TORONTO, ONTARIO--(Marketwire - May 9, 2011) - Honey Badger Exploration Inc. (News - Market indicators) ("Honey Badger" or the "Company") has entered into an agreement with a wholly owned subsidiary of Entree Gold Inc. (TSX:ETG)(NYSE Amex:EGI)(FRANKFURT:EKA) to sell its interest in the HBE Blackjack property in the state of Nevada, USA. Pursuant to the terms of an option agreement between the Company and Entree dated July 20, 2009 (as amended), Entree has previously earned a 51% interest in the property and also had the right to earn up to an 80% interest in the property over a three year period. The parties have agreed to terminate the option agreement in favour of the purchase and sale agreement whereby Entrée will purchase the entire remaining 49% interest in the property.
Under the purchase and sale agreement ("The Agreement") Entree will pay the Company gross cash proceeds totaling US$650,000 and issue 550,000 of its common shares. The securities will be subject to a restricted period of four months and one day from the date of issuance.
The Agreement is subject to TSX Venture Exchange approval and acceptance by the Toronto Stock Exchange.
Administration
Target Acquisitions
Over the past 6 months, the Company has been diligently identifying and reviewing highly prospective available gold properties mainly in Canada as Canadian based mineral properties facilitate the raising and use of flow-through funds for exploration. This extensive review procedure has narrowed the search to three prospective target properties and the Company is in various stages of due diligence, negotiations and discussions with the current holders of these properties. The Company expects to complete this process by no later than June 30, 2011.
Also included as part of this review is the Company's 100% owned Limonite gold property in British Columbia for which Honey Badger recently completed an updated 43-101, and is available under the Company's profile on www.SEDAR.com.
Annual General Meeting
The Company is pleased to announce that its upcoming annual and special meeting will be held at the Company's offices, 141 Adelaide Street West, Suite 520 Toronto, Ontario, Canada on June 23, 2011 at 10:30am. Shareholders of record as of the close of business on May 16, 2011 will be entitled to vote on the resolutions put forth at this meeting. The mailing of proxy materials will occur during the latter part of May.
Board of Directors ("Board")
Mr. Michael Marchand has resigned from the Board effective immediately to pursue other interests. We would like to take this opportunity to thank Michael for his valued input and efforts over the past years and wish him well in his future endeavours. Mr. Craig Scherba, P. Geol. has kindly accepted the invitation to join the Board effective May 15, 2011. We are pleased to have Craig join our Board as his qualifications and experience will ensure the continuity of geological input and review.
About Honey Badger Exploration Inc.
Honey Badger Exploration is a gold and base-metals exploration company headquartered in Toronto, Ontario, Canada. The Company's common shares trade on the TSX Venture Exchange under the symbol "TUF".
For more information, please visit our website at http://www.honeybadgerexp.com.
This News Release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995, with respect to its exploration results, the potential for discovery of additional mineralized zones and future exploration programs and budgets. These forward-looking statements are made as of the date of this news release. Users of forward-looking statements are cautioned that actual results may vary from the forward-looking statements contained herein. While the Company has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee of the Company's future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors and assumptions include, among others, the effects of general economic conditions, the prices of gold and copper, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgments in the course of preparing forward-looking statements. In addition, there are known and unknown risk factors which could cause the Company's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company is under no obligation to update or alter any forward-looking statements except as required under applicable securities laws.
