Highland Copper enters into leases of additional mineral rights

LONGUEUIL, Quebec — Highland Copper Company announced Monday that the company had entered into an agreement to secure additional mineral rights in White Pine, located in Ontonagon County, from a private Michigan limited liability company, expanding the company’s holdings in the region.

The leased mineral rights would secure approximately 1,816 acres, the press release announcing the agreement said, located within the White Pine North project area but that wasn’t owned by the owners of the former White Pine Mine.

Once the agreement is finalized, Highland will pay $225,000 in cash, as well as $400,000 in company stock at the time of closing, according to the announcement.

Additional cash payments will also be made on the first and second anniversaries of the closing. In addition to these payments, Highland will pay rent annually as well as “a sliding scale royalty on copper and silver production from the leased mineral rights with a base royalty of 2 percent for copper and 2.5 percent for silver,” according to the press release.

The transaction is expected to closed on Friday, according to the release.

The lease would be for 20 years, with the option for an additional five years, the release said.

Highland retained the ability to repurchase 50 percent of the royalties and may terminate the lease at any time — as long as 30-days notice is provided.

Along with the lease of mineral rights, Highland also announced it has raised $7.6 million in private placement financing.

— Richard Jenkins