Honey Badger Silver Closes $3 Million Over-Subscribed Non-Brokered Private Placement Anchored by Eric Sprott
TORONTO, March 18, 2021 - Honey Badger Silver Inc. (TSX-V: TUF) ("Honey Badger Silver" or the "Company") is pleased to announce that it has closed the non-brokered private placement offering (the "Private Placement" or the "Financing") announced on February 18, 2021. The over-subscribed private placement resulted in the issuance of 42.86 million units for aggregate gross proceeds of $3,000,000.
Each Unit was priced at $0.07 and consists of one (1) common share in the capital of the Company ("Common Share") and one-half of one (0.5) Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to acquire one (1) additional Common Share at a price of $0.10 for a period of three years from the date of closing of the Financing.
Mr. Eric Sprott through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 14,285,714 Units pursuant to the Private Placement for total consideration of $1,000,000.
Prior to the Offering, Mr. Sprott beneficially owned or controlled 2,500,000 common shares and 2,500,000 Warrants of the Company. Following the closing of the Private Placement, Mr. Sprott beneficially owns or controls 16,785,714 common shares of the Company and 9,642,857 Warrants, representing approximately 12.2% of the issued and outstanding shares of the Company on a non-diluted basis and approximately 17.9% of the issued and outstanding shares of the Company on a partially diluted basis assuming exercise of the Warrants.
The Units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company including on the open market or through private acquisitions or sell securities of the Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time.
A copy of the applicable early warning report will appear on the Company's profile on SEDAR and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
Chad Williams, Chairman of Honey Badger Silver acquired 10% or 4,285,714 Units pursuant to the Private Placement for total consideration of $300,000. Mr. Williams voluntarily reduced his subscription to accommodate the high demand from other investors. He now owns or controls 13,610,714 Common Shares or approximately 9.9% of the outstanding Honey Badger shares on an undiluted basis and approximately 16.5% on a partially diluted basis assuming the exercise of Warrants.
The securities issued and issuable pursuant to the Financing will be subject to a four month and one day hold period. The Company intends to use the net proceeds from the financing to advance exploration work on its Thunder Bay Silver portfolio and for general working capital purposes. The Private Placement remains subject to TSX Venture Exchange (the "TSXV") final acceptance.
Closing was concurrent with the execution of the definitive agreement relating to the acquisition of the Hy, Groundhog and Plata properties located in southeast and south-central Yukon from Strategic Metals Inc. (see news releases dated March 15 and February 11, 2021 for more details).
Live Flow-through Private Placement
Investors interested in participating in the previously announced live flow-through private placement equity financing anticipated to close on or before March 25, 2021 are requested to contact the Company at HoneyBadger@grovecorp.ca.
For more information, please visit our new website at http://www.honeybadgersilver.com.
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 silver-focused company headquartered in Toronto, Ontario, Canada with properties in Quebec and Ontario including an expansive interest in the Thunder Bay Cobalt-Silver District. In addition, the Company has a definitive agreement over three silver properties in southeast and south-central Yukon (see news release dated February 11, 2021 for more details). The Company's common shares trade on the TSX Venture Exchange under the symbol "TUF".
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; the demand for Units; the use of proceeds of the Offering; the approval of the TSX Venture Exchange relating to the Offering; 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, 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.