LONGUEUIL, Quebec. (WLUC) – Highland Copper Company Inc. is pleased to announce that it has entered into an agreement whereby Osisko Gold Royalties Ltd has exercised part of its pre-existing option to acquire a royalty on future silver production of 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 initial payment of US $ 3 million in consideration for which the Company granted Osisko a net smelter return royalty of 3/26. on future silver production from the Copperwood project.
Upon completion of the White Pine Project Acquisition, Highland will grant Osisko a net smelter return royalty of 3 / 26th on future silver production from the White Pine Project.
Osisko has the option to acquire the remaining 23 / 26th net smelter return royalties on all silver produced by 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 initial payment, US $ 1.68 million is deposited to the Michigan Department of Environment, Great Lakes and Energy as financial assurance for the fulfillment of environmental obligations associated with the site remediation and closure plan. history of the White Pine mine. The balance of US $ 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 publication of the aforementioned financial assurance with EGLE. All the conditions have been met and the company has informed CRC that it is able to complete 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.
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. Company information is available on SEDAR at www.sedar.com and on the Company’s website at www.highlandcopper.com.
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