Honey Badger Silver Announces $1.25 Million Hard Dollar and Flow-Through Non-Brokered Private Placement
Honey Badger Silver Announces $1.25 Million
Hard Dollar and Flow-Through Non-Brokered
Private Placement
Toronto, Ontario--(Newsfile Corp. - March 28, 2023) -
Honey Badger Silver Inc.
(TSXV: TUF) ("
Honey
Badger
" or the "
Company
") is pleased to announce a non-brokered hard dollar and flow-though private
placement for aggregate gross proceeds of $1,250,000 (the "
Offering
").
All dollar amounts are in
Canadian funds.
Hard Dollar Offering
The hard dollar component of the Offering involves the sale of up to 6,700,000 units ( "
HD Units"
) at a
price of $0.15 per HD unit for gross proceeds of $1,000,000.
Each HD Unit will consist of one common
share of the Company and one half of a common share purchase warrant, with each whole warrant
entitling the holder to acquire one common share of the Company at a price of $0.18 for a period of 36
months from the date of closing.
The proceeds from the hard dollar offering will be used to finance
closing obligations and exploration activities on the Company's Cachinal project in Chile and for general
working capital purposes.
Flow-Through Offering
The flow-through component of the Offering involves the sale of 1,570,000 units ( "
FT Units"
) at a price
of $0.16 per FT unit for aggregate proceeds of $250,000.
Each FT Unit will consist of one common
share of the Company and one half of a common share purchase warrant, with each whole warrant
having the same terms as the warrants sold in the hard dollar offering.
The proceeds from the flow-
through offering will be used to fund exploration programs on one or more of the Company's exploration
properties located in Yukon, Quebec, and Nunavut that will qualify as "Canadian Exploration Expenses"
and, once renounced, "flow-through mining expenditures", as those terms are defined in the
Income Tax
Act
(Canada).
Chad Williams, Non-Executive Chairman of Honey Badger, has advised the Company that he intends to
subscribe for 3,333,334 HD units for total gross proceeds to the Company of $500,000.
Additional
insiders may also participate in the Offering.
Insiders' participation in the Offering constitutes a "related
party transaction" pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in
Special Transactions (
"MI 61-101"
). The Company is relying on the exemption from minority
shareholder approval requirements under MI 61-101, as the fair market value of the insiders'
participation in the Offering does not exceed 25% of the market capitalization of the Company.
The closing of the Offering is expected to occur on or before April 12, 2023 (the "
Closing Date
") and is
subject to the completion of formal documentation and receipt of all applicable regulatory approvals,
including the approval of the TSX Venture Exchange. The common shares, warrants and any common
shares issued on the exercise of warrants sold in the Offering will be subject to a four month hold period
from the closing of the Offering under applicable Canadian securities laws.
Finder's fees may be
payable to arm's length finders in connection with the Offering.
This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any of
the securities in the United States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any
state securities laws and may not be offered or sold within the United States or to U.S. Persons
unless registered under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
About Honey Badger Silver Inc.
Honey Badger Silver is a Canadian Silver company based in Toronto, Ontario, that is focused on the
acquisition, development, and integration of accretive transactions of silver ounces. The company is led
by a highly experienced leadership team with a track record of value creation backed by a skilled
technical team. With significant land holdings in southeast and south-central Yukon, including the Plata
property 180 kms to the east of the Keno Hill silver district, as well as Ontario's historic Thunder Bay
Silver District, Honey Badger Silver is positioning to be a top-tier silver company.
ON BEHALF OF THE BOARD
Chad Williams, Director and Non-Executive Chairman
For more information, please visit our website
www.honeybadgersilver.com
, or contact
Ms. Michelle Savella for Investor Relations |
| (604) 828-5886
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on
expectations, estimates, projections and interpretations as at the date of this news release. Forward-looking information in this news release
includes statements regarding: the structure and anticipated benefits of completing the acquisition of the Cachinal Project (including historical
resource estimate and possible positive effects on cash-flow); and any other information herein that is not a historical fact may be "forward-
looking information". Any statement that involves discussions with respect to predictions, expectations, interpretations, beliefs, plans, projections,
objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected",
"interpreted", "management's view", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or
"intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be
taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-
looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the
time such assumptions and estimates were made, and involves known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Honey Badger to be materially different from any future results, performance or achievements
expressed or implied by such forward-looking information.
Such factors include, but are not limited to, risks relating to capital and operating costs varying significantly from estimates; delays in obtaining or
failures to obtain required governmental, environmental or other project approvals; uncertainties relating to the availability and costs of financing
needed in the future; changes in equity markets; inflation; fluctuations in commodity prices; delays in the development of projects; other risks
involved in the mineral exploration and development industry; and those risks set out in the Company's public documents filed on SEDAR
(
www.sedar.com
) under Honey Badger's issuer profile. 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, and no assurance can be given that such events will occur in the disclosed timeframes or at all. 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.
Not for distribution to U.S. news wire services or dissemination in the United States
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/160140