Williams ups stake in Honey Badger Silver to 27%

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Honey Badger Silver Inc. [TUF-TSXV] said its non-executive Chairman Chad Williams, has increased his stake in the company to almost 27% from 19.50% by acquiring 4.43 million common shares for $0.06 per share.

Honey Badger said Williams would hold 35.73% of the issued and outstanding shares if all his share purchase warrants and stock options were exercised.

The company said Williams has an extensive background in capital markets and business management. He is the founder and Chairman of Red Cloud Mining Capital, Blue Thunder Mining Inc., and Sharechest.

He was previously a mining analyst with TD Bank and other Canadian brokerage firms in Toronto.

Honey Badger shares advanced on the news, rising 7.1% or $0.005 to $0.075. The shares trade in a 52-week range of 17 cents and $0.05.

Honey Badger is a Toronto-based exploration company with projects located in historic silver districts, including the Plata high grade silver project located 165 kilometres east of the Yukon’s Keno Hill district. Its assets also include an expansive interest in the Thunder Bay Cobalt-Silver District in northwestern Ontario.

The company added to its portfolio of silver assets last year by agreeing to acquire SSR Mining’s Sunrise Lake silver project in the Northwest Territories about 130 kilometres northeast of Yellowknife.

The company said Sunrise Lake contains an historic silver resource of approximately 12.8 million ounces in the indicated category and 13.9 million ounces in the inferred category. “This is a significant step in Honey Badger’s continuing strategy to acquire quality silver projects at a low cost in favourable and low-cost jurisdictions.

The Sunrise Lake deposit is a volcanogenic massive sulphide deposit consisting of a steeply-dipping lens three to four metres thick, 120 metes wide and 190 metres long. The project consists of six contiguous mining leases covering 1,621 hectares.

Under the agreement, SSR Mining is retaining a 4.0% net smelter royalty on any future production from the project. Half (2.0%) of the NSR can be repurchased by Honey Badger at any time prior to commencement of construction at the project for US$10 million. But the company has no obligation to do so.

“Our corporate strategy is based on our thesis that the price of silver is poised for an increase because of increased silver demand for solar panel use and as a financial asset coupled with challenging mine supply issues,’’ said Honey Badger CEO Dorian (Dusty) Nicol.

“In addition to the historical resource defined to date, we believe the project has exploration potential, is being acquired for no cash consideration and has minimal holding costs,’’ he said. “Significant work was done by previous owners defining current resources, including the completion of over 20,000 metres of diamond drilling.’’

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