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Highland Copper Announces Preliminary Economic Assessment Results for White Pine North Project and Joint Venture Transaction with Kinterra
VANCOUVER, British Columbia, July 24, 2023 (GLOBE NEWSWIRE) -- Highland Copper Company Inc. (TSXV: HI; OTCQB: HDRSF) (“Highland” or the “Company”) is pleased to
About this update from Highland Copper Co., Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, July 24, 2023 (GLOBE NEWSWIRE) -- Highland Copper Company Inc. (TSXV: HI; OTCQB: HDRSF) (“Highland” or the “Company”) is pleased to announce the results of the Preliminary Economic Assessment (“PEA”) and mineral resource estimate for the White Pine North project (“White Pine North”) in Michigan, USA. The PEA demonstrates the robust economic strength of this long-lived project. Simultaneously, Highland is pleased to introduce Kinterra Copper USA LLC (“Kinterra”) as a joint venture (“JV”) partner on the project. Kinterra will bring additional financial and technical strength required to progress the project through to development. Kinterra has made a cash payment of $30 million to Highland for a 66% stake in the White Pine North project. Additionally, the joint venture has agreed to spend a further $30 million to advance the project through permitting, infill drilling and feasibility study. Highland continues to make great progress in 2023. Combined, these announcements markedly improve Highland’s prospects of advancing its larger White Pine North project while focusing on moving its Copperwood project to construction and operation. Highland believes this is positive for all stakeholders, particularly the State of Michigan where Highland’s project development is aligned with the State vision of electrification and regional support for local communities. Key highlights of the PEA and joint venture transaction include (all figures in $USD): Robust PEA Results Set Path for White Pine North Advancement: With a significant increase in resource base, an after-tax net present value (“NPV”) 8% of $821 million and an after-tax internal rate of return (“IRR”) of 20.8%, the project provides strong cash flow and leverage to copper price. Kinterra Invests $30 Million for 66% of White Pine North, Funds Available for Copperwood: The initial $30 million proceeds from the joint venture arrangement allow Highland to initiate early site works at the fully-permitted Copperwood project, where Highland is focused on advancing to development and production. Additional $30 Million Commitment to Advance White Pine North Permitting and Feasibility Study: Kinterra and Highland, as JV partners, have agreed on a further $30 million investment in the project to be funded by Kinterra. This consists of $20 million representing Kinte...