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Aftermath Silver Ltd Announces Amended Terms for the Cachinal Silver-Gold Project Acquisition in Chile and Grants Stock Options
Vancouver, British Columbia--(Newsfile Corp. - January 11, 2023) - Aftermath Silver Ltd. (TSXV: A...
About this update from Aftermath Silver Ltd.
[{"type":"text","content":"Aftermath Silver Ltd Announces Amended Terms for the Cachinal Silver-Gold Project Acquisition in Chile and Grants Stock OptionsVancouver, British Columbia--(Newsfile Corp. - January 11, 2023) - Aftermath Silver Ltd. (TSXV: AAG) (OTCQX: AAGFF) (the \"Company\" or \"Aftermath Silver\") is pleased to announce that amendments have been made to the non-binding term sheet (the \"Term Sheet\") signed on June 9, 2022, with Honey Badger Silver inc. (\"Honey Badger\") (see NR dated June 10, 2022), with regards to the proposed acquisition by Honey Badger of a 100% interest in the Cachinal De La Sierra Silver-Gold Project (the \"Cachinal Project\" or \"Cachinal\"), located in the Cachinal de la Sierra area in Chile's Antofagasta region (Region II).Amended Payment Terms:On closing Honey Badger will pay to Aftermath C$652,000 in cash and issue common shares of Honey Badger to Aftermath having a value of C$1,000,000 at a deemed price per share equal to the greatest of: (a) C$0.05 per share(1); (b) the volume weighted average price (\"VWAP\") of Honey Badger's common shares trading on the TSX Venture Exchange (the \"TSXV\") for the thirty (30) day period immediately preceding the closing; and (c) the maximum permitted discount to \"market price\" under the policies of the TSXV. Assuming a deemed price of $C$0.05/share, it is anticipated that Aftermath would hold approximately 10% of the issued and outstanding shares of Honey Badger following closing. Honey Badger shall have the option to make the following payments in cash or by issuance of common shares of Honey Badger at a deemed price per share equal to the greatest of: (a) C$0.05 per share(1); (b) the VWAP of Honey Badger's common shares trading on the TSXV for the thirty (30) day period immediately preceding the date on which the payment is due; and (c) the maximum permitted discount to \"market price\" under the policies of the TSXV:C$200,000 by May 31st, 2023; C$400,000 by March 31, 2024; and C$400,000 by September 31, 2024.Upon the commencement of commercial production at the Cachinal Project, Honey Badger shall pay in cash or shares at Aftermath's option, C$0.50 per payable silver ounce produced at the Cachinal Project, up to an aggregate of C$2,500,000. Honey Badger will also grant Aftermath a 1% net smelter returns royalty with a complete buyback option at Honey Badger's sole discret...