Toronto, Ontario – May 26, 2016 - Honey Badger Exploration Inc. (TSX-V: TUF) (“Honey Badger” or the “Company”) announces that it has entered into an agreement, subject to certain terms and conditions, to acquire 29 claims located approximately 20 kilometres south-east of Wemindji, in the James Bay region of Québec. The claims totaling 1,388 hectares are located in the same fertile kimberlite area as the Company’s LG Diamonds Project (see Figure 1).
TThe Wemindji claims host a kimberlite sill (1.6 metres to 2.6 metres thick) and a kimberlite dyke that has yielded microdiamonds1. Kimberlite indicator mineral anomalies have also been found on some of the claim blocks and geological interpretations by previous operators indicate that the sill is possibly part of a much larger, and still undiscovered, kimberlite pipe on the property. In addition, the Wemindji kimberlite appears to sit in the eastern extension of the structure that hosts the magnetic anomalies of the LG Diamonds property2
Quentin Yarie, President & CEO, commented: "We are very excited to add the Wemindji claims to our portfolio. To date, only shallow drilling has been done on the property. It is possible that a larger kimberlite pipe is present at depth. Also, the favourable diamond-bearing structure at Wemindji seems to extend to our LG Diamonds Project and our team is eager to initiate an exploration program to investigate this further.”
The consideration for the acquisition is the issuance of 3,000,000 common shares of the Company and the payment of $5,000 cash to the property vendor, Resources D. Villeneuve Inc. (“RDVI”) and the issuance of 1,000,000 shares and the payment of $5,000 cash to Sparton Resources Inc. (“SRI”). Honey Badger will also grant of a 2% net smelter return (“NSR”) royalty to the property vendors (1% in favour of RDVI and 1% in favour of SRI). All, or the 2% NSR may be bought back from the vendors for $2,000,000. The vendors are at arm's length to the Company. Closing is subject to TSX Venture Exchange approval and certain other customary closing conditions.
About Honey Badger Exploration Inc.
Honey Badger Exploration is a gold and diamond exploration company headquartered in Toronto, Ontario, Canada with properties in Québec and British Columbia. The company's common shares trade on the TSX Venture Exchange under the symbol "TUF"
The Company is currently focused on the advancement of the LG Diamonds Project located in the James Bay region of Quebec:
- Total of 55 claims covering 2,765 hectares
- 9 claim blocks are centered on circular magnetic anomalies
- Each magnetic anomaly could be a potential kimberlite pipe
- Lake sediments near the magnetic anomalies contain kimberlite indicators
- The local geological environment is favourable for diamondiferous kimberlites
- Exploration agreements are in place with local First Nations
Quentin Yarie, P.Geo., is the qualified person in regard to the technical data contained within this news release and has approved the scientific and technical content of this news release.
For more information about the Company visit http://www.honeybadgerexp.com
1 Hartzler, J.R., 2007, The geological exploration of kimberlitic rocks in Québec: Unpublished Master thesis, McGill University, Montreal, 116 p.
2 Moorhead, J., Perreault, S., Berclaz, A., Sharma, K.N.M., Beaumier, M., and Cadieux, A.-M., 2000, Kimberlite et diamants dans le Nord du Québec: Géologie Québec, Ministère des Ressources Naturelles, Report PRO 2000-05, 10p.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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.
Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.