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Highland Copper Company Inc. (TSXV: HI,OTC:HDRSF; OTCQB: HDRSF) ("Highland" or the "Company") is pleased to announce it has received a non-binding Letter of Interest ("LOI") from the Export-Import Bank of the United States ("EXIM") for potential debt financing of up to US$250 million to support development of its fully permitted Copperwood Project in the Upper Peninsula of Michigan. The LOI was issued under EXIM's Make More in America Initiative and may also be eligible under EXIM's China and Transformational Exports Program. EXIM is the official export credit agency of the United States federal government.
Copperwood is one of few U.S. copper projects with all major permits in place and a completed feasibility study. Highland is advancing detailed engineering to position Copperwood for a near-term construction decision. EXIM's potential participation would help fund a significant portion of the estimated US$400 million initial capital required to build and commission the mine.
Barry O'Shea, CEO of Highland Copper, commented: "We are thankful to receive this Letter of Interest from EXIM, demonstrating Copperwood's significance at a federal level. Copperwood is strategically positioned to strengthen the U.S. supply chain for critical minerals. Copperwood will provide a reliable domestic source of copper, support Michigan's economy and operate responsibly, aligned to Michigan's stringent environmental standards."
The LOI is non-binding, and its issuance does not represent a financing commitment from EXIM, nor is it an explicit indication of the financial or commercial viability of the project. Key details and next steps outlined in the letter include:
- Potential Debt Financing: Up to US$250,000,000 of the project's costs.
- Repayment Term: A potential repayment tenor of 11 years.
- Next Steps & Conditions: Upon submission of a formal financing application, EXIM will conduct all required due diligence to assess the potential for a Final Commitment. Any such, commitment will be contingent on meeting EXIM's underwriting criteria, completing the authorization process, and finalizing all terms and conditions.
About Highland Copper Company
Highland Copper Company Inc. is a Canadian company focused on exploring and developing copper projects in the Upper Peninsula of Michigan, U.S.A. The Company owns the Copperwood deposit through long-term mineral leases and 34% of the White Pine North project through a joint venture with Kinterra Copper USA LLC. The Company also owns surface rights securing access to the Copperwood deposit and providing space for infrastructure at Copperwood as required. The Company has 736,363,619 common shares issued and outstanding. Its common shares are listed on the TSX Venture Exchange under the symbol "HI" and trade on the OTCQB Venture Market under symbol "HDRSF".
More information about the Company is available on the Company's website at www.highlandcopper.com and on SEDAR+ at www.sedarplus.com .
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation based on expectations, estimates and projections as at the date of this news release. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. For the purposes of this news release, forward-looking information includes, but is not limited to, the potential for the Company to receive financing from EXIM as contemplated by the LOI, the timing of the investment and potential use of, and conditions imposed on the use of, the proceeds therefrom, the potential timing of a construction decision on Copperwood, and the potential of Copperwood to become a near term supplier of US Copper. Such forward-looking statements, by their nature, require the Company to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward-looking statements. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, risks that: (i) the Company will not reach a binding agreement with EXIM for financing on terms contemplated in the LOI or at all, (ii) the Company will not meet the conditions required to obtain financing from EXIM; (iii) the EXIM funds will not be sufficient to complete construction at Copperwood and accordingly, the Company will need significant additional sources of funding to complete construction, currently estimated by the 2023 Feasibility Study at approximately US$391 million which have not yet been secured and there is no guarantee that such funds will be available; (iv) the results of the Company's detailed engineering do not result in a near-term decision to begin construction or a construction decision at all; and (v) the priorities of the US administration may change such that US based mineral resource projects may at some time no longer be a priority of the US administration, as well as those risks set out in the Company's public disclosure record on SEDAR+ ( www.sedarplus.com ) including the Company's annual information form for the year ended June 30, 2024. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information or media requests, please contact:
Barry O'Shea, CEO
Email: info@highlandcopper.com
Website: www.highlandcopper.com
