As a result of a review by the British Columbia Securities Commission, we are issuing the following news release to clarify our disclosure
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 15, 2015) - HUDSON RESOURCES INC. (the "Company") (TSX VENTURE:HUD)(OTCQX:HUDRF) was informed on November 23, 2015 that the Corporate Finance Department of the B.C. Securities Commission (the "Commission") had selected Hudson for a technical disclosure review. As a result of that review, a number of disclosure deficiencies were identified.
On May 25, 2015, Hudson filed a Preliminary Economic Assessment (PEA) titled "Preliminary Economic Assessment (PEA) for Specialty Alumina Production from the White Mountain Anorthosite Deposit, West Greenland" dated March 30, 2015. It was determined that certain aspects of the PEA did not comply with the requirements of NI 43-101 and Form 43-101F1. As a result of the review, Hudson has filed an amended PEA titled "Amended Preliminary Economic Assessment (Amended PEA) for Specialty Alumina Production from the White Mountain Anorthosite Deposit, West Greenland" dated December 9, 2015.
The economics of the PEA have not been changed as a result of the review (See NR2015-1 dated March 30, 2015 "Hudson Reports Robust Preliminary Economic Assessment (PEA) for Specialty Alumina Production from the White Mountain Anorthosite Deposit"). The PEA is preliminary in nature and there is no certainty that the preliminary assessment and economics will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Issues raised by the Commission include:
The Commission noted that the Company has in various press releases, presentations, and other forms of public disclosure discussed its plans on developing the White Mountain Project to mine anorthosite for the E-Glass (fiberglass) industry. Due to the commercially sensitive nature of the data when negotiating long-term purchase agreements, Hudson has chosen up to now to refrain from publishing a technical report.
The White Mountain project is 100% owned by Hudson through its subsidiary, Hudson Greenland A/S. The project is permitted for the production of high quality calcium feldspar anorthosite for the E-Glass (fiberglass) industry. Hudson plans on initiating and completing construction of the E-glass project in 2016.
In the absence of any preliminary economic assessment, pre-feasibility, or feasibility technical report and with no mineral reserves, as opposed to mineral resources, to support the permitted mining operation under development, the Commission requires additional disclosure on risk as per part 4.2(6) in the Companion Policy NI 43-101 CP (the "Instrument") to National Instrument 43-101.
As such, Hudson cautions the reader that where projects are put into production without first establishing mineral reserves, as opposed to mineral resources, supported by a technical report and completing a feasibility study such projects have historically had a higher risk of economic or technical failure.
Qualifications
Mr. John Goode, P.Eng. is a qualified person as defined by National Instrument 43-101 and is responsible for Sections 1 - 3, 13, 17.4 - 17.5, 18.5, 20.9, 21.1, 21.3 - 21.5, 21.8, 22, and 26 of the Amended PEA and has verified the disclosure in this release.
Ronald G. Simpson, B.Sc., P,Geo., President of Geosim Services Inc., is an independent Qualified Person as defined by NI 43-101 and is responsible for Section 14 of the Amended PEA and has verified the disclosure in this release.
Don Hains, P.Geo, is a qualified person as defined by National Instrument 43-101 and is responsible for Sections 1 - 3, 16, 17.1 - 17.3, 18.1 - 18.4, 20.1 - 20.8, 21.1, 21.2, 21.4 - 21.7 and 22 of the Amended PEA and has verified the disclosure in this release.
Dr. Michael Druecker is a qualified person as defined by National Instrument 43-101 and is responsible for Sections 1 - 12, 15, 19, 23 - 27 of the Amended PEA and has verified the disclosure in this release.
ON BEHALF OF THE BOARD OF DIRECTORS
James Tuer, President
Forward-Looking Statements
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this news release, including, without limitation, statements regarding the use of proceeds from the private placement, and other future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include market prices, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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