Huldra Silver Inc.

Huldra Silver Inc.

August 02, 2012 08:00 ET

Huldra Silver Announces Amendment to Credit Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 2, 2012) - Huldra Silver Inc. (TSX VENTURE:HDA) ("Huldra" or the "Company") today announces that it has entered into a second amending agreement dated July 30, 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, 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 amount owing on July 31, 2012 is $nil, effectively resulting in the first repayment date under the Credit Agreement being the last business day of August, 2012, with the maturity date remaining as April 30, 2013. The Amending Agreement also reduces the amounts of the August and September 2012 payments by over fifty percent. In consideration for the amendments provided for the Company's benefit under the Amending Agreement, the Company has agreed to: (i) issue 180,000 common shares of the Company (the "Consideration Shares") to Waterton; and (ii) pay to Waterton a $200,000 cash payment (the "Cash Consideration") on the last day of the Repayment Period (as defined in the Credit Agreement).

Cheryl Brandon, Portfolio Manager at Waterton, stated, "We are very pleased with the progress that Huldra has made towards commissioning the recently constructed 200 tpd mill in Merritt, BC. We look forward to continue working with management as they transition Treasure Mountain from a development asset into a high-grade silver producer."

Ryan Sharp, President and CEO of Huldra, stated, "We are extremely pleased with the strong working relationship we have developed with Waterton. This mutually beneficial agreement allows for the completion of mill construction without any change to the mining or exploration programs."

The Consideration Shares issued to Waterton will be subject to a hold period of four months and one day 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 United States Securities Act of 1933, as amended.

About Huldra

Huldra is currently working on plans to put its Treasure Mountain Mine, located three hours east of Vancouver, BC, into development, subject to permitting and financing, utilizing a mill being constructed at the Company's mill 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

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