Aftermath Silver Agrees Terms to Sell 100% Of The Cachinal Silver-Gold Project To Honey Badger Silver Inc.

About this update from Honey Badger Silver Inc.

[{"type":"text","content":"Aftermath Silver Agrees Terms to Sell 100% Of The Cachinal Silver-Gold Project To Honey Badger Silver Inc.Vancouver, British Columbia--(Newsfile Corp. - June 10, 2022) - Aftermath Silver Ltd. (TSXV: AAG) (OTCQX: AAGFF) (the \"Company\" or \"Aftermath Silver\") is pleased to announce that it has entered into a non-binding term sheet (the \"Term Sheet\") to sell its 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) to Honey Badger Silver Inc. (TSXV: TUF) (\"Honey Badger\"). The proposed transaction includes an exclusivity period that ends on August 15, 2022. Aftermath Silver and Honey Badger are working diligently to finalize a definitive agreement on or before this date. Ralph Rushton, President of Aftermath Silver, commented: \"We're pleased to announce the sale of the Cachinal silver-gold project to Honey Badger. Our priority is to advance the Berenguela silver-copper-manganese project in Peru, and the sale of Cachinal - which became non-core for us as our work at Berenguela progressed - represents the fastest way to potentially unlock value in the project for our shareholders. In addition to cash and share payments, we will receive production payments when commercial production starts and we will also retain an NSR.\"Transaction SummaryThe Term Sheet contemplates that Honey Badger, or an affiliate, will acquire all of the issued and outstanding shares of Minera Cachinal S.A., a wholly-owned subsidiary of Aftermath, according to the following terms:Share Payment: C$1,000,000 in shares of Honey Badger payable at closing and priced at the greater of: (i) the volume weighted average share price of the Honey Badger common shares on the TSXV for a period of thirty (30) trading days immediately preceding the date of announcement of the transaction and (ii) the maximum discounted price allowed under the policies of the TSXV. Cash Payments: a) C$400,000 payable at closing, b) C$452,000 six months after closing, c) C$400,000 on May 21, 2023 and d) C$400,000 eighteen months after closing.Royalty: Honey Badger shall grant a 1% Net Smelter Return Royalty with a complete buyback option at Honey Badger's sole discretion for a purchase price of C$8,500,000;Production Payments: Upon commencement of commer...

More updates from Honey Badger Silver Inc.