Bunker Hill Announces Closing of Fifth Tranche of the Silver Loan Facility

Rhea-AI Summary

Bunker Hill Mining (OTCQB:BHLL) has closed the fifth tranche of its silver loan facility with Monetary Metals Bond III , securing US$1,478,847 (equivalent to 50,198 ounces of silver). This follows previous tranches totaling approximately US$30.36 million, representing over 1 million ounces of silver equivalent.

The company will issue 100,397 non-transferable bonus share purchase warrants to Monetary Metals, exercisable at C$0.15 until August 8, 2027. Project development continues with procurement at 98% completion, and operations remain on track for an H1 2025 restart. Current progress includes refurbishment of underground access ramps and installation of processing plant infrastructure.

Positive

• Project procurement is 98% complete
• On track for H1 2025 mine restart
• Secured additional US$1.48M in financing
• Continued progress in infrastructure development

Negative

• Additional share dilution through warrant issuance
• Increasing debt obligations through silver loan facility

KELLOG, Idaho and VANCOUVER, British Columbia, Dec. 31, 2024 (GLOBE NEWSWIRE) -- Bunker Hill Mining Corp. (“Bunker Hill” or the “Company”) (TSX-V:BNKR; OTCQB:BHLL) announces that it has closed the fifth tranche of the previously announced silver loan with Monetary Metals Bond III LLC (the “LLC”), an entity established by Monetary Metals & Co. (“MM”), in the principal amount of US$1,478,847, being the amount of US dollars equal to 50,198 ounces of silver as of the date such amount was advanced to the LLC (the “Fifth Tranche”).

Sam Ash, President and CEO, said: “While most of the market has been taking its holiday, Bunker Hill has completed another tranche of finance with its partner Monetary Metals, LLC, enabling critical project and resource upgrade activity to advance concurrently with our ongoing corporate financing discussions.”

Fifth Tranche of Silver Loan

As further described in the news releases dated June 7, 2024 and August 8, 2024, MM, through the LLC, has agreed to loan the Company a principal amount of US dollars equal to up to 1.2 million ounces of silver to be advanced in one or more tranches, in support of the re-start and ongoing development of the Bunker Hill Mine (the “Silver Loan”). On August 8, 2024, the Company closed on the first tranche of the Silver Loan in the principal amount of US$16,422,039, being the amount of US dollars equal to, as of August 8, 2024, 609,805 ounces of silver (the “First Tranche”) and on September 24, 2024, the Company closed on the second tranche of the Silver Loan in the principal amount of US$6,369,000, being the amount of US dollars equal to, as of September 24, 2024, 200,000 ounces of silver (the “Second Tranche”). As described in the news release dated November 6, 2024, an additional principal amount of US$6,321,112, the amount of US dollars equal to, as of November 6, 2024, 198,777 ounces of silver, was advanced in connection with the Silver Loan (the “Third Tranche”). As described in the news release dated November 13, 2024, an additional principal amount US$1,250,000, being the amount of US dollars equal to, as of the date such amount was advanced to the LLC, 39,620 ounces of silver, was advanced in connection with the Silver Loan (the “Fourth Tranche”).

As further described in the news releases dated August 8, 2024, September 25, 2024 and November 13, 2024, the Company has issued to MM: (i) 1,280,591 non-transferable bonus share purchase warrants (“Warrants”) in connection with First Tranche; and (ii) 400,000 Warrants in connection with the Second Tranche; and (iii) an aggregate 476,793 Warrants in connection with the Third and Fourth Tranche. In connection with the Fifth Tranche, the Company will, subject to prior approval of the TSX Venture Exchange (the “TSX-V”), issue a total of 100,397 Warrants to MM (the “Bonus Warrants”). Each Bonus Warrant will entitle the holder to acquire one share of common stock of the Company (each, a “Warrant Share”) at an exercise price of C$0.15, being the last closing price of the Company’s common stock prior to the date of issuance of the Bonus Warrants. The Bonus Warrants will be exercisable until August 8, 2027, subject to acceleration in accordance with the policies of the TSX-V and will be subject to a hold period of four months and one day from the issuance of the Bonus Warrants in accordance with applicable securities laws. The issuance of Warrant Shares is subject to the terms and conditions of the Warrants as well as the receipt of all regulatory approvals, including, without limitation, the approval of the TSX-V.

The securities referenced herein or any securities underlying or derived from the financial instruments referenced herein, including but not limited to the Warrants, the Warrant Shares, and the Silver Loan, have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”). This news release does not constitute an offer to sell or the solicitation of an offer to buy such securities, nor shall there be any sale of such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Project Update Photographs

Procurement is 98% complete (equipment ordered, on-site or final contract signed), and activity continues on track for an H1 2025 restart of operations. Concurrent with the refurbishment of the underground access ramp between the 7-2 and 8-2 Levels, the team is working to complete the installation of the various mezzanine floors within the processing plant, the conveyor systems, and the installation of piping and electrical equipment.

Figure 1: Installation of mezzanine access floors within the concentrator building

Figure 2: Conveyor infrastructure installed to feed the concentrate load-out facility

Figure 3: Completed main filtration tank on site of the tailings filter press in Kellogg yard

ABOUT BUNKER HILL MINING CORP.

Under Idaho-based leadership, Bunker Hill intends to sustainably restart and develop the Bunker Hill Mine as the first step in consolidating and then optimizing several mining assets into a high-value portfolio of operations centered initially in North America. Information about the Company is available on its website, www.bunkerhillmining.com, or within the SEDAR+ and EDGAR databases.

On behalf of Bunker Hill Mining Corp.

Sam Ash
President and Chief Executive Officer

For additional information, please contact:

Brenda Dayton
Vice President, Investor Relations
T: 604.417.7952
E: brenda.dayton@bunkerhillmining.com

Cautionary Statements

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this news release.

Certain statements in this news release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, as well as within the meaning of the phrase ‘forward-looking information’ in the Canadian Securities Administrators’ National Instrument 51-102 – Continuous Disclosure Obligations (collectively, “forward-looking statements”). Forward-looking statements are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, “plan” or variations of such words and phrases.

Forward-looking statements in this news release include, but are not limited to, statements regarding: the Company’s objectives, goals or future plans, including the restart and development of the Bunker Hill Mine and the expected timing thereof; the Company raising the required funds for the planned project restart through its project finance initiatives, including by way of debt, equity, offtake or similar financings; the achievement of future short-term, medium-term and long-term operational strategies; the Silver Loan; the Company receiving TSX-V approval for the issuance of the Warrants, Bonus Warrants and the Warrant Shares; and the timing and advancement of additional tranches of the Silver Loan and additional Warrants. Forward-looking statements reflect material expectations and assumptions, including, without limitation, expectations and assumptions relating to: Bunker Hill’s ability to receive sufficient project financing for the restart and development of the Bunker Hill Mine on acceptable terms or at all by the expected timeline; the future price of metals; and the stability of the financial and capital markets. Factors that could cause actual results to differ materially from such forward-looking statements include, but are not limited to, those risks and uncertainties identified in public filings made by Bunker Hill with the U.S. Securities and Exchange Commission (the “SEC”) and with applicable Canadian securities regulatory authorities, and the following: the Company not receiving the approval of the TSX-V for the issuance of the Warrants and the Warrant Shares; the Company’s inability to raise additional capital for project activities, including through equity financings, concentrate offtake financings or otherwise; the fluctuating price of commodities; capital market conditions; restrictions on labor and its effects on international travel and supply chains; failure to identify mineral resources; failure to convert estimated mineral resources to reserves; the preliminary nature of metallurgical test results; the Company’s ability to restart and develop the Bunker Hill Mine and the risks of not basing a production decision on a feasibility study of mineral reserves demonstrating economic and technical viability, resulting in increased uncertainty due to multiple technical and economic risks of failure which are associated with this production decision including, among others, areas that are analyzed in more detail in a feasibility study, such as applying economic analysis to resources and reserves, more detailed metallurgy and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit, with no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved; failure to commence production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations; failure to achieve the anticipated production costs would have a material adverse impact on the Company’s cash flow and future profitability; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; changes in equity markets; uncertainties relating to the availability and costs of financing needed in the future; the inability of the Company to budget and manage its liquidity in light of the failure to obtain additional financing, including the ability of the Company to complete the payments pursuant to the terms of the agreement to acquire the Bunker Hill Mine complex; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of projects; and capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements in this news release are reasonable, undue reliance should not be placed on such statements or information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all, including as to whether or when the Company will achieve its project finance initiatives, or as to the actual size or terms of those financing initiatives. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Readers are cautioned that the foregoing risks and uncertainties are not exhaustive. Additional information on these and other risk factors that could affect the Company’s operations or financial results are included in the Company’s annual report and may be accessed through the SEDAR+ website (www.sedarplus.ca) or through EDGAR on the SEC website (www.sec.gov).

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/7ecd334d-3822-4f8c-b7bb-cd3cea531f35

https://www.globenewswire.com/NewsRoom/AttachmentNg/d18e1e4d-c826-4edc-aee5-5d0e2266d79b

https://www.globenewswire.com/NewsRoom/AttachmentNg/e7b40fff-b0cf-438b-96a7-cf647eff43b3

FAQ

What is the total amount raised by BHLL through the silver loan facility to date?

Through five tranches, BHLL has raised approximately US$31.84 million, equivalent to about 1.1 million ounces of silver.

When is Bunker Hill Mining (BHLL) expected to restart operations?

Bunker Hill Mining is on track to restart operations in the first half of 2025.

How many warrants will BHLL issue for the fifth tranche of the silver loan?

BHLL will issue 100,397 bonus warrants at an exercise price of C$0.15, exercisable until August 8, 2027.

What is the current procurement status of BHLL's mine restart project?

The project procurement is 98% complete, including ordered equipment, on-site materials, and final contracts signed.