Vancouver mining company Hudson Resources Inc has entered into agreements to receive about $30 million in debt financing from the European Investment Bank and Cordiant Capital, a Canadian emerging markets investor. The proceeds of the deal will be used for development of the company’s White Mountain anorthosite project in Greenland. Hudson Resources owns 100 percent of the project, which aims to establish a mine to supply feed materials to the fiberglass industry.
Hudson Resources Announces That the European Investment Bank Approves Debt Financing of the White Mountain Project
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Feb. 7, 2017) – HUDSON RESOURCES INC. (the “Company”) (TSX VENTURE:HUD)(OTCQX:HUDRF) is pleased to announce that the Management Committee of the European Investment Bank (“EIB”) has granted preliminary approval to provide debt financing of up to US$13M (CDN$17.3M) for Hudson’s White Mountain Anorthosite Project in Greenland through its 100% owned Greenland subsidiary, Hudson Greenland A/S.
Furthermore, Cordiant Capital Inc., headquartered in Montreal, has approved lending Hudson Greenland A/S up to US$9.5M (CDN$12.7M), subject to meeting loan documentation conditions. The complete terms and conditions of both loans remain confidential at this time.
Total project capital costs, including reclamation costs and working capital are estimated at CDN$40M. Hudson is in the process of hiring an independent technical advisor that the lenders will use to confirm capital costs and monitor the construction program. Hudson is also required to complete legal documentation in accordance with the terms of the preliminary approval and raise the balance of the project costs prior to drawdown. The balance of the project capital, estimated at CDN$10M, will be injected by Hudson as equity capital into its subsidiary. To date, Hudson has provided approximately CDN$2M in construction capital to the project in 2016.
On February 2, 2017, Hudson announced that it had closed a private placement of 26.6 million units (“Units”) priced at $0.35 per Unit for total proceeds to the Company of CDN$9.3 million. The Company plans to complete a second closing in the near future for the balance of the over allotment of up to an additional 4.9 million Units for up to an additional CDN$1.7 million.
James Tuer, Hudson’s President, stated, “We are very pleased that the European Investment Bank and Cordiant Capital are prepared to invest in our project. Their involvement represents a significant vote of confidence in our plan to build and operate the mine in Greenland for the purpose of supplying calcium feldspar to the fiberglass, paints and polymer and alumina industries. We look forward to a very active year with the goal of commissioning the plant by the end of the year.”
ON BEHALF OF THE BOARD OF DIRECTORS
James Tuer, President
Hudson Resources Inc.
604-628-5002 or 604-688-3415
Photo courtesy of Hudson Resources Inc