Business
Highland Copper enters into US$4.5 million loan with Greenstone and Osisko
LONGUEUIL, Quebec, May 21, 2019 (GLOBE NEWSWIRE) -- Highland Copper Company Inc. (TSXV: HI, OTCQB: HDRSF) (the “Company” or “Highland”) is pleased to announce t
About this update from Highland Copper Co., Inc.
[{"type":"text","content":" LONGUEUIL, Quebec, May 21, 2019 (GLOBE NEWSWIRE) -- 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 latest 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 respecting 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 less advantageous to Highland than if the Loan was obtained from an arm’s length party, and (ii) is not convertible, directly or indirectly, into equity or voting securities of the Company or a subsidiary of the Company or repayable as to principal or interest, directly or indirectly, in equity or voting securities 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 subsidiary of First Quantum Minerals Ltd., have agreed to extend the period to complete the acquisition of the White Pine proje...