Huldra Silver Is Pleased to Provide an Update on Its Mill Commissioning and an Amendment to Credit Agreement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 1, 2012) - Huldra Silver Inc. (TSX VENTURE:HDA) ("Huldra" or the "Company") is pleased to provide an update on the commissioning of its 200 tonne per day silver, lead, and zinc crushing, grinding and flotation mill in Merritt, BC. The commissioning began on August 7, 2012 and, since then, the equipment and processing has been undergoing testing and fine-tuning. The Company is currently testing the mill by processing a 5,000 tonne stockpile of mill feed from development work in 1988 at its 100% owned Treasure Mountain Mine. Huldra continues to ramp up production and the mill is currently operating at a 24 hour a day, five days a week schedule, with two days a week of maintenance and upgrades. The Company expects to transition to a seven days a week operating schedule during the month of November and plans to begin shipping lead/silver concentrate to a smelter on a regular basis the week of November 5, 2012 under the terms of its previously announced lead concentrate purchase agreement.
The Company is also pleased to announce that it has entered into a third amending agreement dated October 24, 2012 (the "Amending Agreement") with Waterton Global Value, L.P. ("Waterton") pursuant to which it has further amended the terms of the Credit Agreement dated June 16, 2011, as amended May 16, 2012 and July 30, 2012, between the Company and Waterton. Under the terms of the Amending Agreement, Waterton has agreed to amend the repayment terms of the Credit Agreement such that the repayment amounts owing on October 31, 2012 and November 30, 2012 have been reduced by more than 50% with the maturity date remaining as April 30, 2013. There is no cash payment or issuance of shares required under the Amending Agreement at this time, however the interest has been re-calculated in the context of the original Agreement.
Under the terms of the Amending Agreement, Waterton has also agreed to provide funding for 80% of the value of concentrates delivered to the smelter on a spot basis for a 2% fee. This funding may be used to provide any working capital requirements of the Company while it awaits payment under the lead/silver purchase agreement.
Ryan Sharp, President and CEO of Huldra, stated, "On behalf of all the stakeholders involved in the Company I would like to thank Waterton for all for their assistance in achieving this major milestone. We began this relationship prior to having broken ground or being permitted at either the Treasure Mountain Mine or the Merritt Mill and have seen this project through to production together. I would also like to personally thank all of the directors, officers, employees, consultants, contractors, and shareholders that have supported us throughout."
The Company also wishes to announce that 380,000 stock options have been granted to certain new employees and consultants under the Company's stock option plan. The stock option plan was re-approved by shareholders on August 7, 2012 and is available on SEDAR.
Huldra is currently mining at its Treasure Mountain Project, located 3 hours east of Vancouver, BC, utilizing an offsite mill being commissioned for processing mill feed at the Company's property outside of Merritt, BC. The Company is also actively assessing other opportunities for acquisition and development.
On behalf of the Board of Directors of HULDRA SILVER INC.
Ryan Sharp, MBA, President, CEO & Director
Disclaimer for Forward-Looking Information
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events related to the Company's commissioning of its mill, the timing of progress to a seven day operating schedule at the mill, the timing for shipments of lead/silver concentrates to its smelter and future funding that may be provided by Waterton. Such forward-looking information can include statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. These risks and uncertainties include that factors may arise which delay the Company's expected timing with respect to operation of the mill or the Company's ability to ship concentrates at the times and in the amounts expected; economic conditions may arise that prevent the Company from obtaining funding from Waterton or that have an adverse effect on the Company's operations generally, risks related to a decrease in mineral prices generally; and other factors beyond the Company's control. These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. The Company can offer no assurance that its plans will be completed in the time expected or at all. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
FOR FURTHER INFORMATION PLEASE CONTACT:
Huldra Silver Inc.
Ryan Sharp, MBA
President, CEO & Director
firstname.lastname@example.org or IR@huldrasilver.com