Honey Badger Silver Closes First Tranche of $1.25 Million Hard Dollar and Flow-Through Non-Brokered Private Placement
Honey Badger Silver Closes First Tranche of
$1.25 Million Hard Dollar and Flow-Through
Non-Brokered Private Placement
Toronto, Ontario--(Newsfile Corp. - April 11, 2023) -
Honey Badger Silver Inc.
(TSXV: TUF) ("
Honey
Badger
" or the "
Company
") is pleased to announce the closing of an initial 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 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 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 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. The Company has closed an initial tranche of 5,256,668 HD Units for
aggregate proceeds of $788,500.
Chad Williams, Non-Executive Chairman of Honey Badger, acquired 3,333,334 HD Units in the first
tranche closing for total gross proceeds to the Company of $500,000. His 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 Mr. Williams'
participation in the Offering does not exceed 25% of the market capitalization of the Company.
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 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 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). The Company has closed an initial tranche of 1,234,375 FT Units for aggregate proceeds of
$197,500.
All securities issued pursuant to the Offering are subject to a four-month statutory hold period under
Canadian securities laws. The Company will issue a further news release on closing of the second
tranche of the Offering, which is expected to occur before the end of April.
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/162038