Michigan Strategic Fund Approves $50 Million Grant for Highland Copper's Copperwood Project
March 26 2024 - 12:19PM
Highland Copper Company Inc. (TSXV: HI; OTCQB: HDRSF)
(“
Highland” or the “
Company”) is
proud to announce that after review of the permitted Copperwood
Project (the “
Project”), the Michigan Strategic
Fund Board has unanimously approved a performance-based grant of
$50 million from the Strategic Site Readiness Program
(“
SSRP”). The Copperwood Project is strongly
aligned with Michigan’s focus on mobility and electrification and
has the potential to be a key source of U.S. domestic copper to
supply the ongoing clean energy transition. The transfer of funds
is pending final approval from the Appropriations Committees in
both the Michigan House and Senate.
The SSRP program is funded through the Strategic
Outreach and Attraction Reserve Fund (“SOAR”) and
provides economic assistance for the purpose of creating
investment-ready sites to attract and promote investment in the
state. The grant award comes after a thorough review of the
Copperwood Project by the state of Michigan and the Company’s
demonstration of the importance of the Project’s development to the
Upper Peninsula. The grant funds will be in the form of
performance-based reimbursements for eligible activities relating
to infrastructure development, most notably expenditure on roads,
communications infrastructure and bringing power to site. The
infrastructure improvements supported by the grant will provide
benefits to the surrounding communities and businesses, both during
the operations and in the long-term.
“This $50 million grant is a wonderful
endorsement from the State of Michigan and provides a significant
financial boost to the economic strength of the Copperwood Project.
We are thankful to Governor Whitmer and the hard-working team at
MEDC for their relentless efforts and support. The aligned
attention to detail and carefulness from the State of Michigan and
its departments will help drive a successful and safe project for
Michigan and the Upper Peninsula. Additionally, I would like to
thank the many stakeholders from the Western Upper Peninsula and
extended community for the overwhelming amount of support we have
received for this project. It has been very humbling to do business
in Michigan,” stated Barry O’Shea, Highland Copper’s
CEO.
The Copperwood Project team has been working
alongside local and regional community groups, government
representatives and regulatory bodies in the Upper Peninsula for
over a decade. Transparent and regular communications are central
to the Company’s values and have resulted in strong support for the
project throughout this application process. In addition to the 22
formal resolutions of support and approximately 10 letters of
support that accompanied the grant application, more than 20 local
community members and representatives participated in the MSF Board
meeting and provided public comment in support of the project,
speaking to its importance for the region.
“Team Michigan is thrilled to support the
construction of the Copperwood Mine and grateful for the
collaborative efforts of everyone – from the company to local and
state officials and beyond – to ensure the success of this
project,” said Quentin L. Messer,
Jr., CEO of the Michigan Economic
Development Corporation and President and Chair of the Michigan
Strategic Fund. “The economic impact of this project –
with high wage direct jobs and countless community-supporting
indirect jobs – cannot be overstated, as it translates to greater
economic stability and prosperity for families, small businesses,
and the local community. Copperwood Mine is another example of a
company leveraging Michigan assets to ensure our continued
leadership in sustainability and mobility innovation. We will
continue working to win projects, invest in places and attract
people as we encourage businesses of all sizes to ‘Make it in
Michigan’.”
The Western Upper Peninsula has suffered
industry closures in the past decades that took their toll on the
local economy. The return of mining to the area is seen as an
opportunity for significant economic uplift and can become a
transformative catalyst to renewed industrial investments in the
area that will support the regional economy for the decades to
come. In addition, the potential creation of approximately 380
long-term, family sustaining jobs as well as substantial direct,
indirect and induced economic benefits from additional spending in
the area, can play a role in kickstarting a new chapter of
prosperity for the Western Upper Peninsula.
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. The Company also owns surface rights securing access
to the deposit and providing space for infrastructure 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
statements” and “forward-looking information” (collectively
“forward-looking statements”) within the meaning of applicable
Canadian securities legislation. These statements include, without
limitation, statements with respect to: (a) the anticipated
issuance of the grant; (b) projected employment benefits of the
Copperwood Project; (c) the anticipated economic benefits to the
local and state economies resulting from the construction and
operation of the Copperwood Project; and (d) that certain of the
costs will be eligible for the grant. The forward-looking
statements were prepared based in part on the Company’s
construction and operation budget for the Copperwood Project, which
are summarized in the Company’s technical report entitled
“Feasibility Study Update Copperwood Project Michigan, USA” dated
April 20, 2023 available on SEDARPlus (the “Technical Report”). The
forward-looking statements are subject to a number of assumptions,
including those set out in the Technical Report, assumptions
regarding the location of employees and sources of products and
services, and assumptions built into the IMPLAN’s model for
projecting direct and indirect benefits. These underlying
assumptions may prove to be incorrect. Important factors that could
materially impact the Company's expectations include: timing and
receipt of approvals of the Michigan State House and Senate, which
are not guaranteed; uncertainties in the timing of development of
the Copperwood Project; changes in project parameters as plans
continue to be refined; availability of services, materials and
skilled labour to complete construction and operate the Copperwood
Project; effects of regulation by governmental agencies; unexpected
cost increases, which could include significant increases in
estimated capital and operating costs and the effects of inflation;
fluctuations in metal prices and currency exchange rates;
construction and other delays, construction, operating and
reclamation costs varying significantly from those estimated or
projected, general market and industry conditions, and the risks
set out in the Company’s public disclosure documents filed on
SEDARPlus. Although the Company believes that the assumptions and
factors used in preparing the forward-looking statements in this
news release are reasonable, undue reliance should not be placed on
forward looking statements. All forward-looking statements in this
press release are based on information available to the Company as
of the date hereof, and the Company undertakes no obligation to
update forward-looking statements except 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
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