Honey Badger Silver (TSX-V:TUF) has entered a definitive agreement to acquire Canadian Zinc Corporation from Resource Capital Funds, allowing the buyer whole ownership of the Prairie Creek Silver Project (PC Silver Project) in the Northwest Territories of Canada.
The company will pay a total consideration of C$10 million ($10.26 million) in cash and C$2 million in shares and warrants for the transaction, which is expected to close in Q2 2026 on a cash-free and debt-free basis.
Honey Badger is conducting a brokered private placement to raise C$10 million to fund the cash portion of the acquisition, issuing 62.5 million subscription receipts at C$0.16 each.
Each subscription receipt will convert into one unit, comprising one share and one purchase warrant.
Warrant holders will be entitled to acquire an additional share over a three-year period. The exercise price will be determined after the announcement of the offering.
SCP Resource Finance is acting as the lead agent in the capital raise, on behalf of a syndicate of agents.
Honey Badger Executive Chairman Chad Williams says the transaction is the reflection of the team’s strength in identifying, acquiring, and developing silver projects, with the addition of a “key asset” to the company’s portfolio.
“For the first time in its history, the PC Silver Project can be evaluated through the lens of over C$100 per ounce silver,” Williams says.
“Historically zinc-focused, value is now dominated by its silver component.
“This fundamentally shifts the strategy for future resource growth and mine plan optimisation, with silver-rich zones taking priority.”
The PC Silver Project hosts a historical resource of around 240 million ounces of silver equivalent in the measured and indicated category, as well as 167 million ounces of silver equivalent in the inferred category.
The project comprises two surface leases and 12 mining leases across 7,485 hectares, with numerous economic studies completed at the site to date.
Write to Maddison Elliott at Mining.com.au
Images: Honey Badger Silver
