Huldra Silver Inc. enters into mining and milling profit share agreement
VANCOUVER, B.C., February 25, 2015 – Huldra Silver Inc. (“Huldra” or the “Company“) is pleased to announce that it has entered into a Mining and Milling Profit Share Agreement (the “Agreement”) with High Range Exploration (“High Range”). Under the Agreement, High Range plans extract mill feed from its wholly-owned Dominion Creek Property, which is located 43 kilometers northeast of the Town of Wells and about 110 kilometers east-southeast of Prince George, and then plans to ship this mill feed to Huldra for processing. Huldra intends to process the mill feed into concentrate for further shipping to a smelter or third party for sale, subject to agreements for the sale of the concentrate being entered into with smelters or third parties.
High Range intends to apply for a Bulk Sample Permit from the Ministry of Energy and Mines for British Columbia, which permit, if obtained, would allow High Range to extract up to 10,000 tonnes of mill feed from the Dominion Creek Property.
According to the Agreement, mill feed will be stored and tested on site to confirm grades greater than 0.5 oz/tonne Au equivalent (15.552 grams/tonne Au equivalent). Once a sufficient stockpile has been achieved the stockpile will be transported to Huldra’s Merritt Mill, located near Merritt, BC. The Company plans to store mill feed until approximately 4,000 – 5,000 tonnes has been stockpiled, as well as to reconfirm stockpile grades to be greater than the minimum 0.5 oz/tonne Au equivalent (15.552 grams/tonne Au equivalent) prior to commencing processing operations. Huldra will be responsible for negotiating the sale of concentrate to a smelter or third party purchaser.
Under the Agreement, High Range will be responsible for all costs associated with mining and Huldra will be responsible for all costs associated with milling operations. Upon repayment of costs, according to terms of the Agreement, the parties will equally distribute the remaining proceeds from the sales of concentrates.
Peter Espig, Chief Executive Officer, commented, “Huldra’s goal is to move towards leveraging the value of its assets and progressing towards operational cash flow. Our centrally located mill and fully-lined tailings facility has the potential to unlock value for smaller high-grade deposits in gold and silver in British Columbia.”
On behalf of the Board of Directors
“Peter Espig”
Peter Espig
CEO & Director
For additional information
Contact: (604) 647-0142
Cautionary Note Regarding Forward Looking Information:
This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information includes, without limitation, statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company or High Rise such as the statements that High Range will extract mill feed from its Dominion Property and ship this to Huldra, that Huldra will process the mill feed into concentrate and then arrange for the sale of the concentrate to smelters and third parties, that High Range will apply for a bulk sample permit, the quantity of mill feed that may be extracted under the bulk sample permit if granted, regarding the plans for storage of the mill feed, the expected grade of the mill feed, plans for allocation of costs and profit associated with mining and milling, and Huldra’s intention to progress towards operational cash flow. There are numerous risks and uncertainties that could cause actual results and the Company and High Range’s plans and objectives to differ materially from those expressed in the forward-looking information, including the inability of the parties to complete the proposed mining and milling activities as proposed or at all, that the bulk sample permit may not be granted, that the Company may not be able to successfully negotiate agreements for the sale of the concentrates, and that the mill feed may not be of a grade or quality that is sellable, and other factors beyond the Company and High Range’s control. Actual results and future events could differ materially from those anticipated in such information. 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 are expressly qualified in their entirety by this notice. Except as required by law, neither the Company nor High Range assume any 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 release.