United Silver Corp. (DB:UM8) announced that it intends to conduct a private placement of secured convertible notes for gross proceeds of $6,000,000 on November 18, 2011. The note will carry a coupon of 5% per annum. The principal amount of the loan shall be repayable in 18 equal monthly installments commencing 18 months from the date of advance of the loan, which is intended to close within 30 business days. The notes would be convertible into common shares at a price of $0.50 per share. The term sheet also calls for a commitment fee and a number of warrants issued to the lender which would have an exercise price of 35% above market. The company has agreed to appoint to its board a person nominated by the lender. The funding will involve the participation of Hale Capital Partners LP, a fund managed by Hale Capital Partners. On February 1, 2012, United Silver Corp closed the transaction. The company raised gross proceeds of $6,300,000 in the transaction. The company signed the securities purchase agreement with the investor. The company also issued 5,040,000 warrants in the transaction. Each whole warrant will entitle the holder to purchase an additional common share at an exercise price of $0.42 per share for a period of four years from the date of issuance. Davies Ward Phillips & Vineberg LLP served as legal advisor to Hale Capital Partners for the transaction.