TORONTO,
Aug. 8, 2013 /PRNewswire/ - U.S.
Silver & Gold Inc. (TSX: USA, OTCQX: USGIF) ("U.S. Silver & Gold"
or the "Company") has replaced the previously announced extension
on its existing US $7.9 million
senior secured credit facility with Hale Capital Partners.
The Company has signed a credit agreement with
Royal Capital Management Corporation as security agent, and certain
lenders for the issuance of CDN $8.5
million notes (the "Notes") with a three-year term. The
Notes carry a comparable annual interest rate of 12%, payable
monthly, and are secured by a first charge on all material assets
of the Company. Beginning two years following the date of issue,
the Notes will be redeemed in monthly increments of $500,000 with the balance due and payable on
maturity. The debt may be repaid at any time during the three-year
term, subject to a repayment fee. In connection with closing the
transaction, the Company will issue 10,625,000 warrants. Each
warrant allows the holder to purchase one of the Company's common
shares for a five-year term, and will be issued with an exercise
price of $0.68, subject to downward
adjustment in certain circumstances.
Unlike the previously announced term sheet with
Hale Capital Partners, this new credit agreement does not require
the Company to pay a net smelter return royalty.
The Company will further update the market on
the new credit agreement during its second quarter conference call
on Tuesday, August 13th,
2013 at 4:30 pm Eastern Standard
Time.
About U.S. Silver & Gold Inc.
U.S. Silver & Gold Inc. is a silver and gold mining company
focused on growth from its existing asset base and the execution of
targeted accretive acquisitions. U.S. Silver & Gold owns and
operates the Galena Mine Complex in the heart of the Silver Valley/Coeur d'Alene Mining District,
Shoshone County, Idaho and the
Drumlummon Mine in Lewis and Clark
County, Montana. The Galena Mine produces high-grade silver
and is the second most prolific silver mine in U.S. history
delivering over 200 million ounces to date, and the Caladay Zone is
being evaluated for bulk mining development.
For further information please see SEDAR or
www.us-silver.com.
Cautionary Statement Regarding Forward Looking
Information:
This news release contains "forward‐looking information" within the
meaning of applicable securities laws. Forward‐looking information
includes, but is not limited to, the Company's expectations
intentions, plans, and beliefs with respect to, among other things,
the Galena Complex and the Drumlummon Mine. Often, but not always,
forward‐looking information can be identified by forward‐looking
words such as "anticipate", "believe", "expect", "goal", "plan",
"intend", "estimate", "may", and "will" or similar words suggesting
future outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions, or statements about future events or
performance. Forward‐looking information is based on the opinions
and estimates of the Company as of the date such information is
provided and is subject to known and unknown risks, uncertainties,
and other factors that may cause the actual results, level of
activity, performance, or achievements of the Company to be
materially different from those expressed or implied by such
forward looking information. This includes the ability to develop
and operate the Galena and Drumlummon properties, risks associated
with the mining industry such as economic factors (including future
commodity prices, currency fluctuations and energy prices), failure
of plant, equipment, processes and transportation services to
operate as anticipated, environmental risks, government regulation,
actual results of current exploration activities, possible
variations in ore grade or recovery rates, permitting timelines,
capital expenditures, reclamation activities, social and political
developments and other risks of the mining industry. Although U.S.
Silver and Gold has attempted to identify important factors that
could cause actual results to differ materially from those
contained in forward‐looking information, there may be other
factors that cause results not to be as anticipated, estimated, or
intended. Readers are cautioned not to place undue reliance on such
information. By its nature, forward‐looking information involves
numerous assumptions, inherent risks and uncertainties, both
general and specific those contribute to the possibility that the
predictions, forecasts, and projections of various future events
will not occur. The Company undertakes no obligation to update
publicly or otherwise revise any forward‐looking information
whether as a result of new information, future events or other such
factors which affect this information, except as required by
law.
SOURCE U.S. Silver & Gold Inc.