The loan bears a coupon of 12% and will mature nine months after the first draw down, the Longueil, Quebec-based company said Tuesday. It expects closing and the first drawdown on Friday.

Highland, with a current market capitalisation of C$26 million, said it intended to appoint a financial advisor to undertake a strategic review process.

The company also said it had extended the longstop date to complete its acquisition of the White Pine property from First Quantum Minerals to August. The acquisition remains subject to several conditions, including releasing a First Quantum subsidiary from remediation and closure obligations of the historical White Pine mine site and replacing the relevant environmental bond.

The company is focused on copper assets in Michigan's Upper Peninsula region, including the feasibility-stage Copperwood project, which it acquired from Orvana Minerals in June 2014.