Highland raises $16.5 million for Upper Peninsula copper properties
Micro-cap Highland Resources (TSX VENTURE:HI) added 28% to trade at 9c on Wednesday on higher than usual trading volumes, after announcing it has closed the final tranche of its non-brokered private placement, raising a total of $16.5 million.
The Vancouver-based company is issuing a whopping 206 million units at a price of $0.08. Each unit is comprised of one common share and one transferable common share purchase warrant, which can be exercised over the next two years for common stock at $0.15 per share.
The company said the proceeds will be used to earn a 65% interest in copper properties located in the Upper Peninsula of Michigan in the US Midwest where copper and iron mining dates back to the first half of the 19th century.
Highland is in good company in the region.
Kennecott Eagle Minerals, a subsidiary of Rio Tinto, is targeting an underground ore deposit in the Upper Peninsula that would be the only US mine where nickel is the primary mineral generated instead of a byproduct. The $470 million project could yield up to 300 million pounds of nickel and about 200 million pounds of copper. Hudbay Minerals is also advancing a $225 million gold- silver- zinc-copper project in the area .
Highland is part of the iMining group which houses precious metals explorers Starcore and Cortez among others. Around 630,000 shares in the $6.7 million company had changed hands by 2:20 pm EST on Thursday compared to the daily average of less than 100,000. The counter is still showing losses over the past 12 months of more than 50%.
Image is of Miner's Castle on Lake Superior
Highland Raises $16.5 Million, Closes Private Placement
VANCOUVER, BRITISH COLUMBIA–(Marketwire – May 31, 2012) – Highland Resources Inc. (the "Company") (TSX VENTURE:HI) announces in three tranches through the issuance of 206,250,000 Units at a price of $0.08 per Unit. Each Unit is comprised of one common share of Highland and one transferable common share purchase warrant, each whole warrant exercisable for a period of two years from the date of issue to purchase one common share of Highland at a price of $0.15 per share.
The warrants are subject to an acceleration clause at the option of the Company, with a provision that if after the expiry of all resale restrictions, the closing price of the Company's shares on the TSX Venture Exchange is $0.40 or greater for a period of 20 consecutive trading days, the Company may give notice of an earlier expiry of the Warrants, in which case they will expire 30 days after the giving of such notice.
As part of the private placement, an aggregate of $283,274.00 was paid to various finders for portions of the financing attributable to such finders' efforts. Additionally, 16,849,938 shares were issued to Nassau Capital Management Partners Inc. ("Nassau") as a finder's fee for the portion of the financing attributable to Nassau's efforts.
All of the securities issued pursuant to this offering are restricted from trading for a period of four months and one day after closing.
In addition to working capital, the net proceeds of the private placement will be used to meet the Company's commitments for acquiring a 65% interest in copper properties located in the Keweenaw and Houghton counties of Michigan. (See news release dated November 1, 2011).
After closing the private placement, the Company's current issued and outstanding share capital is a total of 256,916,060 common shares.
ON BEHALF OF THE BOARD
Robert Eadie, President, Chief Executive Officer and Director
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.
- Highland Resources Inc.
President, Chief Executive Officer and Director