Highland Copper Company Inc. (TSX-V: HI) has closed its third tranche of its previously announced non brokered private placement, issuing of 153,461,429 units at $0.10 per unit for gross proceeds of $15,346,143. Each unit consists of one common shares and one-half share purchase warrant with each whole warrant entitling the holder to purchase one additional common share for a period of 12 months at $0.15 per share.
OMF Fund II (H) LP, a subsidiary of Orion Mine Finance, acquired 67,250,000 units. Orion now holds approximately 18.6% of the outstanding common shares in Highland on a basic shares outstanding basis and 25.5% on a partially diluted basis.
Under the terms of the subscription agreement, Orion has received participation rights to maintain its equity ownership level in Highland in future equity financings, a right of first refusal on any debt financing for the Copperwood project until September 17, 2018, and a right to nominate a representative on a project steering committee. In addition Orion entered into an Offtake Agreement with the Company entitling Orion to purchase 15.0% of all concentrates to be produced from the Copperwood project.
A total of 28,606,650 units were subscribed by insiders including 25,000,000 by Osisko Gold Royalties Ltd.
“We welcome Orion as a new shareholder in the Company and look forward to working with them in the future as we advance the Copperwood project towards final feasibility. We also want to thank Osisko and all other shareholders for their patience and continued support over the last few years,” said Denis Miville-Deschênes, President & CEO of Highland.
Highland Copper intends to use the proceeds to update the feasibility of the Copperwood project, to complete the acquisition of the White Pine project, and for general corporate purposes.
Highland Copper Company Inc. is a Canadian exploration company focused on exploring and developing copper projects in the Upper Peninsula of Michigan, U.S.A.
photo credit: Highland Copper