Highland Copper announces the closing of the Silver Royalty option
LONGUEUIL, Quebec, July 05, 2021 (GLOBE NEWSWIRE) – Highland Copper Company Inc. (TSXV: HI, OTCQB: HDRSF) (the “Company” or “Highland”) is pleased to announce that it has entered into an agreement ( the “Osisko 2021 Agreement“) Under which Osisko Gold Royalties Ltd (“Osisko) Exercised part of its pre-existing option to acquire a royalty on future silver production from the Copperwood and White Pine projects.
Pursuant to the governance and financing agreement between Osisko and Highland, dated December 15, 2014, Highland had granted Osisko the option to purchase 100% of future silver production from Copperwood and White Pine for consideration. total of US $ 26 million. Pursuant to the Osisko 2021 Agreement, which amended the terms and conditions of the exercise of the option by Osisko, the Company received an upfront payment of US $ 3 million (the “Initial payment”) In return for which the Company granted Osisko a 3/26e (~ 11.5%) net smelter return royalty on future silver production from the Copperwood project. Upon completion of the White Pine acquisition, Highland will grant Osisko a 3/26e (~ 11.5%) net smelter return royalty on future silver production from the White Pine project. Osisko has the option to acquire the remaining 23/26e a net smelter royalty on all silver produced from the Copperwood and White Pine projects by paying an additional US $ 23 million to Highland within 60 days of delivery of a feasibility study on the White Pine project.
Of the upfront payment, US $ 1.68 million is deposited to the Michigan Department of the Environment, Great Lakes and Energy (“EGLE) As a financial guarantee for the fulfillment of the environmental obligations associated with the plan to clean up and close the historic White Pine mine site. The balance of US $ 1.32 million will be used by Highland for general corporate purposes.
The definitive closing of the acquisition of the White Pine project from Copper Range Company (“CRC), A wholly owned subsidiary of First Quantum Minerals Ltd., is subject to certain conditions, including the publication of the above financial guarantee with EGLE. All the conditions have been met and the Company has informed CRC that it is in a position to close the transaction. The Company is working diligently with CRC and EGLE to complete the documentation required for the final close. The closure is expected to take place as soon as possible in July.
The Company is also continuing discussions with various parties in order to conclude transactions that would settle its insufficient working capital balance.
Certain statements in this press release constitute forward-looking information under the provisions of Canadian securities laws, including statements about plans to complete the acquisition of the White Pine Project and plans to complete one or more transactions for resolve its insufficient working capital. There can be no assurance that the White Pine Acquisition and other transactions to resolve its working capital shortfall will be completed soon or not at all. The information contained in this document reflects the views of Highland as of the date of this press release. Forward-looking information is based on assumptions and, by its nature, is subject to risks and uncertainties which may cause actual future events to differ materially from those anticipated. Given the Company’s financial condition and the state of the financial markets for a company such as Highland, there can be no assurance that additional funds will be available or available on terms acceptable to the Company to settle its working capital deficit. . The Company does not intend and assumes no obligation to update forward-looking information, except as required by law. Therefore, readers are advised not to place undue reliance on forward-looking information..
Highland Copper Company Inc. is a Canadian company focused on the exploration and development of copper projects in the Upper Peninsula of Michigan, United States. Information on the Company is available on SEDAR at www.sedar.com and on the Company’s website at www.highlandcopper.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information, please contact:
Denis Miville-Deschênes, President and Chief Executive Officer
Email: [email protected]