Orvana closes Copperwood sale to Highland
2014-06-17 16:14 ET - News Release
Ms. Daniella Dimitrov reports
ORVANA CLOSES SALE OF COPPERWOOD TO HIGHLAND COPPER
Orvana Minerals Corp. has closed the sale of its Copperwood project to Highland Copper Company Inc. through the sale of all of the outstanding shares of Orvana Resources U.S. Corp. today, June 17, 2014.
On closing, Orvana received a cash payment of $13-million (U.S.) and a secured promissory note in the amount of $7-million (U.S.) in respect of the remainder of the base purchase price. Amounts under the note must be repaid in certain circumstances, and the note is fully repayable no later than Dec. 15, 2014.
Orvana used $6,515,000 (U.S.) of the net proceeds received from the sale of Copperwood to repay a loan from Fabulosa Mines Ltd. and will use the remainder of the net proceeds of $6.1-million (U.S.) for general corporate purposes.
As previously disclosed, an additional consideration of up to $5-million (U.S.) may be paid by Highland in cash or shares of Highland, at Orvana's option, with $2.5-million (U.S.) payable no later than the fourth anniversary of the closing and $2.5-million (U.S.) payable following commercial production if the copper price reaches certain thresholds.
