June 30, 2016 13:54 ET
LONGUEUIL, QUEBEC--(Marketwired - June 30, 2016) - Highland Copper Company Inc. (TSX VENTURE:HI) (the "Company") is pleased to announce that it and Osisko Gold Royalties Ltd ("Osisko") have agreed to amend the terms of their agreement entered into in December 2014 and to convert the C$10 million secured loan into a 3.0% net smelter return royalty on all metals produced from the mineral rights and leases associated with the Copperwood project. Upon closing of the acquisition of the White Pine project, the Company will grant Osisko a 1.5% net smelter return royalty on all metals produced from the White Pine project, and Osisko's royalty on Copperwood will be reduced to 1.5%.
On December 15, 2014, Osisko had provided a C$10 million loan to the Company secured against all of the Company's assets which was to be converted to a 3% sliding-scale net smelter return royalty on all metals from the White Pine project upon completion of the acquisition by the Company of the White Pine project (see December 16, 2014 news release). The other terms of the transaction with Osisko remain unchanged including the option to purchase for US$26 million any future silver production from the Company's projects.
Highland Copper Company Inc. is a Canadian exploration company focused on exploring and developing copper projects within the Upper Peninsula of Michigan, U.S.A. Additional information about the Company, the Osisko transaction and the acquisition of the White Pine project is available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.highlandcopper.com.
Certain statements contained in this news release constitute forward looking information under the provisions of Canadian securities laws including statements about the acquisition of the White Pine project and the Osisko's option to acquire a silver royalty. The information contained herein reflects Highland's views as of the date of this news release. Forward looking information is based on assumptions, and by its nature is subject to risks and uncertainties that may cause actual future events to differ materially from those anticipated in it. Such risks and uncertainties include, but are not limited to: global economic and capital market conditions affecting Highland's ability to access sufficient capital to complete the acquisition of White Pine and develop its projects; Highland being unable to meet the final closing conditions to acquire White Pine; fluctuations in the price of copper; fluctuations in the value of the Canadian dollar relative to the U.S. dollar; and title, permit or license disputes related to Highland's projects. The materialization of any of these risks may cause actual results to be materially different from those expected by the Company at this time. The Company does not intend, and does not assume any obligation, to update forward-looking information, except as required by law. Accordingly, readers are advised not to place undue reliance on forward-looking information.
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.
David FennellExecutive Chairman and Interim President and CEO1.email@example.com
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