Silver mine near Vancouver advancing toward production

The permit also approves a 200 tonne per day silver/lead/zinc processing plant  near Merritt, which is about 70 minutes from the mine. The mine plan would entail removal of 60,000 tonnes per year of ore from the underground mine and transfer of materials to the mill site for processing.

“We are extremely excited by this announcement that will allow the Company to move the Treasure Mountain Mine Project forward,” said Huldra President & CEO Ryan Sharp. “Huldra welcomes the opportunity to become British Columbia’s next silver producer.”

Huldra discovered a 250-m silver vein in 1985 and after taking the company public in 1987, began working on a plan to put the mine into production. The company last year acquired 70.7 hectares of additional property adjacent to the 700- acre Treasure Mountain Property and constructed a 48-man camp facility to commence mining operations. It also last year acquired a 200-tpd grinding and flotation mill, mined and stockpiled material, and conducted 7000 metres of diamond drilling along with geochemical sampling.

Huldra was up by a cent on Thursday, trading at $1.26 per share. The $39 million market cap company trades between 85 cents and $1.87.

Click here for an overview of the Treasure Mountain Project

Read the full news release below:

VANCOUVER, BRITISH COLUMBIA–(Marketwire -05/22/12)- Huldra Silver Inc. (HDA.V) (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.

Ryan Sharp, President & CEO of Huldra, states, “We are extremely excited by this announcement that will allow the Company to move the Treasure Mountain Mine Project forward. Huldra welcomes the opportunity to become British Columbia’s next silver producer.”

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.

About Huldra

Huldra is currently working on plans to put its Treasure Mountain Mine, located 3 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 currently employs more than 60 people between the two properties. 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 Company’s proposed exploration plans and its plans to put the Treasure Mountain Property into production. 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, such as the Company’s ability to finance its planned exploration; the Company’s ability to source the necessary infrastructure to effect its exploration plans; current economic conditions and the state of mineral exploration and mineral prices in general. 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 exploration and development 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.

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.