Highland Copper has received final approval for a $50m (C$69.37m) grant from the State of Michigan, US, to support its Copperwood underground project and related infrastructure in Gogebic County.
The Michigan Strategic Fund approved the performance-based funding under the Strategic Site Readiness Program, the company said. Highland added that no further State of Michigan approvals are required.
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The award includes $45m for Copperwood Resources, a fully owned subsidiary of Highland Copper, to support eligible infrastructure spending associated with the project’s development. A further $5m will go to the Gogebic County Road Commission for local infrastructure improvements associated with the project and benefitting the broader region.
The road commission has also secured a $7.5m Transportation Economic Development Fund Category A grant from the Michigan Department of Transportation, according to Highland. The company said the two grants together will provide around $12.6m for improvements to County Road 519.
Those works are intended to improve road safety, reliability and access. The wider grant funding will be provided through performance-based reimbursements for eligible site readiness and infrastructure spending including roads, power and communications infrastructure required to advance Copperwood.
Highland said the final approval followed a review of the project and was recommended by the Michigan Economic Development Corporation.
The investments are also expected to deliver broader regional benefits through improved transportation, utility infrastructure and cellular and broadband connectivity, according to the company.
The grant is subject to completion of a definitive grant agreement with the Michigan Economic Development Corporation (MEDC). It is also conditional on Highland providing evidence on or before 31 March 2028 that it has obtained commitments satisfactory to the MEDC for $150m in additional project financing.
Once the company demonstrates that it has met that project milestone, it will be eligible for reimbursement of expenditures made on or before 31 March 2033 on site preparation and improvement necessary to support the development of the project.
The grant is also subject to certain completion milestones, including that the company has established a minimum of 380 qualified jobs at the project.
Highland CEO Barry O’Shea said: “Final approval of this $50m investment represents an important milestone for Copperwood and a strong endorsement of the project’s potential to deliver meaningful economic benefits to Michigan’s Upper Peninsula while meeting the state’s rigorous environmental standards.
“This funding also represents an important milestone in the overall project financing. With this grant secured, in addition to the Letter of Interest from the US Export Import Bank, Highland’s capacity to finance Copperwood is considerably strengthened.”
Copperwood Resources is pursuing development of the fully permitted Copperwood Mine Project in the Wakefield and Ironwood townships.
Highland said the project seeks to invest around $425m in environmental controls, equipment, infrastructure improvements, mine development, operational facilities and site preparation.
Construction activities are expected to begin in 2028, with commercial production anticipated in 2030.
