Honey Badger Silver signs agreement for additional Thunder Bay silver properties
Honey Badger Silver has signed a Definitive Agreement with Romios Gold Resources Inc. to acquire an 80% interest and control of an additional 1,870 hectares (4,620 acres) in 87 mining claims covering historic silver properties in the Thunder Bay Silver District.
The new claims comprise substantial portions of the historic Victoria Mine and Federal Mine silver properties, plus the Lily of the Valley, Caribou and Cloud Bay prospects.
“This acquisition solidifies Honey Badger Silver’s dominant position in this historic high-grade silver camp and furthers our strategy to create a high-value, high-growth silver company leveraging our regional positioning in world-class silver districts,” said Chad Williams, Executive Chairman.
In consideration for an 80% interest in the project, Honey Badger Silver has agreed to: a) issue shares of the Company to Romios Gold for a value of C$150,000 at a price equal to the volume weighted average price of its common shares, trading on the TSXV for the thirty trading days immediately preceding the date of the transaction’s announcement, subject to the maximum discounted price allowed under the policies of the TSXV and b) free-carry all costs and expenses related to the maintenance and advancement of the project to pre-feasibility. Immediately after completion of the pre-feasibility study, the parties shall enter into a joint venture agreement to continue advancing the project towards commercial production.
In addition, Romios Gold shall grant a right of first refusal to Honey Badger Silver on its 20% remaining interest, post-transaction. If any party is diluted to a 10% or less interest in the joint venture, such party’s interest shall be converted to a 2% net smelter return royalty with an option to buyback half for C$ 2,000,000. For further details, please refer to the aforenoted press release on the Company’s website at www.honeybadgersilver.com.
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