HUDSON RESOURCES INC. (TSX-V:HUD) (OTC:HUDRF) is pleased to report that it has entered into definitive agreements with its lender, Cordiant Capital Inc. and its affiliates, with respect to the loan increase and extension originally announced on March 29, 2019.
The agreements provide for an immediate US$5 million loan facility increase, which the Company expects to receive on May 27, 2019. The additional funds are provided based on the same terms as the existing facility and the definitive agreements extend the maturity of the total loan facility from July 15, 2024 to July 15, 2025, with the first principal repayment also being deferred by one year accordingly from January 15, 2020 to January 15, 2021. In connection with this loan facility increase, the Company has issued 1,950,000 share purchase warrants, each warrant entitling Cordiant to purchase one additional share in the capital of the Company until May 23, 2024, at an exercise price of $0.45 per share, and has cancelled the 450,000 share purchase warrants issued to Cordiant in 2017 in connection with the existing facility. The securities issued, including any shares issued upon exercise of the warrants, are subject to a 4 month hold period.
The definitive agreements also provide for a further US$3 million loan facility increase to be disbursed upon the fulfillment of certain conditions. Upon the Company receiving this further loan increase it will, at that time, issue an additional 900,000 warrants having the same terms as the warrants described above.
The net proceeds of the debt financing will be used for ramping up production at the Company’s White Mountain Anorthosite Mine in Greenland, working capital and general corporate purposes.
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