Honey Badger Silver Announces Mutually Agreed Time Extension for Closing of Yukon Acquisition
May 04 2021 - 9:30AM
Honey Badger Silver Inc. (TSX-V: TUF) (“Honey Badger Silver” or the
“Company”) reports an agreement with Strategic Metals Ltd. for an
extension of up to 30 days for the closing of the previously
announced acquisition of 100% interest in the Yukon Silver
properties which is now anticipated to close by May 31, 2021 (see
news releases dated February 11 and March 15, 2021 for more
details). The time extension is due to Covid-19 related local
administrative delays.
The Yukon properties present a strategic
complement to Honey Badger Silver’s Thunder Bay portfolio and
position the Company to be a top-tier silver pure play vehicle for
exceptional growth.
In conjunction with the acquisition, the
non-brokered flow-through private placement of up to $1.5 million
(the "Offering") is being extended under the same terms as
announced on March 9, 2021. The flow-through Offering will consist
of 10 million shares (the “Flow-Through Shares”) that qualify as
flow-through shares for purposes of the Income Tax Act (Canada), at
a price of $0.15 per Flow-Through Share.
The net proceeds of the Offering are planned to
be used to fund the Company’s exploration programs.
Proceeds from the sale of the Offering to
eligible investors in Canada will be used to incur eligible
"Canadian exploration expenses" that will qualify as "flow-through
mining expenditures" as such terms are defined in the Income Tax
Act (Canada), and as “eligible Ontario mining expenditures” within
the meaning of the Taxation Act (2007) (collectively, the
"Qualifying Expenditures").
All Qualifying Expenditures will be renounced in
favour of the subscribers of the Flow-Through Shares effective
December 31, 2021. The securities under the Offering will be
offered to “accredited investors” under National Instrument 45-106
– Prospectus Exemptions.
Investors interested in participating in the
flow-through Offering may so indicate through the Sharechest
Connector on Honey Badger’s website,
www.honeybadgersilver.com.
The closing of the Offering is expected to occur
on or before May 31, 2021 (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 securities to be issued under the Offering
will be subject to a statutory hold period of four months and one
day from the Closing Date.
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 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 (as
such term is defined in Regulation S under the U.S. Securities Act)
unless registered under the U.S. Securities Act and applicable
state securities laws or an exemption from such registration is
available.
For more information, please visit our website above, or
contact: Ms. Christina Slater at cslater@honeybadgersilver.com.
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.
About Honey Badger Silver
Inc.Honey Badger Silver is a Canadian Silver company based
in Toronto, Ontario 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 a
dominant land position in Ontario’s historic Thunder Bay Silver
District and advanced projects in the southeast and south-central
Yukon, Honey Badger Silver is positioning to be a top tier silver
company.
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. The information in this news release about the closing of
the Offering (if at all) and the closing of the acquisition; the
demand for Flow-Through shares (if any); the use of proceeds of the
Offering; the approval of the TSX Venture Exchange relating to the
Offering and the acquisition; 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 Silver 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 the Offering and the acquisition;
volatility in the trading price of common shares of the Company;
risks relating to the ability of the Company to obtain required
approvals, complete definitive documentation and complete the
Offering on the terms announced; ability of the Company to complete
further exploration activities; the results of exploration
activities; 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
Silver'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.
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