VANCOUVER, BRITISH COLUMBIA--(Marketwire -08/08/12)- NOT FOR DISTRIBUTION TO THE UNITED STATES WIRE SERVICES OR DISSEMINATION IN OR INTO THE UNITED STATES
Huldra Silver Inc. (HDA.V) ("Huldra" or the "Company") is pleased to announce that it has completed its previously announced private placement (the "Offering") as described in press releases dated June 15, 2012, June 29, 2012, July 24, 2012 and August 3, 2012. The Financing was comprised of a brokered portion (the "Brokered Portion"), which closed effective June 29, 2012, and a non-brokered portion (the "Non-Brokered Portion") that closed in various tranches between June 26, 2012 and August 7, 2012, for aggregate gross proceeds of $9,650,079.
In connection with the Brokered Portion, the Company issued an aggregate of 2,367,500 flow-through common shares (each, an "FT Share") at a price of $1.20 per FT Share and 1,225,000 common shares, issued on a non-flow-through basis (each, a "Share"), at a price of $1.08 per Share, for aggregate gross proceeds of $4,164,000. In connection with the Non-Brokered Portion, the Company issued an aggregate of 2,470,399 FT Shares at a price of $1.20 per FT Share and 2,334,815 Shares at a price of $1.08 per Share, for aggregate gross proceeds of $5,486,079.
The Company paid finder's fees in connection with the Offering consisting of cash commissions equal to 8.0% of the gross proceeds raised under the Offering and the issuance of that number of non-transferable broker warrants (the "Broker Warrants") equal to 8.0% of the number of FT Shares and Shares sold pursuant to the Offering. All Broker Warrants are exercisable into one Share at a price of $1.08 per Share for two years from their respective dates of issuance.
The aggregate gross proceeds from the Offering will be used to advance the Treasure Mountain project towards production, for resource exploration, for debt repayment and for general working capital purposes. The gross proceeds received by the Company from the sale of the FT Shares will be used to incur eligible Canadian Exploration Expenses for purposes of the Income Tax Act (Canada) and an amount equal to such gross proceeds will be renounced in favour of the holders with an effective date of no later than December 31, 2012.
All securities sold in connection with the Offering are subject to a hold period of four months and one day from their respective dates of issuance under Canadian securities laws and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933, as amended. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, the securities in any state where such offer, solicitation, or sale would be unlawful.
On behalf of the Board of Directors of Huldra Silver Inc.
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.