Hudson secures $30M from EIB and Cordiant Capital

Hudson Resources Inc. (TSX-V: HUD; OTCQX: HUDRF) disclosed that it has been granted preliminary approval from the European Investment Bank (EIB) for a debt financing of up to US $13 million or CDN $17.3 million for Hudson’s White Mountain Anorthosite Project in Greenland through its 100% owned Greenland subsidiary, Hudson Greenland A/S.

Cordiant Capital Inc. has also approved lending Hudson Greenland A/S up to US $9.5 million or CDN $12.7 million, subject to meeting loan documentation conditions.

Hudson’s White Mountain Anorthosite Project capital costs, including reclamation costs and working capital are estimated at CDN $40 million. Hudson is required to raise the balance of the project costs prior to drawdown. To date, Hudson has provided approximately CDN $2 million in construction capital to the project in 2016.

On February 2, 2017, Hudson closed a private placement of 26.6 million units at $0.35 per unit for gross proceeds of CDN $9.3 million. Hudson 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.

The White Mountain project offers the opportunity to quickly establish a mine to supply the fiberglass industry with feed material as a replacement for kaolin. It also has the potential to replace bauxite in the production of alumina and provide solutions for the very large mineral filler/extender market.

photo credit: Hudson Resources

Ted Liu

Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.