Apr 22 2015
Highland Copper Company Inc. ("Highland" or the "Company") is pleased to announce that it has entered into an agreement to lease certain mineral rights located in White Pine, Michigan from a private Michigan limited liability corporation that is at arm's length to Highland.
The mineral lease is for 20 years, with an option for an additional 5 years. Payment at closing will consist of US$225,000 in cash and the issuance of such amount of common shares of Highland as will equal US$400,000 divided by the 20‐day volume weighted average trading price of Highland as of the day prior to closing. Additional cash payments will be payable on the first and second anniversaries of closing. Annual rent will also be payable on each anniversary of the lease. Upon commencement of production, Highland will have to pay a sliding scale royalty on copper and silver production from the leased mineral rights with a base royalty of 2% for copper and 2.5% for silver. The Company has an option to repurchase 50% of the royalties. Highland may terminate the lease at any time upon a 30 day notice. Closing of the transaction is expected to occur on or about April 24, 2015, subject to receipt of acceptance by the TSX Venture Exchange.
The leased mineral rights cover an area of approximately 1816 acres. In anticipation of the closing of the White Pine acquisition expected to occur by the end of 2015 (see news release of May 13, 2014), the Company is pleased to have secured these mineral rights, which are located within the White Pine North project area but do not belong to the owner of the former White Pine mine.
Corporate Update
Highland has completed its previously announced private placement financing raising a total of $7.6 million. As previously announced, a total of 30,410,746 common share and 15,205,373 share purchase warrants were issued in three tranches. Each warrant entitles the holder to purchase one additional common share for a period of 18 months from the date of issuance, at $0.50 per share. The Company has 127,377,491 common shares issued and outstanding. A cash finder's fee of up to 5% of the proceeds was paid to certain finders in accordance with the TSXV policies. All securities sold under to the private placement are subject to a hold period of four months and one day from the date of issuance.
Highland is a Canadian exploration company focused on exploring and developing copper projects in the Upper Peninsula of Michigan, U.S.A., including White Pine North, Copperwood and Keweenaw. More information about the Company and the projects is available on the Company's website at www.highlandcopper.com and on SEDAR at www.sedar.com.