Highland Copper Company Inc. reports that it has acquired the White Pine North Project situated in Michigan.
All the terms and conditions have been fulfilled and the documents required to complete the project acquisition from Copper Range Company, a 100% owned subsidiary of First Quantum Minerals Ltd., have been signed.
In view of the transaction with Copper Range, White Pine Copper LLC, a 100% owned subsidiary of Highland, has accepted to own all obligations, duties and benefits of Copper Range under a judicial Consent Decree signed in 1997 and later revised, regarding the White Pine mining facility that was formerly operated by Copper Range.
Against this backdrop, Copper Range, White Pine Copper and the Department of Attorney General for the State of Michigan have signed a Stipulated Order for Assignment and Assumption of Consent Decree, which the Ingham County Circuit Court in Michigan has approved.
Moreover, White Pine Copper has offered a certificate of deposit to the tune of US$1.68 million for the advantage of the Michigan Department of Environment, Energy, and Great Lakes as a financial guarantee for executing environmental obligations linked with the remediation and closure plan of the historical White Pine mine site. The terms and conditions of the assignment of the Consent Decree to White Pine Copper are explained in the Stipulated Order.
About the White Pine North Project
The White Pine North Project is situated in the historical copper range district of the Upper Peninsula of Michigan, United States. It is an extension of the historical White Pine mine that was active from 1953 to 1995. Before its closure, more than 4.5 billion pounds of copper had been generated from the former White Pine mine.
On September 23rd, 2019, Highland had declared the findings of a preliminary economic assessment (PEA) and a mineral resource estimate on the White Pine North Project. The PEA offered a base case evaluation of the White Pine North Project using a silver price of $16.00/oz and a copper price of $3.00/lb.
The mine life was calculated to be 25 years, which includes one year of ramp-up, with an average annual LOM payable copper production of 89 million pounds and 1.3 million ounces of silver.
Total Indicated Mineral Resources of the White Pine North deposit were calculated at 133.4 M tons grading an average of 1.07% Cu and 14.9 g/t Ag, including 3.2 billion pounds of copper and 63.8 million ounces of silver with a cut-off grade of 0.9% Cu for only the Parting Shale column.
Inferred Mineral Resources were approximated at 97.2 M tons grading an average of 1.03% Cu and 8.7 g/t Ag, which includes 2.2 billion pounds of copper and 27.2 million ounces of silver using a cut-off grade of 0.9% Cu.
We are extremely pleased to have finally completed this transaction. The White Pine North Project offers great potential and will be a valuable asset to the Company for many years. In parallel, we are continuing our discussions with various parties to conclude transactions with the objective of eliminating the Company’s debt and raising funds to resume activities and advance the development of both the Copperwood and White Pine North projects.
Denis Miville-Deschênes, CEO, Highland Copper Company Inc.