Huldra Silver Inc. Announces Entry Into $10,000,000 Credit Facility
17 June 2011 - 11:00PM
Marketwired
Huldra Silver Inc. (TSX VENTURE: HDA) (the "Company" or "Huldra")
today announces that it has entered into a credit agreement dated
June 16, 2011 (the "Credit Agreement") with Waterton Global Value,
L.P. ("Waterton") pursuant to which Waterton has agreed to make a
$10,000,000 credit facility (the "Credit Facility") available to
the Company. The Credit Facility may be drawn down, at the
Company's option, in up to four advances, with the first advance
consisting of $3,000,000, the second advance consisting of
$2,000,000 and each of the third and fourth advances consisting of
$2,500,000. A closing fee of $100,000 was paid to Waterton upon the
execution of the Credit Agreement. Provision of any advances under
the Credit Facility by Waterton will be subject to the satisfaction
or waiver of certain conditions as set out in the Credit Agreement.
The advances may be drawn down by the Company at any time until
May 31, 2012 and all amounts outstanding must be repaid by April
30, 2013. Repayment amounts are subject to adjustment based on the
spot price of silver as set out in the Credit Agreement.
In connection with each advance, the Company has agreed to pay
Waterton a structuring fee in an amount equal to 1% of the
principal amount of such advance. The Company has also agreed to
issue Waterton up to 2,200,000 share purchase warrants in
connection with the first, third and fourth advances. 900,000
warrants were issued today in connection with the first tranche and
an additional 650,000 will be issued upon each of the third and
fourth advances, if drawn down. Each of the 900,000 warrants issued
to Waterton today is exercisable into one common share of the
Company at a price of $1.28 per share until June 16, 2016, subject
to certain price adjustments. The exercise prices of any additional
warrants issued will be tied to the market price of the Company's
common shares on the date prior to such issuance.
Bayfront Capital Partners Ltd. ("Bayfront") acted as placement
agent in connection with the Credit Facility in consideration for a
placement fee equal to 1% of the principal amount of any advance
drawn down and common shares of the Company having an aggregate
value of $200,000, with shares having a market value of $100,000
being issued in connection with the first advance and shares having
a market value of $50,000 to be issued in connection with each of
the third and fourth advances, if applicable.
All securities issued to Waterton or Bayfront in connection with
any draw down under the Credit Facility will be subject to a four
month hold period under applicable securities laws.
The Credit Facility will be used to further development of
Huldra's Treasure Mountain Project and for general working capital
purposes.
About Huldra
Huldra is currently working on plans to put its Treasure
Mountain Project, located 3 hours east of Vancouver, BC, into
development, subject to permitting and financing. 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
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 Credit Facility, including: (i) the
number of warrants and fees that may be paid; (ii) the number of
advances that may be drawn down; and (iii) proposed uses for the
Credit Facility. 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 expectations, estimates and assumptions
which 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 in North America and internationally; (2) failure of the
Exchange to provide final approval for the debt facility; and (3)
other factors beyond the Company's control. 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.
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 news release.
Contacts: Huldra Silver Inc. Ryan Sharp President, CEO &
Director 604-647-0142 ryan@huldrasilver.com / IR@huldrasilver.com
www.huldrasilver.com
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