Source: Highland Copper Company
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  • Highland Copper (HI) has signed an agreement to sell its UPX properties located in the Upper Peninsula of the State of Michigan
  • The company is selling the non-core asserts to Sweetwater Royalties
  • The sale price amounts to US$3 million in cash, as well as the assumption by Sweetwater of the $15 million principal amount owing under a promissory note
  • The company also intends to complete a non-brokered private placement to raise up to C$26 million
  • Highland Copper is down 4.17 per cent, trading at C$0.12 at 11:55 am ET

Highland Copper (HI) has signed an agreement to sell its UPX properties located in the Upper Peninsula of the State of Michigan.

The company is selling the non-core asserts to Sweetwater Royalties.

Sweetwater is a privately held company owned by Orion Mine Finance.

The sale price amounts to US$3 million in cash, as well as the assumption by Sweetwater of the $15 million principal amount owing under a promissory note.

The company also intends to complete a non-brokered private placement of approximately 260,000,000 units to raise up to C$26 million.

Orion is a 30-per-cent shareholder of Highland Copper and has agreed to subscribe for approximately 62,310,000 units under the offering for an aggregate cash consideration of US$5 million.

The company intends to use the proceeds of the transaction and the offering to settle all of its liabilities including the loan due to Osisko Gold Royalties and Greenstone Resources LP and to advance the development of the Copperwood and White Pine North projects.

“We are extremely pleased with the announcement of the proposed transaction and offering. Their completion should result in the elimination of all cash indebtedness from the company’s balance sheet and will allow the company to focus its efforts on plans required to develop both the fully-permitted Copperwood Project and the White Pine North Project,” said CEO Denis Miville-Deschênes.

Highland Copper is down 4.17 per cent, trading at C$0.12 at 11:55 am ET.

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