Huldra Silver (HDA.V) has been very active in updating the market over the past few weeks.
First of all, the company closed the first tranche of a debenture offering, raising almost C$10M in a debt offering maturing one year from now with a 16% coupon. It’s a convertible bond, and can be repaid in Huldra-shares at C$1.05/share at the debenture holder’s request. The coupon seems to be quite high but if it is what it takes to get this over with, so be it. The company plans to use the proceeds to repay debt and for general working capital. Huldra plans to pay Waterton Global $2M in February and March, and from April to November on $1M/month.
Huldra also released a production update, stating they shipped 127 tonnes of lead-silver concentrate and 90 tonnes of zinc concentrate in January. Based on the data provided in the presentation, we estimate these concentrate shipments contained approximately 40,000oz of silver, 300k lbs of ZnPb for a total gross metals value of $1.4M. Please note these are our own estimates and are in no way projections made by Huldra itself.
The next few months will be important for Huldra, as they are about to declare commercial production at the Treasure Mountain Project.
Disclosure: The author holds a long position in Huldra Silver Inc. Please see our disclaimer for current positions.
