Honey Badger Exploration Announces TSXVE Approval of Acquisition of Barite Assets in Québec; Changes to Financing
NEWS RELEASE
July 24, 2017
Honey Badger Exploration Announces TSXVE Approval of Acquisition of Barite
Assets in Québec; Changes to Financing
Toronto, Ontario - July 24, 2017 – Honey Badger Exploration Inc. (TSX -V: TUF) (“Honey
Badger” or the “Company”) received TSXVE approval to acquire the three (3) B arite-Zinc
Assets located in Québec (the “ Mineral Properties ”). The Company has also received
conditional approval from the TS X Venture Exchange (the “ TSXVE”) of the previously
announced private placement financing (see the press release of the Company dated June
26, 2017) subject to certain amendments as detailed below.
Quentin Yarie, President & CEO, commented: " Approval of the purchase of the three barite
assets is the first step for Honey Badger to begin undertaking a campaign to confirm all
historic resource data, prioritize targets, and begin a field program.”
About Honey Badger’s Barite-Zinc Assets
The property package to be acquired by the Company consists of 3 separate claim blocks in
Quebec - two, with historic resources as detailed in the June 10, 2017 release.
The Robex Polymetallic Deposit
• Historical pit-constrained resources estimated in 19881:
o 0.95 Mt @ 46.5% BaSO 4, 1.9% Zn, 0.6% Pb, 0.15% Cu, 0.11% Cd and
13.5 g/t Ag;
• Additional estimated historical resources1:
o 0.35Mt classified as probable and possible reserves at similar grade
for all metals and BaSO4;
• The Deposit remains open along strike and at depth
Nicholas-Rioux #3 Showing
• Located 4 km from Mine Roy -Ross with historic estimated resources1 of 130
Kt @ 42.5% BaSO4
Woodbridge Deposit1
• Recognized for the purity of the barite forming the mineralization
• Grade of the vein estimated in 1953 at 98.2% BaSO4
• Grade of a 100lbs metallurgical sample of 93.5% BaSO4
• Main zone traced in 1953 over 200 feet along strike, has a maximum
thickness of 4 feet and continues to a depth of at least 25 feet
• Metallurgical testing indicates low contaminant content
• Without treatment, meets the specifications for Oil & Gas industry
• With flotation and gravimetric separation, meets specification for glass and
paint industry
1No qualified person has done enough work to classify this historical estimate as current
mineral resources or mineral reserves and the Company is not treating the historical
estimate as current mineral resources or mineral reserves . As most of the historic core and
drill logs used to estimate the historic resourc e of the Robex Deposit are presumed to be
lost, the deposit needs to be entirely re-drilled and a new resource estimated to confirm the
historic resource estimate.
Financing
The Company’s previously announced private placement financing (the “Offering”) to raise
aggregate gross proceeds to the Company of up to $1,000,000 through the sale of a
combination of flow-through units (the “FT Units”) and non-flow units (the “Non-FT
Units”) has been conditionally approved by the TSXVE, subject to certain amendments
requested by the TSXVE as set out below.
Each FT Unit will be priced $0.06 per FT Unit and will consist of one “flow through”
common share of the Company and one half of one non-flow-through common share
purchase warrant, with each such full warrant exercisable to acquire one common share
for a period of three years following the issuance thereof at a price of $0.10 per share. Each
Non-FT Unit will be priced at $0.05625 per Non-FT Unit (and not $0.05 as previously
announced) and will consist of one common share of the Company and one full share
purchase warrant, with each such warrant exercisable to acquire one common share for a
period of three years following the issuance thereof at a price of $0.075 per share (and not
$0.08 per share as previously announced).
It is anticipated that the Offering will close on or before August 4, 2017 (or such other date
as the Company may determine), and is subject to the satisfactory completion and receipt
of formal documentation, receipt of all necessary regulatory approvals, including the
approval of the TSXVE, and other customary conditions. The proceeds of the sale of the FT
Units will be used to incur eligible Canadian Exploration Expenses, as such term is used
pursuant to the Income Tax Act (Canada). The proceeds of the sale of the Non-FT Units will
be used to advance the Company’s projects and for working capital purposes.
Any securities pursuant to the Offering issued in connection with the Offering will be
subject to a four month hold period. The relative combination of FT Units and Non-FT Units
to be sold in the Offering will be determined and allocated by the Company.
Qualified Person
Martin St. Pierre , P.Geo., is the qualified person in regard to the technical data contained
within this news r elease and has approved the scientific and technical content of this news
release.
About Honey Badger Exploration Inc.
Honey Badger Exploration is a gold and base- metals exploration company headquartered
in Toronto, Ontario, Canada with properties in Que bec. The Company's common shares
trade on the TSX Venture Exchange under the symbol “TUF”.
About Barite
Barite is a mineral composed of barium sulfate (BaSO4). It receives its name from the Greek
word "barys" which means "heavy." Barite’s high specific gravity makes it suitable for a
wide range of industrial, medical, and manufacturing uses . 80% of the barite produced
globally is used for drilling in the oil and gas industry.
The Global Barite Market has been evaluated to be rapidly growing and is expected to grow
tremendously by 2022 1. Increasing production in the oil and gas sector will continue to
drive the demand for barite. While India and China hold a dominant position in the barite
supply, there is an increased focus on discovering and developing new barite resources
across the world.
For more information, please visit our website at http://www.honeybadgerexp.com.
Or contact:
Quentin Yarie, President & CEO, (416) 364-7029, [email protected]
or
Mia Boiridy, Investor Relations, (416) 364-7029, [email protected]
Neither 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.
This News Release contains forward -looking statements. In some cases, you can identify forward -looking
statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”,
“predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These
statements are only predictions and involve known and unknown risks, uncertainties and other factors that may
cause our or our industry’s actual results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or achievements expressed or implied by these
forward-looking statements.
Although the Company believes that the assumptions and factors used in preparing the forward -looking
information in this news release are reasonable, undue reliance should not be placed on such information, which
only applies as of the date of this news release. The Company disclaims any intention or obligation to update or
revise any forward -looking information, whether as a result of new information, future events or otherwise,
other than as required by law.