VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 25, 2013) - Huldra Silver Inc. (TSX VENTURE:HDA) ("Huldra" or the "Company") is pleased to announce it has closed the first tranche of its previously announced non-brokered private placement and an agreement in principle to extend its debt facility with Waterton Global Value Fund, L.P.
The Company has closed aggregate subscriptions of $1,433,650, consisting of 3,822,200 units (each, a "Unit") at a price of $0.25 per Unit and 1,593,668 flow-through units (each, a "FT Unit") at a price of $0.30 per FT Unit Each Unit consisted of one common share and one share purchase warrant, with each warrant entitling the holder to purchase one additional common share at a price of $0.35 per share for a period of three years. Each FT Unit consisted of one common share issued on a "flow-through" basis and one share purchase warrant, with each warrant entitling the holder to purchase one additional common share at a price of $0.40 per share for a period of three years.
The Company also wishes to announce that it has come to an agreement in principle with Waterton Global Value Fund, L.P. to eliminate all monthly payment obligations and delay the payment of all obligations under the Credit Facility until October 31, 2013. The Company will be required to pay a lump sum of $7,241,210 on October 31, 2013. The Company has agreed to issue an additional 2.55 million warrants at market price and can repurchase such warrants on terms to be agreed upon. The agreement is subject to approval of the TSX Venture Exchange and the preparation of definitive agreements.
As stated in the Company's filings for its quarter ended March 31, 2013, the Company continues to have a working capital deficiency. These factors represent a material uncertainty that may cast a significant doubt about the Company's ability to continue as a going concern. The Company emphasizes that, given currently depressed silver prices, it will be required to complete its previously announced financing of up to $5 million in order to continue its operations in the normal course and may require additional debt or equity in the future.
Huldra Silver is a fully integrated silver mining, exploration and development Company. The Company is currently mining at its Treasure Mountain Project, located three hours east of Vancouver, B.C, utilizing its offsite mill for processing mill feed at the Company's property outside of Merritt, B.C. The Company is also actively assessing other opportunities for acquisition and development.
On behalf of the Board of Directors
|Ryan Sharp, MBA|
|President, CEO & Director|
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.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect management's expectations regarding the continued operations, results of operations, performance and business prospects and opportunities of the Company, including statements related to finalization of definitive agreements with Waterton. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain assumptions and speak only as of the date of this release. These assumptions, which include management's current expectations, estimates and assumptions about the Company's ability to raise the necessary financing to continue its operations, the market price and demand for silver and other minerals, the Company's ability to manage its operating costs, and the Company's estimates with respect to concentrate shipments, may prove to be incorrect. A number of risks and uncertainties could cause the Company's actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions, (2) a decreased demand for or a sustained decease in the price of silver and other minerals, (3) delays in the timelines with respect to the Company's projects, (4) unexpected difficulties with the milling and the extraction of minerals from the Company's projects including that such minerals may not be economically mined and extracted, (5) unexpected interruptions and problems encountered in the operation of the milling facility, (6) factors that delay or cause difficulties in timing of shipments of concentrates by the Company, (7) inability to locate and acquire additional property interests, (8) the uncertainty of government regulation and politics in British Columbia regarding mining and mineral exploration, (9) potential negative financial impact from regulatory investigations, claims, lawsuits and other legal proceedings and challenges, (10) inability to secure financing to enable the Company to meet its business objectives and continuing operations, and (11) other factors beyond the Company's control.
There is a significant risk that such forward-looking statements will not prove to be accurate. Investors are cautioned not to place undue reliance on these forward-looking statements. No forward-looking statement is a guarantee of future results. The Company 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 required by law. Additional information about assumptions, risks and uncertainties are set out in the section entitled "Risk Factors" in the Company's MD&A filed on SEDAR at www.sedar.com.