTENDANCE TO THE SPECIAL
MEETING BY TELE-CONFERENCE
I-Minerals Inc.
(the “Company”)
Name of shareholder - printed
Number of Company shares held
Shareholders Telephone Number
Signature of shareholder
Signed: _______________________, 2020
Please fax to (604) 687 6650 Attn: Thomas Moggan; or email to
reception@stockslaw.com.
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