Highland Copper gets local support for $50M grant to build Michigan mine

[Redator]

Highland Copper Company (TSXV: HI) says it has received local backing in Michigan for securing a state grant of $50 million to fund the construction of its Copperwood project, located in the Western Upper Peninsula.

In a press release Wednesday, the Canadian copper developer said the community of Wakefield Township, where the Copperwood project resides, has taken “the proactive step” of directly requesting a $50 million grant from the Michigan legislature.

The company is currently awaiting final approval from the state’s Senate Appropriations Committee with respect to a $50 million grant offered by the Michigan Economic Development Corporation in January 2024.

Wakefield Township’s request, Highland Copper says, helps to create “a separate path for the potential approval of the regional infrastructure funding” — increasing its chances of securing the $50 million infrastructure funding.

Copperwood project

Copperwood is a wholly owned greenfield project located 22.5 km north of Wakefield, Michigan, and one of two assets held by Highland Copper in the state.

The company envisions Copperwood as a low capital intensity project that can reach commercial production quickly, and has so far obtained all permits required to begin construction. Site preparations began as early as 2023.

According to a feasibility study completed the same year, Copperwood is expected to produce 64.6 million lb. of copper and 106,966 oz. of silver annually over a projected 11.7-year mine life. Its after-tax net present value is estimated at $168 million, with an internal rate of return of 17.6%. Initial capital expenditures are set at $391 million.

The underground operation will use a room-and-pillar mining method with an estimated average processing rate of 6,800 tonnes per day. Facilities on site will include grinding, flotation, concentrate thickening, concentrate filtration, storage, and loadout.

This year, the company completed resourcing all engineering workstreams for the Copperwood project, and expects to complete the engineering design criteria by the third quarter.

For the project’s construction, Highland Copper has been focused on mitigation activities required under its wetlands and streams permit, including the successful planting of nearly 20,000 trees in the newly constructed areas. The mitigation program represents the final site activities required before a construction decision, the company said.

Barry O’Shea, CEO of Highland Copper, commented: “Highland is focused on key work programs that should enable a construction decision for Copperwood in 2026. This includes early site work to prepare for construction, progress on detailed engineering and metallurgical optimization, and continued advancement on state and federal funding opportunities.”