Honey Badger Silver closes $2.24-million financing

Executive Summary

• Honey Badger Silver Inc. has closed a non-brokered private placement of units, raising aggregate gross proceeds of approximately $2.25 million.
• The company granted 2 million stock options to officers, employees, and consultants as part of the same announcement period.
• Proceeds are intended for advancing silver projects and general working capital, with insiders and Eric Sprott participating in the offering.

Key Details

• Financing Structure: Non-brokered private placement of units.
• Gross Proceeds: $2,249,999.64.
• Units Issued: 12,499,998 units.
• Price Per Unit: $0.18 CAD.
• Warrant Terms (Units): Each unit includes one common share and one common share purchase warrant. Warrants allow acquisition of one common share at an exercise price of $0.23 CAD per share for a period of 36 months from closing, subject to anti-dilution adjustments.
• Use of Proceeds: Advancing silver projects and general working capital.
• Finder’s Fees: Aggregate of $60,289.60 paid in cash.
• Finder’s Warrants: 334,946 non-transferable finders' warrants issued. Exercise price of $0.23 CAD per share, exercisable for 36 months following closing.
• Insider Participation: Insiders subscribed for 2,314,389 units for aggregate gross proceeds of $416,590. This amount was adjusted lower to accommodate high demand from other investors.
• Related Party Transaction Status: Insider subscriptions are considered related party transactions under MI 61-101. The company was exempt from formal valuation and minority shareholder approval requirements as the consideration did not exceed 25% of market capitalization.
• Regulatory Approval: Completion subject to final approval of the TSX Venture Exchange.
• Hold Period: All securities subject to a four-month-plus-one-day statutory hold period.
• Option Grant: On Jan. 9, 2026, the company granted 2,000,000 options to officers, employees, and/or consultants.
• Option Terms: Exercise price of $0.20 CAD per share, five-year term.
• Option Vesting: Equal halves vest on the date of grant and six months from the date of grant.
• Investor Participation: Eric Sprott participated pro rata to his existing ownership.

Notable Quotes

• None provided in the text.