Honey Badger Acquires 75% Interest in Prospective Polymetallic Property
28 Februar 2014 - 10:14PM
Marketwired
Honey Badger Acquires 75% Interest in Prospective Polymetallic
Property
To Exhibit at 2014 PDAC Investors Conference-Booth 2350
TORONTO, ONTARIO--(Marketwired - Feb 28, 2014) - Honey Badger
Exploration, Inc. (TSX-VENTURE:TUF) ("HBE" or the "Company") is
pleased to announce that it has entered into a purchase and sale
agreement with Energizer Resources Inc. (TSX:EGZ)(OTCQX:ENZR)
("Energizer") to acquire a 75% undivided right, title and interest
in Energizer's "Sagar" property, a property with high polymetallic
potential in Quebec's Labrador Trough region.
Key Attributes of the Sagar Property
The Sagar Property is comprised of a series of claims totaling
1,000 hectares in Nunavik, the arctic region of the Province of
Québec, Canada. The Sagar Property occurs in the Romanet Horst, a
northwest-trending 40 by 12-kilometre uplifted structural block of
sediments that is juxtaposed against younger surrounding sediments
and igneous rocks within the geologic belt known as the Labrador
Trough.
Company President and COO, Quentin Yarie, P.Geo, states, "The
Sagar Property is hosted in a crustal-scale transpressional
structure at the margin of an Archean Craton. The Property includes
zones of intense, specular hematite alteration and hosts
polymetallic mineralization zones comprised of copper (up to
30.2%), gold (up to 223 g/t), cobalt (up to 0.83%) and light rare
earth elements (La+Nd up to 0.2%). Although the property will
require focused exploration work, its size and polymetallic
potential makes it an attractive acquisition for Honey Badger."
Terms of the Agreement
In order to acquire a 75% interest in the Sagar Property, HBE
must satisfy the following terms within the specified timelines
outlined in the agreement:
- Within 15 days of the later of HBE completing a financing and
obtaining required exchange approvals, HBE shall make a cash
payment of $1,500,000 and issue of 6,750,000 common shares, which
represents 9.5% of HBE's current issued and outstanding common
shares,
- Make a further cash payment of $1,500,000, due within 18 months
of the effective date of the agreement,
- Issue additional common shares to increase Energizer's
aggregate equity interest in HBE to 15% of the issued and
outstanding shares of HBE within 15 days of the requisite
shareholder approval, with a proposal to issue up to an aggregate
of a 19.5% equity interest being tabled at the next HBE annual
general meeting of shareholders, expected to be held in June 2014.
HBE would be required to maintain Energizer's aggregate 15% equity
position for a period of 3 years from the effective date of the
agreement,
- If shareholder approval is not obtained, then HBE will pay
Energizer an additional sum of $500,000 within 18 months of the
effective date of the agreement in lieu of shares, and HBE will be
required to maintain Energizer's 9.5% equity position for a period
of 3 years from the effective date of the agreement, and
- HBE is provided with a future option to purchase the remaining
25% interest of the Sagar Property from Energizer. If exercised,
HBE will pay Energizer the sum of $1,000,000 and issue additional
shares of its common stock to increase Energizer's aggregate
interest to 19.5% of HBE issued and outstanding common stock within
15 days of requisite shareholder and regulatory approval. Energizer
has been granted a first right of refusal to maintain its equity
position by participating in any future private placements and will
also retain a 2% net smelter royalty on the property, of which 1%
of the NSR could be bought back by HBE for $1,000,000. If the
option is not exercised, than the Parties agree to enter into a
joint venture agreement consistent with industry norms for such
arrangements including a standard dilution clause. Energizer would
then also be entitled to a free carried interest on its 25%
participating interest until the delivery by HBE of a Bankable
Feasibility Study or equivalent.
This agreement is subject to the approval of the Toronto Stock
Exchange and the Toronto Venture Stock Exchange. All securities
issued in connection with this transaction will be subject to the
standard four months and one day hold period.
Honey Badger to Exhibit at 2014 PDAC - Booth 2350
The Company wishes to invite all current and potential investors
to visit Booth 2350 and take the opportunity to discuss first-hand
with senior management this latest acquisition and 2014 exploration
plans on Sagar.
The PDAC is being held from Sunday, March 2 to Wednesday, March
5 at the Metro Toronto Convention Centre, South Building. Trade
show times and details can be accessed at www.pdac.ca.
Radisson Property
HBE has terminated its option agreement with Eastmain and has no
further interests, rights or obligations with respect to this
property other than the standard procedure of providing Eastmain
with a summary of all exploration work performed on the property as
outlined in the option agreement.
Qualified Person
Quentin Yarie, P.Geo, is the qualified person in regard to the
technical data contained within this news release and will be
responsible for overseeing all aspects of the Company's exploration
programs.
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".
For more information, please visit our website at
www.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.Cautionary
Statement: Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Honey Badger Exploration Inc.Quentin YariePresident and Chief
Operating Officer(416) 364-7029(416)
364-2753qyarie@honeybadgerexp.comHoney Badger Exploration Inc.Brent
NykoliationSenior Vice President, Corporate Development(416)
364-7029(416)
364-2753bnykoliation@honeybadgerexp.comwww.honeybadgerexp.com
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