Toronto, ON, Canada. October 6, 2011 – Honey Badger Exploration Inc. (“Honey Badger” or the “Company”) (TSX.V: TUF) announces the closing of its flow-through private placement offering (the “Offering”) of securities of the Company. Total gross proceeds received amounted to $1,402,000 for the Offering. Of this total, $902,000 was received as part of the second and final tranche.
Pursuant to the Offering, the Company issued an aggregate of 14,020,000 units (the “Units”) at a price of $0.10 per Unit. Each Unit is comprised of one “flow-through” common share and one half of one non-flow through common share purchase warrant. Each full warrant entitles the holder to purchase one common share of the Company for $0.20 per share and expires 24 months from the date of closing. Insiders of the Company subscribed for $350,000 of the total proceeds.
The Company paid fees totaling $35,000 and issued 350,000 non-transferable compensation options, with each such option entitling the holder to acquire one Unit at a price of $0.10 per Unit for a period of 24 months following closing.
All securities issued pursuant to the Offering are subject to a restricted period of four months and one day from the date of issuance. The Offering is subject to receipt of final approval from the TSX Venture Exchange.
The Company intends to primarily use the proceeds of the Offering to further exploration activities on its Radisson property in Northern Quebec.
About Honey Badger Exploration Inc.
Honey Badger Exploration is a gold and base metals exploration company headquartered in Toronto, Ontario, Canada. The Company's common shares trade on the TSX Venture Exchange under the symbol “TUF”.
A total of 1,875,000 stock options were issued to directors, officers and consultants of the Company on October 5, 2011 under the terms of the incentive stock option plan of the Company filed with the TSX Venture Exchange and approved by shareholders at the last Annual General Meeting of Shareholders of the Company held on June 23, 2011. Of this total, 910,000 stock options were issued to insiders of the Company. All of the stock options issued are exercisable at a price of $0.10 per share and expire on October 5, 2016. Any shares issued pursuant to the exercise of stock options will be subject to a four month and one day hold from the date of granting of the stock options.
For more information, please visit our website at http://www.honeybadgerexp.com
Honey Badger Exploration Inc.
Vice President of Business Development
Tel.: (416) 364-7029
Fax: (416) 364-2753
or Kirk McKinnon, President & CEO
This News Release contains forward-looking statements. Forward-looking statements are statements which 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.
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