Highland Resources Inc. (TSX VENTURE:HI) has entered into a Joint Venture Agreement with BRP LLC whereby Highland has acquired the right to earn in up to a 65% interest in copper resources in Keweenaw and Houghton counties, Michigan.
Under the terms of the agreement, Highland will pay U.S. $750,000 to BRP and issue 1,000,000 common shares to BRP over a two year period. Highland has committed to spend up to U.S. $11.5 million over a three year period on a development and exploration program on the property to earn the 65% interest. BRP will have the option to retain a minimum 35% interest in the property and will receive a sliding scale net smelter return from production depending on the price per pound of copper with a minimum of 2% for copper priced at less than U.S. $1.70 per pound to a maximum of 5% for copper priced U.S. $3.00 per pound and above.
The agreement provides that at the end of the earn-in period and as a condition to earning its 65% interest, Highland will produce a feasibility study on the Property by an independent consultant selected by the Management Committee. Highland has been appointed as the initial Manager of the Joint Venture with overall responsibility for operations.
Highland has engaged the firm of Behre Dolbear & Company Inc. to prepare a Property of Merit NI 43-101 Report on certain copper resources located on the property. The property has been the subject of prior exploration, development, mining, production and reclamation operations.
The transaction is subject to regulatory approval including approval by the TSX Venture Exchange.
