Highland Copper exits White Pine North project for $30M

Highland Copper Company (TSXV: HI) is selling its 34% stake in the White Pine North project to private equity firm Kinterra, its joint venture partner, to focus solely on its flagship Copperwood project, the Michigan-focused miner said on Tuesday.Total consideration of the sale is around $30 million. Of that, $18.3 million will be paid in cash, net of the outstanding principal and accrued interest on the loan made by Kinterra to Highland Copper, which would total $11.7 million at closing. The parties have agreed to suspend cash calls under their joint operating agreement.Highland Copper traded flat on the news at C$0.12 a share, giving the Toronto-based copper developer a market capitalization of C$88.6 million ($62.8 million).The transaction, said Highland Copper, represents a “significant milestone” in strengthening its financial position ahead of the next phase of development of its Copperwood project. The cash proceeds are expected to fund the activities required to advance the project to a construction decision, including detailed engineering and project financing, it noted.“The sale of our non-controlling stake in White Pine North delivers immediate, non-dilutive funding that achieves several key strategic objectives at once,” CEO Barry O’Shea stated in a press release. “We are now well capitalized to push our flagship Copperwood project to a construction decision, while eliminating debt and simplifying our corporate structure.”The White Pine North project represents the extension of a historical mine that operated from 1953 to 1995. Highland Copper acquired the project from First Quantum Minerals in 2021 and subsequently advanced it to the preliminary economic assessment stage. The PEA, released in July 2023, projected a 21.8-year mine life at a processing rate of 15,000 tonnes per day. That same month, it signed a joint venture on the project with Kinterra.Full focus on CopperwoodWith the sale of its stake in White Pine North, Highland Copper’s focus is now fully placed on the more advanced Copperwood project. Both projects are located in the Western Upper Peninsula of Michigan.Copperwood currently has all permits in place and is backed by a feasibility study, also completed in 2023. The report outlined a low-cost mine with an expected life of nearly 11 years, during which it would deliver annual payable production of approximately 64.6 million lb. of copper and 107,000 oz. of silver.The deposit will be mined using the room-and-pillar underground method, with an estimated processing rate of 6,800 tonnes per day. Once in operation, it will produce a copper concentrate for shipment to smelters, adding new domestic supply at a time when US policymakers are prioritizing secure access to critical minerals.In support of the project’s development, the US Export-Import Bank issued in September a letter of interest to Highland Copper for a potential $250 million financing that would cover a large share of its estimated $391 million initial capital cost.“Copperwood will provide a reliable domestic source of copper, support Michigan’s economy and operate responsibly, aligned to Michigan’s stringent environmental standards,” O’Shea said at the time of the letter issuance.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com