News Column

Honey Badger Announces Brokered Private Placement

June 27, 2014



ENP Newswire - 27 June 2014

Release date- 26062014 - TORONTO, Ontario, Canada - Honey Badger Exploration, Inc. (TUF: TSX-V) announces that it has entered into an agreement with IBK Capital Corp., under which IBK has agreed to act as agent, on a best efforts basis, for brokering a private placement of up to 20,000,000 units of Honey Badger at a price of $0.15 per Unit for aggregate gross proceeds of up to $3,000,000.

Each Unit will consist of two flow-through common shares of Honey Badger ('FT Shares'), one non flow-through common share of Honey Badger and three non flow-through common share purchase warrants ('Warrant(s)'). Each Warrant will be exercisable to acquire one common share of Honey Badger at an exercise price of $0.05 per warrant for a period of 48 months from date of issuance.

It is anticipated that the private placement will close on or before July 11, 2014, and is subject to the completion of formal documentation, receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange, and other customary conditions. Funds raised from the private placement will be used to finance an upcoming drill program and for further exploration work on the Sagar Property located in Northern Quebec. Proceeds will also be used for acquisition costs of the Sagar Property, brokerage commissions, legal fees and for general working capital purposes.

The proceeds from the sale of the FT Shares comprised in the Units will be used to incur eligible Canadian Exploration Expenses, as defined under the Income Tax Act (Canada) that will be renounced in favour of the subscribers with an effective date of December 31, 2014.

As part of the Agreement, IBK is entitled to a cash commission of 9% of the gross proceeds raised under the Offering as well as Broker Warrants (the 'Broker Warrants') equal to 10% of the aggregate Units issued. Each Broker Warrant will entitle the holder to acquire three non flow-through common shares and three non flow-through warrants at a price of $0.15 per Broker Warrant for a period of four years from the date of issuance. Each underlying warrant will be exercisable to acquire one common share of Honey Badger at an exercise price of $0.05 per warrant for a period of 48 months from original date of Broker Warrant issuance.

All securities issued under the private placement will be subject to a four month and one day hold period from the date of issuance.

About Honey Badger Exploration Inc.

Honey Badger Exploration is a gold and base-metals exploration company headquartered in Toronto, Ontario, Canada with properties in Quebec and British Columbia. The Company's common shares trade on the TSX Venture Exchange under the symbol 'TUF'.

Contact:

Honey Badger Exploration Inc.

Quentin Yarie

President & COO

Tel: (416) 364-7029

Email: qyarie@honeybadgerexp.com

Mia Boiridy

Investor Relations

Tel: (416) 364-7029

Email: mboiridy@honeybadgerexp.com

This News Release contains forward-looking statements. Forward-looking statements are statements that relate to future events. In some cases, you can identify forward-looking statements by terminology such as 'may', 'should', 'expects', 'plans', 'anticipates', 'believes', 'estimates', 'predicts', 'potential' or 'continue' or the negative of these terms or other comparable terminology.

These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: ENP Newswire


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters