Honey Badger Silver Closes Final Tranche of 1.25 Million Hard Dollar and Flow-Through Non-Brokered Private Placement
Honey Badger Silver Closes Final Tranche of
1.25 Million Hard Dollar and Flow-Through
Non-Brokered Private Placement
Toronto, Ontario--(Newsfile Corp. - May 24, 2023) -
Honey Badger Silver Inc.
(TSXV: TUF) ("
Honey
Badger
" or the "
Company
") is pleased to announce the closing of the second and final tranche of its
previously announced non-brokered hard dollar and flow-through private placement (the "
Offering
"). All
dollar amounts are in Canadian funds.
Hard Dollar Offering
The hard dollar component of the Offering involved the sale of units ("
HD Units
") at a price of $0.15 per
HD Unit. Each HD Unit consists 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
sale of the HD Units will be used to finance closing obligations and exploration activities on the
Company's Cachinal project in Chile and for general working capital purposes.
In the first tranche closing on April 11, 2023, the Company sold 5,256,668 HD Units for gross proceeds
of $788,500.
In the second tranche closing, the Company sold an additional 1,447,000 HD Units for
additional gross proceeds of $217,050.
The gross proceeds from the sale of the 6,703,668 HD Units in
both closings totalled $1,005,550.
Flow-Through Offering
The flow-through component of the Offering involves the sale of units ( "
FT Units
") at a price of $0.16 per
FT Unit. Each FT Unit consists 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 comprising the HD
Units. The proceeds from the sale of the FT Units 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).
In the first tranche closing on April 11, 2023, the Company sold 1,234,375 FT Units for gross proceeds
of $197,500.
In the second tranche closing, the Company sold an additional 365,000 FT Units for
additional gross proceeds of $58,400.
The proceeds from the sale of the 1,599,375 FT Units in both
closings totalled $255,900.
An insider of the Company acquired 15,000 HD Units and 15,000 FT Units in the second tranche closing
for total gross proceeds of $4,650. The insider's participation in the Offering is 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 insider's participation in the
Offering does not exceed 25% of the market capitalization of the Company.
In connection with the Offering, the Company paid fees to eligible finders consisting of an aggregate of:
(i) $39,921.01; and (ii) 51,940 Warrants (the "Broker Warrants"). Each Broker Warrant is exercisable by
the holder to acquire one Common Share for a period of 36 months from the date of closing of the
Second Tranche of the Offering at a price of C$0.18 per share.
All securities issued pursuant to the Offering are subject to a four-month statutory hold period under
Canadian securities laws.
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
George Davis, President & CEO
Investors that are interested in further information on the Offering may also do so through the Sharechest
Connector on our website at
www.honeybadgersilver.com
, which is an innovative solution to streamline
and simplify communications with potential investors.
For more information, 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/167407