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

Rhea-AI Summary

Bunker Hill Mining Corp. (TSX-V:BNKR | OTCQB:BHLL) has closed the second tranche of its previously announced silver loan with Monetary Metals Bond III The second tranche amounts to US$6,369,000, equivalent to 200,000 ounces of silver as of September 24, 2024. This follows the first tranche of US$16,422,039, equivalent to 609,805 ounces of silver, closed on August 8, 2024.

In connection with the second tranche, Bunker Hill will issue 400,000 non-transferable bonus share purchase warrants to Monetary Metals, subject to TSX Venture Exchange approval. Each warrant allows the holder to acquire one common share at C$0.16 until August 8, 2027. The total silver loan facility can reach up to 1.2 million ounces of silver, supporting the re-start and development of the Bunker Hill Mine.

Positive

• Secured additional funding of US$6,369,000 through the second tranche of the silver loan
• Total funding from the silver loan facility has reached US$22,791,039 so far
• The silver loan supports the re-start and ongoing development of the Bunker Hill Mine

Negative

• Potential dilution for existing shareholders due to the issuance of 400,000 warrants
• Increased debt obligation with the additional US$6,369,000 from the second tranche

VANCOUVER, British Columbia, Sept. 25, 2024 (GLOBE NEWSWIRE) -- Bunker Hill Mining Corp. (“Bunker Hill” or the “Company”) (TSX-V:BNKR | OTCQB:BHLL) announces that it has closed the second tranche of the previously announced silver loan with Monetary Metals Bond III LLC (“MM”), an entity established by Monetary Metals & Co., 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 releases dated June 7, 2024, and August 8, 2024, MM 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 number of US dollars equal to, as of August 8, 2024, 609,805 ounces of silver (the “First Tranche”). In connection with the First Tranche, the Company also issued 1,280,591 non-transferable bonus share purchase warrants (“Warrants”) to MM as consideration for the First Tranche.

In connection with closing of this Second Tranche, the Company will, subject to prior approval of the TSX Venture Exchange (the “TSX-V”), issue a total of 400,000 Warrants to MM (the “Tranche 2 Warrants”). Each Tranche 2 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$0.16, being the last closing price of the Company’s common stock prior to the date hereof. The Tranche 2 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 Tranche 2 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.

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; 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 and the Warrant Shares; and the timing and advancement of additional tranches of the Silver Loan and additional Warrants. 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).

FAQ

What is the total amount Bunker Hill Mining (BHLL) has received from the silver loan facility so far?

Bunker Hill Mining (BHLL) has received a total of US$22,791,039 from the silver loan facility so far, consisting of US$16,422,039 from the first tranche and US$6,369,000 from the second tranche.

How many warrants did Bunker Hill Mining (BHLL) issue for the second tranche of the silver loan?

Bunker Hill Mining (BHLL) will issue 400,000 non-transferable bonus share purchase warrants for the second tranche of the silver loan, subject to TSX Venture Exchange approval.

What is the exercise price and expiration date of the warrants issued by Bunker Hill Mining (BHLL) for the second tranche?

The warrants issued by Bunker Hill Mining (BHLL) for the second tranche have an exercise price of C$0.16 and are exercisable until August 8, 2027.

What is the maximum amount of silver that can be loaned to Bunker Hill Mining (BHLL) through the silver loan facility?

The maximum amount of silver that can be loaned to Bunker Hill Mining (BHLL) through the silver loan facility is up to 1.2 million ounces of silver.