Hudson to get Greenland mine back up in short order as it restructures debt, arranges capital injection
The Greenland government has given permission for Canada’s Hudson Resources to remobilise its team back to its White Mountain project, despite some Covid travel restrictions, with activities now under way to move the mine from care and maintenance to full operations.
Blasting had already resumed and the plant would start up in the next two weeks, Hudson said on Tuesday, as it also announced that its existing lenders had agreed to a $10-million capital injection and a debt restructuring.
As part of the restructuring with Cordiant Capital and Romeo Fund, $13.7-million of the existing $42-million debt would be restructured into preferred shares of the company’s subsidiary, Hudson Greenland.
The maturity date of the loan facilities would also be extended and the interest rate on a previously announced $10-million backstop facility would be reduced.
“Our lenders are now our partners and our interests are aligned in growing the mine into a successful business producing green products in numerous revenue streams. Importantly, we have retained the right to regain full ownership of Hudson Greenland in the future,” said president Jim Cambon.
“We look forward to getting the mine back up and running in short order.”
The company also owns the Sarfatoq rare earth element and niobium/tantalum exploration licence. Activities at the site will start in the coming weeks.
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