Highland Copper to sell 34% White Pine North stake
Canadian junior Highland Copper has signed a binding offer with joint venture partner Kinterra Copper to sell its 34% interest in the White Pine North project in Michigan for about $30-million, as the company pivots towards its fully permitted Copperwood project.
The transaction would generate $18.3-million in cash, after deducting the outstanding principal and accrued interest on a loan provided by Kinterra to the company’s subsidiary, Upper Peninsula Copper Holdings. That loan balance is expected to total about $11.7-million at closing.
The parties have also agreed to suspend cash calls under the White Pine joint operating agreement until the transaction closes. Should the deal fail to complete, any suspended cash calls will be allocated between the partners.
Highland Copper said the sale would deliver three key benefits: funding the remaining work required to take Copperwood to a construction decision, eliminating all existing debt, and simplifying the company’s asset base.
“The sale of our noncontrolling stake in White Pine North delivers immediate, nondilutive funding that achieves several key strategic objectives at once,” said CEO Barry O’Shea.
“We are now well capitalised to push our flagship Copperwood project to a construction decision, while eliminating debt and simplifying our corporate structure.”
Highland Copper and Kinterra aim to complete the transaction before year-end, subject to definitive agreements, regulatory approvals and other customary conditions.
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