Highland Copper set to acquire Copperwood
LONGUEUIL, QUEBEC – A Canadian copper exploration company with properties in Houghton, Keweenaw and Ontonagon counties has announced plans to expand operations to include an additional project in Ontonagon and Gogebic counties.
Highland Copper Company Inc. and Orvana Minerals Corp. have entered into a definitive agreement whereby Highland will acquire all rights, title and interest in the Copperwood Project from Orvana through the acquisition of all of the outstanding shares of Orvana Resources US Corp. Copperwood is located approximately 19 miles southwest of the White Pine Mine in Ontonagon and Gogebic counties.
According to a press release from Highland, among other things, closing of the acquisition is conditional upon the completion of financing to fund the acquisition and receipt of all required regulatory approvals including the approval of the TSX Venture Exchange. Closing, which has been approved by both companies’ board of directors, is expected by April 30.
“This transaction is part of a strategy that Highland has undertaken to consolidate an emerging copper district in the Upper Peninsula of Michigan,” said David Fennell, Executive Chairman of Highland. “The acquisition of Copperwood in conjunction with our previously announced acquisition of the White Pine Project, and combined with our existing Keweenaw projects, establishes the foundation for an emerging intermediate copper producer. The synergistic combination of these three assets in a single portfolio will bring together a large-scale historical estimate of copper reserves and resources at White Pine and Copperwood, and additional potential copper resources from the Keweenaw projects.”
Last November Highland announced its acquisition of the White Pine Mine. It also owns the Keweenaw Copper Mine near Kearsarge where it has been conducting exploratory drilling and additional projects in Keweenaw County.
Michael Winship, president and chief executive officer of Orvana, said “Orvana has been pleased to be part of the development of Copperwood over the last several years. We continue to believe that a good copper mine will be built here.
“Based on a strategic planning review in 2013, Orvana decided that a disposition would allow for greater organic growth at existing operations through concentrated exploration. In addition, Orvana’s balance sheet will be strengthened in this challenging market of metal price volatility.”
Highland will pay Orvana up to $25 million of which $20 million will be paid in cash upon Closing and $5 million will be paid in cash or shares of Highland, at Orvana’s option.