LONGUEUIL, Quebec, May 27, 2019 (GLOBE NEWSWIRE) — Highland Copper Company Inc. (TSXV: HI, OTCQB: HDRSF) (the “Company”) is pleased to announce the closing of its previously announced US$4.5M credit agreement entered into with Greenstone Resources II LP and Osisko Gold Royalties Ltd. Having satisfied all conditions precedent under the credit agreement, the Company has made an initial drawdown of US$2,750,000.
The loan, which is secured by a mortgage on the Copperwood project, bears interest at a rate of 12% per annum and matures on February 28, 2020. Please refer to the Company’s news release dated May 21, 2019 for further details.
Canadian-based Highland Copper Company is borrowing $4.5 million to cover its deficiency in working capital.
The credit agreement is with two of the company’s shareholders, Greenstone Resources and Osisko Gold Royalties.
The money will also be used to initiate a scoping study on the White Pine project and for general corporate purposes.
Highland also intends to appoint a financial advisor to start a strategic review process.
The acquisition date of the White Pine project has been moved back again, to August 31st.
The final closing of the acquisition is subject to a number of conditions including releasing Copper Range Company from certain environmental obligations associated with the remediation and closure plan of the historical White Pine mine site and replacing the related environmental bond.
The Copperwood Project remains the company’s principal asset and the company says they are fully committed to moving that project into the construction stage.