Huldra Silver announced it has obtained a secured debtor-in-possession loan from Waterton Global Value, the primary secured creditor of the company, pursuant to a credit agreement dated August 15, 2013.

The DIP Loan was authorized by an initial order of the Supreme Court of British Columbia pursuant to the proceedings under the Companies’ Creditors Arrangement Act (Canada) previously announced in the company’s news release dated July 26, 2013.

Garth Braun, chief financial officer and director, stated: “The company’s strong relationship with Waterton has resulted in the parties working collaboratively during the CCAA process and in achieving the DIP Loan. The company will have to work collaboratively with all other stakeholders during the CCAA process in order to maximize value for all stakeholders.”

Under the terms of the credit agreement, the DIP Loan will be advanced by Waterton by way of a first advance, which will be advanced in several tranches, of up to $2.3 million in aggregate, and a second advance (at Waterton’s sole absolute discretion) of up to $2.5 million in aggregate upon receipt by Waterton of a comprehensive plan of operations from the company for the Treasure Mountain Property that is satisfactory to Waterton and its advisors, all on the terms and conditions set out in the credit agreement.

The company also announced it intends to enter into an agreement with Haywood Securities whereby Haywood would provide strategic advisory services to the company, including the identification of alternatives to resolve the company’s current debt obligations and to unlock value from the company’s assets.