Huldra Silver Announces Amendment to Credit Agreement

Tue Jan 29, 2013 8:29pm EST

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Huldra Silver Inc.

January 29, 2013 - 08:29:14 PM

Huldra Silver Announces Amendment to Credit Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 29, 2013) - 

NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN OR
INTO THE UNITED STATES.

Huldra Silver Inc. ("Huldra" or the "Company") (TSX VENTURE:HDA) is pleased to
announce that it has entered into a fourth amending agreement dated January
29, 2013 (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, 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 maturity date has been
extended from April, 2013 to November, 2013 and the repayment amounts, other
than for January, 2013, have been reduced accordingly. The payment for
January, 2013 is $1,921,039 and is due on or before February 8, 2013. As
consideration for the amendment, the Company has agreed to pay a restructuring
fee of $125,000 per month for the remainder of the term subject to a minimum
restructuring fee of $750,000. 

In connection with the Amending Agreement, the Company also anticipates that
the final payment to be made under the terms of the Strategic Acquisition
Agreement dated March 30, 2011 will be extended and made in three equal
payments, pursuant to the terms of an amending agreement to be entered into by
the Company (the "Craigmont Amending Agreement"), as follows:



(i)    $1,000,000 on or prior to January 31, 2013;                          
(ii)   $1,000,000 on or prior to February 28, 2013; and                     
(iii)  $1,002,051 (less any payments made by the Company derived from       
       revenues from the exploitation of the gravel resource on the         
       Craigmont Property) on or prior to April 1, 2013.                    



As consideration for this amendment, the Company has agreed to pay 5% interest
on the second and third payments set out above, which interest is included in
the last payment set out above.

In order to raise the funds necessary to make the upcoming payments under the
Credit Agreement and the Strategic Acquisition Agreement and for general
working capital purposes, the Company intends to complete a private placement
of unsecured convertible debentures (the "Debentures") in the aggregate
principal amount of up to $6,000,000. The principal amount of the Debentures
will mature twelve (12) months after issuance (the "Maturity Date") and accrue
interest at 16% per annum payable on the Maturity Date. 

The principal amount of the Debentures and any accrued but unpaid interest
thereon will be convertible, at the option of the subscriber, into common
shares of the Company (each, a "Share") at a price of $1.35 per Share, subject
to adjustment. The Company will have the right to prepay, upon ten (10) days'
notice (the "Notice Period"), all or part of the principal amount of any
Debenture, and any accrued but unpaid interest thereon, together with payment
of a prepayment penalty of 5% of the principal amount being prepaid.
Subscribers will have the right to convert the principal amount and any
accrued but unpaid interest of the Debentures during the Notice Period. 

Ryan Sharp, President and CEO of Huldra, stated, "We are pleased to have come
to these agreements with our lenders during this transformational period for
the Company. This helps to provide certainty and clarity to our goal of being
Canada's next primary silver producer." 

Copies of the Amending Agreement and the Craigmont Amending Agreement will be
filed under the Company's profile on SEDAR at www.sedar.com.

None of such securities have been or will be registered under the United
States Securities Act of 1933, as amended (the "1933 Act"), and none of them
may be offered or sold in the United States absent registration or pursuant to
an applicable exemption from the registration requirements of the 1933 Act and
applicable state securities laws.

About Huldra

Huldra is currently mining at its Treasure Mountain Project, located three
hours east of Vancouver, BC, utilizing an offsite mill 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

FOR FURTHER INFORMATION PLEASE CONTACT: 
Huldra Silver Inc.
Ryan Sharp, MBA
President, CEO & Director
(604) 647-0142
(604) 647-0143 (FAX)
IR@huldrasilver.com
www.huldrasilver.com




        

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