Honey Badger Exploration Announces Acquisition of Wemindji Diamond Claims in Quebec
TORONTO, ONTARIO--(Marketwired - May 26, 2016) - Honey Badger Exploration Inc. (TSX VENTURE: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 at the following address: http://media3.marketwire.com/docs/160526_Figure%201_Wemindji_diamond_claims.pdf).
The 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."
Acquisition Terms
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 diamond and gold exploration company headquartered in Toronto, Ontario, Canada with properties in Quebec 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 situated close to roads and power lines
- 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
Qualified Person
Quentin Yarie, PGeo. is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release and is responsible for overseeing all aspects of the company's exploration programs.
For more information about the Company visit 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. |
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Contact
Honey Badger Exploration Inc.
Quentin Yarie
President & CEO
(416) 364-7029
qyarie@honeybadgerexp.com
Honey Badger Exploration Inc.
Mia Boiridy
Investor Relations
(416) 364-7029
mboiridy@honeybadgerexp.com
www.honeybadgerexp.com