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