Highland Copper exits White Pine project for $30M

Highland Copper (TSXV: HI) is selling its 34% stake in the White Pine North project to private equity firm Kinterra, its joint venture partner, to focus solely on its main Copperwood project. 

Total consideration of the sale is around $30 million, the Michigan-focused miner said on Tuesday. Of that, $18.3 million will be paid in cash, net of $11.7 million in a previous loan from Toronto-based Kinterra. The parties have agreed to suspend cash calls under their joint operating agreement.

Highland Copper gained a cent on Tuesday to C13¢ a share, giving the Toronto-based copper developer a market capitalization of C$92.1 million.

“The sale of our non-controlling stake in White Pine North delivers immediate, non-dilutive funding that achieves several key strategic objectives at once,” CEO Barry O’Shea said in a release. “We are now well capitalized to push our flagship Copperwood project to a construction decision, while eliminating debt and simplifying our corporate structure.”

The White Pine North project represents the extension of a historical mine that operated from 1953 to 1995. Highland Copper acquired the project from First Quantum Minerals (TSX: FM) in 2021. A preliminary economic assessment released in July 2023 projected a 21.8-year mine life at a processing rate of 15,000 tonnes per day. That same month, it signed a joint venture on the project with Kinterra.

Copperwood

With the sale of its stake in White Pine North, Highland Copper’s focus is now fully placed on the more advanced Copperwood project. Both projects are located in the Western Upper Peninsula of Michigan.

Copperwood has all permits in place and is backed by a feasibility study, also completed in 2023. The report outlined a low-cost mine with an expected life of nearly 11 years, during which it would deliver annual payable production of about 64.6 million lb. of copper and 107,000 oz. of silver.

The deposit is to be mined using the room-and-pillar underground method, with an estimated processing rate of 6,800 tonnes per day. Once in operation, it 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.

In support of the project’s development, the U.S. Export-Import Bank issued in September a letter of interest to Highland Copper for a potential $250-million financing that would cover a large share of its estimated $391 million initial capital cost.

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