Aftermath Silver Agrees Terms to Sell 100% Of The Cachinal Silver-Gold Project To Honey Badger Silver Inc.
*FOR IMMEDIATE RELEASE June 10, 2022
(AAG2022 – NR #8)
Aftermath Silver Agrees Terms to Sell 100% Of The Cachinal Silver-Gold Project
To Honey Badger Silver Inc.
Vancouver, BC, June 10, 2022. Aftermath Silver Ltd. (the “Company” or “Aftermath Silver”) (TSX-V: AAG)
(OTCQX: AAGFF) is pleased to announce that it has entered into a non -binding term sheet (the “Term
Sheet”) to sell its 100% interest in the Cachinal De La Sierra Silver -Gold Project (the “Cachinal Project”
or “Cachinal”), located in the Cachinal de la Sierra area in Chile's Antofagasta region (Region II) to Honey
Badger Silver Inc. (TSX -V: TUF) (“Honey Badger”). The proposed transaction includes an exclusivity
period that ends on August 15, 2022. Aftermath S ilver and Honey Badger are working diligently to
finalize a definitive agreement on or before this date.
Ralph Rushton, President of Aftermath Silver commented: "We're pleased to announce the sale of the
Cachinal silver-gold project to Honey Badger. Our priority is to advance the Berenguela silver -copper-
manganese project in Peru, and the sale of Cachinal - which became non -core for us as our work at
Berenguela progressed - represents the fastest way to potentially unlock value in the project for our
shareholders. In addition to cash and share payments, we will receive production payments when
commercial production starts and we will also retain an NSR."
Transaction Summary
The Term Sheet contemplates that Honey Ba dger, or an affiliate , will acquire all of the issued and
outstanding shares of Minera Cachinal S.A., a wholly -owned subsidiary of Aftermath, according to the
following terms:
• Share Payment: C$1,000,000 in shares of Honey Badger payable at closing and priced at the
greater of: (i) the volume weighted average share price of the Honey Badger common shares
on the TSXV for a period of thirty (30) trading days immediately preceding the date of
announcement of the transaction and (ii) the maximum discounted price allowed under the
policies of the TSXV.
• Cash Payments: a) C$400,000 payable at closing, b) C$452,000 six months after closing, c)
C$400,000 on May 21, 2023 and d) C$400,000 eighteen months after closing.
• Royalty: Honey Badger shall grant a 1% Net Smelter Return Royalty with a complete buyback
option at Honey Badger’s sole discretion for a purchase price of C$8,500,000;
• Production Payments: Upon commencement of commercial production, Honey Ba dger shall
pay in cash or shares at Aftermath’s option, C$0.50 per payable silver ounce produced at the
Cachinal Project, capped at C$2,000,000 in payments.
The detailed terms and conditions of the proposed transaction will be set out in definitive
documentation to be negotiated between the parties, which will contain customary representations,
warranties and covenants of the parties as well as customary indemnities and closing conditions. There
can be no assurance that the proposed transaction will be completed on the terms contemplated, or at
all. Readers are referred to the section below entitled: “ Cautionary Note Regarding Forward -Looking
Information”.
While the Term Sheet is non-binding, the parties have agreed to a mutual break fee of C$250,000 in the
event a definitive agreement is not entered into prior to the expiry of the exclusivity period due to a
party’s action or inaction, subject to certain exceptions outside the control of the parties. The proposed
transaction will be subject to regulatory approval, including the approval of the TSX Venture Exchange
(the “TSXV”).
Qualified Person
Michael Parker, a Fellow of the AusIMM and a non -independent director of Aftermath, is a non -
independent qualified person, as defined by NI 43-101. Mr. Parker has reviewed the technical content of
this news release and consents to the information provided in the form and context in which it appears.
About Aftermath Silver Ltd.
Aftermath Silver Ltd is a leading Canadian junior exploration company foc used on silver, and aims to
deliver shareholder value through the discovery, acquisition and development of quality silver projects in
stable jurisdictions. Aftermath has developed a pipeline of projects at various stages of advancement. The
Company's projects have been selected based on growth and development potential.
• Berenguela Silver-Copper project. The Company has an option to acquire a 100% interest through
a binding agreement with SSR Mining. The project is located in the Department of Puno, in southern
central Peru. A NI 43-101 Technical Report on the property was filed in February 2021 (available on
SEDAR and the Company’s web page). The Company is currently drilling at Berenguela and planning
to advance the project through a pre-feasibility study.
• Challacollo Silver -Gold project. The Company has an option to acquire 100% interest in the
Challacollo silver -gold project through a binding agreement with Mandalay Resources ; see
Company news release dated June 27th, 2019. A NI 43 -101 mineral resource was released on
December 15, 2020 (available on SEDAR and the Company’s web page) . The Company is currently
permitting road access in anticipation of an upcoming drill program.
• Cachinal Silver-Gold project. The Company recently agreed terms to sell its interest in the Cachinal
Ag-Au project, located 2.5 hours south of Antofagasta to Honey Badger Silver Inc.
ON BEHALF OF THE BOARD OF DIRECTORS
“Ralph Rushton”
Ralph Rushton
CEO and Director
604-484-7855
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
Certain of the statements and information in this news release constitute “forward-looking information” within
the meaning of applicable Canadian provincial securities laws. Any statements or information that express or
involve discussions with respect to interpretation of exploration programs and drill results, predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but
not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”,
“projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”,
“budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and
similar expressions) are not sta tements of historical fact and may be forward -looking statements or
information.
These statements involve known and unknown risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in such forward‐looking statements. Although the
Company believes the expectations expressed in such forward‐looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and actual results or developments
may differ materially from those in the forward‐looking statements. Factors that could cause actual results to
differ materially from those in forward‐looking statements include, but are not limited to, changes in
commodities prices; changes in expected mineral p roduction performance; unexpected increases in capital
costs; exploitation and exploration results; continued availability of capital and financing; and general
economic, market or business conditions. In addition, forward‐looking statements are subject to various risks,
including but not limited to operational risk; political risk; currency risk; capital cost inflation risk; that data is
incomplete or inaccurate. The reader is referred to the Company’s filings with the Canadian securities regulators
for di sclosure regarding these and other risk factors, accessible through Aftermath Silver’s profile at
www.sedar.com.
There is no certainty that any forward‐looking statement will come to pass and investors should not place undue
reliance upon forward‐looking statements. The Company does not undertake to provide updates to any of the
forward‐looking statements in this release, except as required by law.
Cautionary Note to US Investors - Mineral Resources
This News Release has been prepared in accordance with the requirements of NI 43 -101 and the Canadian
Institute of Mining, Metallurgy and Petroleum Definition Standards, which differ from the requirements of U.S.
securities laws. NI 43 -101 is a rule develo ped by the Canadian Securities Administrators that establishes
standards for all public disclosure an issuer makes of scientific and technical information concerning mineral
projects. Canadian public disclosure standards, including NI 43 -101, differ significantly from the requirements
of the United States Securities and Exchange Commission, and information concerning mineralization, deposits,
mineral reserve and resource information contained or referred to herein may not be comparable to similar
information disclosed by U.S. companies.