Amendment to Joint Venture Agreement to Acquire Copper Resources in Keweenaw and Houghton Counties, Michigan
Vancouver, British Columbia - Highland Resources Inc. ("Highland" or the "Company") is pleased to announce that further to its press release of November 1, 2011, the Company has executed an amendment agreement ("JV Amendment") to its Joint Venture Agreement with BRP LLC and Keweenaw Copper Co. (the "Original JV Agreement"). The key terms of the JV Amendment are as follows:
The duration of the earn-in contribution period for which Highland must incur not less than $11,500,000 in qualifying expenditures has been increased from three years to four years;
The deadline schedule for which such qualifying expenditure amounts must be made has been revised; and
The deadline by which Highland must deliver a feasibility study to BRP has been amended from July 15, 2014 to October 26, 2015.
The Company entered into the Original JV Agreement on July 21, 2011 (with an effective date of July 15, 2011) pursuant to which Highland acquired the right to earn up to a 65% interest in copper resources located in Keweenaw and Houghton Counties, Michigan (the "Property") for consideration of $750,000 cash, 1,000,000 common shares of the Company, and $11,500,000 to be spent on a development and exploration program on the Property by July 15, 2014. At the end of the earn-in period and as a condition to earning its 65% interest, Highland is required to produce a feasibility study on the Property by an independent consultant selected by the management committee.
Separately, the Company announces that Mr. David Salmon has resigned as a director of the Company and Mr. Gary Arca has stepped down as Chief Financial Officer and Corporate Secretary. Mr. Arca will continue to serve as a Director of the Company. The Company has appointed Dr. Frederick T. Graybeal to the Board of Directors to fill the vacancy created by the resignation of Mr. Salmon. Dr. Graybeal is a geologist who spent most of his 45 year career focused on base and precious metal exploration with ASARCO Incorporated, prior to retiring in 2003 as Chief Geologist. He is currently involved with a number of public exploration companies as a director or as member of advisory board. Dr. Graybeal also provides technical advice on various exploration projects and is a member of a U.S. Geological Survey group researching copper deposits in Arizona. He is a past Vice President of the Society of Economic Geologists, has served on two committees of the National Research Council, and is a recipient of the SME Dickerson award (recognizing professionalism and contributions to the mining industry) and the SEG Marsden award (for outstanding service to the Society). He received his A.B. (1960) from Dartmouth College and his M.S. (1962) and Ph.D. (1972) degrees from the University of Arizona and has published on various scientific and professional subjects.
"Highland is very pleased to have Dr. Graybeal join its Board," said Robert Eadie, President & CEO of Highland. "Fred is considered an expert on copper mineral deposits and we believe that he will add strength to the Company and he will play an important role in advancing the Keweenah copper project. In addition to being a director, he will provide technical advice to Highland. We welcome Dr. Graybeal and look forward to his valued input in our team."
The Company has also appointed Alain Krushnisky as CFO of the Company, and Carole Plante as Corporate Secretary. Mr. Krushnisky is a chartered accountant with close to twenty years of experience in the mining sector. He obtained a bachelor's degree in commerce in 1983 from the University of Ottawa. Mr. Krushnisky was employed by a mid-tier gold producer, for over 10 years in various capacities, including Vice-President and Controller. Over the last eight years, Mr. Krushnisky has been consulting for various mining companies and is currently CFO of a number of mineral exploration companies listed on the TSX Venture Exchange ("TSXV"). Mr. Krushnisky is also a director and chair of the audit committee of Orezone Gold Corporation and Cogitore Resources Inc. Ms. Plante holds a law degree from the University of Montreal, is a member of the Quebec Bar and has over 19 years of experience in the mining sector as corporate secretary and legal counsel of various companies listed on the TSX, TSXV and AMEX. She currently is General Counsel and Corporate Secretary of a number of mineral exploration companies listed on the TSXV.
The appointments are subject to review and approval by the TSXV.
Highland is dedicated to the principles of environmentally sound mining practices and believes that environmental stewardship and mining can co-exist.
ON BEHALF OF THE BOARD
Signed "Robert Eadie"
President, Chief Executive Officer and Director
FOR FURTHER INFORMATION PLEASE CONTACT:
Contact: Robert Eadie
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