Honey Badger arranges $1.5-million private placement

Executive Summary

• Honey Badger Silver Inc. announced a non-brokered private placement of up to $1.5 million CAD through the issuance of up to 6,521,739 units at $0.18 per unit.
• Executive Chairman Chad Williams intends to participate in the offering with up to $1 million, constituting a related party transaction exempt from formal valuation and minority shareholder approval requirements.
• The company also announced an intention to grant 2 million stock options at an exercise price of $0.21 per share, subject to regulatory approval.

Key Details

• Financing Structure: Non-brokered private placement of up to $1.5 million CAD.
• Units Issued: Up to 6,521,739 units.
• Price: $0.18 CAD per unit.
• Warrant Terms: Each unit includes one common share and one common share purchase warrant. Warrants allow acquisition of one additional common share at an exercise price of $0.23 CAD per warrant share for a period of 36 months from issuance, subject to customary anti-dilution adjustments.
• Insider Participation: Executive Chairman Chad Williams intends to subscribe for up to $1 million CAD worth of units.
• Use of Proceeds: To advance the company's silver projects and for general working capital.
• Regulatory Status: Subject to TSX Venture Exchange approval and customary statutory hold periods (four months).
• Related Party Transaction: The subscription by Mr. Williams is exempt from formal valuation and minority shareholder approval under Multilateral Instrument 61-101, as the value does not exceed 25% of the company's market capitalization.
• Additional Corporate Action: Announcement of an intention to grant an aggregate of 2,000,000 stock options at an exercise price of $0.21 CAD per common share, subject to regulatory approval.
• Finders' Fees: The company anticipates paying a finders' fee in cash to certain eligible parties on a portion of the placement.