Highland Copper announces closing of silver royalty option
LONGUEUIL, Quebec. (WLUC) - Highland Copper Company Inc. is pleased to announce that it has entered an agreement pursuant to which Osisko Gold Royalties Ltd has exercised a portion of its pre-existing option to acquire a royalty on future production of silver from the Copperwood and White Pine projects.
Under 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 a total consideration of U.S. $26 million.
Pursuant to the 2021 Osisko Agreement, which modified the terms and conditions of the exercise of the option by Osisko, the Company has received an initial payment of U.S. $3 million in consideration for which the company has granted Osisko a 3/26th net smelter return royalty on future silver production from the Copperwood Project.
Upon completion of the acquisition of the White Pine Project, Highland will grant to Osisko a 3/26th net smelter return royalty on future silver production from the White Pine Project.
Osisko has the option to acquire the remaining 23/26th net smelter return royalty on all silver produced from the Copperwood and White Pine projects by paying an additional U.S. $23 million to Highland within 60 days following the delivery of a feasibility study on the White Pine Project.
Of the initial payment, U.S. $1.68 million is being deposited for the benefit of the Michigan Department of Environment, Great Lakes, and Energy as financial assurance for the performance of environmental obligations associated with the remediation and closure plan of the historical White Pine mine site. The balance of U.S. $1.32 million will be used by Highland for general corporate purposes.
The final closing of the acquisition of the White Pine Project from Copper Range Company, a wholly owned subsidiary of First Quantum Minerals Ltd., is subject to certain conditions, including the posting of the above-mentioned financial assurance with EGLE. All conditions have been met and the company has notified 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 closing.
Closing is expected to occur as soon as possible in July.
The Company is also continuing discussions with various parties to conclude transactions that would settle the balance of its working capital deficiency.
Highland Copper Company Inc. is a Canadian company focused on exploring and developing copper projects in the Upper Peninsula of Michigan, U.S.A. Information about the Company is available on SEDAR at www.sedar.com and on the Company’s website at www.highlandcopper.com.
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