Highland Copper enters into US$4.5 million loan with Greenstone and Osisko
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Highland Copper enters into US$4.5 million loan with Greenstone and Osisko
May 21, 2019 – Longueuil, Quebec. Highland Copper Company Inc. (TSXV: HI, OTCQB: HDRSF)
(the “Company” or “Highland”) is pleased to announce the execution of a credit agreement with two of
its significant shareholders, Greenstone Resources II LP ("Greenstone") and Osisko Gold Royalties Ltd
(“Osisko”) (collectively, the "Lenders").
Under the terms of a credit agreement (the “Loan”), the Lenders have agreed to provide the Company
with a loan of up to US$4.5M (the “Principal Amount”). The Loan will bear interest at a rate of twelve
percent per annum, has a maturity date of nine months from the initial drawdown (the “Maturity Date”)
and will be disbursed in a number of tranches pursuant to an approved budget. The Principal Amount of
the Loan as well as accrued interest will be payable at the lat est on the Maturity Date. The Company
expects that closing and the first drawdown will occur on or about May 24, 2019.
The Company will be using the Loan proceeds to settle its working capital deficiency, to initiate a scoping
study on the White Pine project and for general corporate purposes. The Company also intends to appoint
a financial advisor to start a strategic review process.
Greenstone and Osisko respectively hold 17.1% and 15.7% of the issued and outstanding common shares
of the Company. The entering into the Loan is considered to be a “related party transaction” under
Multilateral Instrument 61-101 re specting Protection of Minority Security Holders in Special
Transactions (“MI 61-101”) but is exempted from the requirement to obtain a formal valuation pursuant
to 5.5 (b) and from the requirement to obtain minority approval pursuant to 5.7(1)(f) of MI 61-101, as
the Loan (i) is on reasonable commercial terms that are not les s advantageous to Highland than if the
Loan was obtained from an arm’s length party, and (ii) is not c onvertible, directly or indirectly, into
equity or voting securities of th e Company or a subsidiary of t he Company or repayable as to principal
or interest, directly or indirectly, in equity or voting securi ties of the Company or a subsidiary of the
Company.
Update on the closing of the White Pine project
The Company and Copper Range Company (“CRC”), a wholly-owned su bsidiary of First Quantum
Minerals Ltd., have agreed to extend the period to complete the acquisition of the White Pine project to
August 31, 2019. The final closing of the acquisition is subjec t to a number of conditions including
releasing CRC from certain environmental obligations associated with the remediation and closure plan
of the historical White Pine mine site and replacing the related environmental bond.
About Highland
Highland Copper Company Inc. is a Canadian-based company focuse d on exploring and developing
copper projects in the Upper Peninsula of Michigan, U.S.A. The Company’s principal asset is the
Copperwood Project, a development stage copper project fully pe rmitted to move into the construction
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stage. More information about the Company is available on the C ompany’s website at
www.highlandcopper.com and on SEDAR at www.sedar.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain forward-look ing statements within the meaning of applicable
Canadian securities legislation. Th ese forward-looking statements include, without limitation, the
Company’s use of proceeds from the Loan, the Company’s ability to raise the required funds to continue
its activities, to close the acquisition of the White project, and to meet all its commitments and business
plans. Readers are cautioned not to place undue reliance on forward-l ooking statements, as there can
be no assurance that the Company will be able to s ecure a debt and/or equity financing package or to
complete a strategic transaction. Risks, uncertainties, assumptions and other factors which could cause
events or outcomes to differ materially from t hose expressed or implied by such forward-looking
statements include, among others, the effects of ge neral economic conditions, commodity prices, risks
associated with exploration and project development, the calculation of mineral resources and reserves;
operational risks associated with mining and mineral processing; fluctuations in metal prices; title
matters; government regulation; obtaining and renewing necessary licenses and permits; environmental
liability and insurance; reliance on key personnel; dilution; the volatility of our common share price and
volume; future sales of shares by existing shar eholders; and other risks and uncertainties, including
those risks described in our most recently filed annual financial statements and management’s discussion
and analysis relating to the Company's business and plans for development of the Copperwood project,
available at www.sedar.com. All forward looking st atements in this pre ss release are based on
information available to the Company as of the date hereof, and the Company undertakes no obligation
to update forward-looking statements except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
For further information, please contact:
Denis Miville-Deschênes, President & CEO
David Charles, Investor relations
Tel: +1.450.677.2455
Email: [email protected]