VANCOUVER, BRITISH COLUMBIA--(Marketwire -05/22/12)- Huldra Silver Inc. (HDA.V, HUSIF.PK) (the "Company" or "Huldra") is pleased to announce that the Company has received a Mining Lease and a British Columbia Mines Act Permit approving a mine plan and reclamation program for the Company's Treasure Mountain Mine along with an Amended Permit approving construction and operation of a process plant at the Company's mill site in Merritt, BC.
The Mining Lease covers 335 hectares of active workings out of 7,000 acres of mineral tenures at the Treasure Mountain Mine. The mine plan for Treasure Mountain is for the removal of 60,000 tonnes per year of silver/lead/zinc ore from the underground mine and the transfer of such material offsite for processing. The Amended Permit for the Merritt mill site, approximately 70 minutes from Treasure Mountain, is for the construction and operation of a 200 tonne per day silver/lead/zinc mineral processing plant.
The Company is also pleased to announce it has entered into an amending agreement dated May 16, 2012 (the "Amending Agreement") with Waterton Global Value, L.P. ("Waterton") pursuant to which it has amended the terms of the Credit Agreement dated June 16, 2011 between the Company and Waterton. Under the terms of the Amending Agreement, Waterton has agreed to extend the first repayment date under the credit facility from May 31, 2012 to July 31, 2012, with the maturity date for the credit facility remaining as April 30, 2013. The Amending Agreement also amends the conditions necessary for drawdown of the fourth tranche of the credit facility, having a principal amount of $2.5 million, such that the Company is entitled to drawdown the fourth tranche now that the permits described above have been obtained. In consideration of the foregoing, the Company has agreed to increase the number of warrants to be issued to Waterton in connection with the drawdown of the fourth tranche from 650,000 warrants to 1,000,000 warrants, each exercisable into one common share of the Company for a period of five years.