APAC plans to start W. Sumatra iron ore production next month

Singapore-based private limited company Hudson Minerals Holdings Pte Ltd said on Monday that it has issued and paid-up capital of?$ 100,000 divided into 100,000 ordinary shares.

Hudson has executed a Conditional Share Sale & Purchase Agreement dated 29 May 2010 with the vendor of PT Denichi Amina Selaras (PT DAS), I.R. Zukriansyah to acquire an 80% share interest in PT DAS which owns the iron ore mining concession in Aie Dingin, Padang, West Sumatra.

In 6 April 2011, APAC Coal Ltd has announced that it has entered into a Convertible Loan Agreement with Hudson for a total investment of AUD 2.5 million.

PT DAS is currently in the final stages of pre-production and is currently at the stage of compensating the landowners to vacate in order for the development of the first pit and construction of access roads from the main thoroughfare to the mines to begin.

The Aie Dingin property is on schedule to begin its maiden production by end August 2011. To capitalise on the current high prices for iron ore, PT DAS has to ensure that the mining schedule is on track.

To meet its short term funding shortfall, Hudson has presented an investment opportunity to APAC Coal to partake in a short term venture and Hudson shall commit part of the proceeds from the sale of its maiden iron ore production as reward for APAC Coal?s participation in the venture.

APAC Coal will invest the AUD 350,000 required to bring the Aie Dingin mine to development, whereby Hudson shall provide the full payment of this principal amount and a further AUD 220,000 as the investment return upon receipt of its first iron ore sale or by 31st October 2011 whichever is earlier. This represents an investment return of 63% over a period of less than 4 months. (romel)