SILVER (Ag) PRODUCERS

[NYBob]

U.S. Silver & Gold Inc. announces agreement to replace existing debt
08/08/2013
TORONTO, Aug. 8, 2013 /CNW/ -

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.

http://www.us-silver.com/News-and-Events/News-Releases/News-Release-Details/2013/US-Silver--Gold-Inc-announces-agreement-to-replace-existing-debt/default.aspx

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.

http://www.us-silver.com/Investors/Presentations/default.aspx

http://www.us-silver.com/





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