Hudson Resources has entered into definitive agreements with its existing lender, Cordiant Capital, and its new lender, Romeo Fund – Flexi,to increase its credit facility by $3 million.
Pursuant to the agreements, which provide for the assignment by Cordiant to Romeo of Cordiant’s commitments in respect of the third tranche, Romeo will fund the $3 million loan facility increase.
The additional funds are provided based on the same terms as the existing facility and the definitive agreements. In connection with this loan facility increase, the company has issued 900,000 share purchase warrants, each warrant entitling Romeo to purchase one additional share in the capital of the company until May 23, 2024. The securities issued, including any shares issued upon exercise of the warrants, are subject to a four month hold period.
The net proceeds of the debt financing will be used for operations at the company’s White Mountain Anorthosite Project in Greenland, including ramping up of production, shipping, working capital, and general corporate purposes.
