The Highland Copper Company Inc. and Orvana Minerals Corp. have entered into a definitive agreement whereby Highland will acquire all rights, title and interest in the Copperwood Project.
The Copperwood Project is located about 18 miles southwest of the White Pine Project, in Gogebic County. Closing is expected to take place by April 30th. Highland will pay Orvana up to $25 million all together, $20 million of which will be paid in cash upon closing. The Agreement has already been approved by both companies’ Boards of Directors.
David Fennell, Executive Chairman of Highland, stated: “This transaction is part of a strategy that Highland has undertaken to consolidate an emerging copper district in the Upper Peninsula of Michigan. The acquisition of Copperwood in conjunction with our previously announced acquisition of the White Pine Project, and combined with our existing Keweenaw projects, establishes the foundation for an emerging intermediate copper producer. The synergistic combination of these three assets in a single portfolio will bring together a large-scale historical estimate of copper reserves and resources at White Pine and Copperwood, and additional potential copper resources from the Keweenaw projects.”
“Orvana has been pleased to be part of the development of Copperwood over the last several years. We continue to believe that a good copper mine will be built here,” noted Michael Winship, President and Chief Executive Officer of Orvana. “Based on a strategic planning review in 2013, Orvana decided that a disposition would allow for greater organic growth at existing operations through concentrated exploration. In addition, Orvana’s balance sheet will be strengthened in this challenging market of metal price volatility.”
More information regarding the sale can be found on Highland’s website.