Feds may offer Highland Copper $250M loan

Highland Copper (TSXV: HI) has received a significant boost for its Copperwood project in Michigan’s Upper Peninsula, with the US Export-Import Bank issuing a non-binding letter of interest for up to $250 million in debt financing.

The potential funding would cover a substantial share of the project’s estimated $400 million capital cost, moving one of the United States’ few fully permitted copper developments closer to construction.

The proposed support comes under Washington’s Make More in America initiative, aimed at strengthening domestic supply chains for critical minerals. It may also qualify under the bank’s China and Transformational Exports program.

Shares of Highland Copper had gained 9% by Tuesday afternoon in Toronto to 12¢ apiece, giving the company a market capitalization of C$88.4 million (US$64.3 million).

Permits

Copperwood is fully permitted and backed by a completed feasibility study. The underground operation is designed with a mine life of more than 10 years, processing about 6,800 tonnes per day. Highland Copper is advancing detailed engineering as it prepares for a construction decision.

Copperwood will be mined using the room-and-pillar underground method, with an estimated processing rate of 6,800 tonnes per day. Once in operation, the project will produce a copper concentrate for shipment to smelters, adding new domestic supply at a time when US policymakers are prioritizing secure access to critical minerals.

While the Export-Import Bank’s letter indicates strong interest, it is non-binding. A final commitment will depend on a full financing application, due diligence, underwriting, and board approval. The bank has outlined an initial repayment schedule of 11 years.

CEO Barry O’Shea said the potential financing highlights Copperwood’s strategic importance for U.S. copper supply and its role in the region’s economy.

“Copperwood will provide a reliable domestic source of copper, support Michigan’s economy and operate responsibly, aligned to Michigan’s stringent environmental standards,” he said.