23 September 2009 Company Announcement Office Australian Securities Exchange Limited Proposed Bauxite IPO – Australian Bauxite Limited Australian Bauxite Limited (ABx) is a wholly owned subsidiary of Hudson Resources Limited (Hudson). Hudson will transfer, sell or assign all its bauxite interests (13 granted tenements; 1 application offered and 3 applications pending) to its wholly owned subsidiary ABx upon satisfaction of the following terms and conditions:
• Hudson Shareholder Approval 1. In the event that ASX forms the view that listing rule 11.4 applies to the transaction that Hudson Shareholders approve the transaction.
• Convertible Note 2. ABx must either at its option: (a) pay Hudson the sum of $2.4 million (plus accrued interest) within 36 months; or
(b) issue $2.4 million (plus accrued interest) worth of shares in ABx to Hudson on the basis of an issue price of $0.30 per share (8,000,000 shares). The Convertible Note will carry an interest rate equal to 6% per annum payable quarterly in arrears.
• IPO 3. That ABx raises $4 million through a public offering of 20 million shares at $0.20 per share;
• Priority Offer 4. That all Hudson shareholders holding at least a Marketable Parcel of Hudson shares at the Record Date (yet to be set) will be eligible to apply for shares in a Priority Offer, whereby they will be guaranteed an allotment of 10,000 shares in ABx (upon payment of $2,000) (any further allocation will be at the discretion of the Directors);
• ASX Listing 5. That ABx is approved to be listed by the ASX. Upon completion of the IPO, Hudson will hold 71% of ABx. The target date for listing on the ASX is 14 December 2009, though this date may be subject to factors outside of the control of ABx. Also the spin-out and listing of ABx may be subject to Hudson shareholder and other regulatory approvals. Hudson directors have assembled a strong team to lead ABx:
HRS Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
