Bunker Hill Announces Election to Issue Shares in Satisfaction of Debenture Interest Payment Obligations
Bunker Hill Mining Corp. (TSX-V: BNKR; OTCQB: BHILL) has announced its decision to issue 5,175,000 shares of common stock to satisfy interest payments on its 7.5% and 10.5% convertible debentures due September 30, 2024. The interest payment totals USD$517,500. The shares will be issued at USD$0.10 per share, based on 90% of the 10-day volume-weighted average trading price on the TSX-V from September 9-20, 2024.
Notably, 4,983,334 shares will be issued to Sprott Private Resource Streaming and Royalty Corp., constituting a related party transaction. The company is relying on exemptions from formal valuation and minority shareholder approval requirements under MI 61-101. The issuance is subject to regulatory approvals and a four-month hold period.
Bunker Hill Mining Corp. (TSX-V: BNKR; OTCQB: BHILL) ha annunciato la sua decisione di emettere 5.175.000 azioni di capitale comune per soddisfare i pagamenti degli interessi sui suoi debentures convertibili al 7,5% e 10,5% in scadenza il 30 settembre 2024. Il pagamento degli interessi ammonta a 517.500 USD. Le azioni saranno emesse a 0,10 USD per azione, basato sul 90% del prezzo medio ponderato per volume negli ultimi dieci giorni di negoziazione sulla TSX-V dal 9 al 20 settembre 2024.
È importante notare che 4.983.334 azioni saranno emesse a Sprott Private Resource Streaming and Royalty Corp., costituendo una transazione con parti correlate. La società si basa su esenzioni dai requisiti di valutazione formale e approvazione da parte degli azionisti di minoranza ai sensi del MI 61-101. L'emissione è soggetta ad approvazioni regolamentari e a un periodo di blocco di quattro mesi.
Bunker Hill Mining Corp. (TSX-V: BNKR; OTCQB: BHILL) ha anunciado su decisión de emitir 5.175.000 acciones de acciones ordinarias para satisfacer los pagos de intereses de sus bonos convertibles al 7,5% y 10,5% que vencen el 30 de septiembre de 2024. El total del pago de intereses es 517.500 USD. Las acciones se emitirán a 0,10 USD por acción, basado en el 90% del precio promedio ponderado por volumen durante los últimos diez días de negociación en la TSX-V desde el 9 hasta el 20 de septiembre de 2024.
Cabe destacar que 4.983.334 acciones se emitirán a Sprott Private Resource Streaming and Royalty Corp., constituyendo una transacción con partes relacionadas. La compañía se apoya en exenciones de los requisitos de valoración formal y aprobación de los accionistas minoritarios bajo MI 61-101. La emisión está sujeta a aprobaciones regulatorias y a un periodo de bloqueo de cuatro meses.
Bunker Hill Mining Corp. (TSX-V: BNKR; OTCQB: BHILL)는 5,175,000주의 보통주를 발행하여 2024년 9월 30일 만기인 7.5% 및 10.5% 전환사채에 대한 이자 지급을 충당하기로 결정했다고 발표했습니다. 이자 지급 총액은 517,500 USD입니다. 주식은 주당 0.10 USD에 발행되며, 이는 2024년 9월 9일부터 20일까지 TSX-V에서의 10일간 거래량 가중 평균 가격의 90%를 기준으로 합니다.
Bunker Hill Mining Corp. (TSX-V: BNKR; OTCQB: BHILL) a annoncé sa décision d'émettre 5.175.000 actions de capital commun pour satisfaire les paiements d'intérêts sur ses obligations convertibles à 7,5% et 10,5% arrivant à échéance le 30 septembre 2024. Le montant total des paiements d'intérêts s'élève à 517.500 USD. Les actions seront émises à 0,10 USD par action, basé sur 90 % du prix moyen pondéré par volume des 10 derniers jours de négociation sur la TSX-V du 9 au 20 septembre 2024.
Notamment, 4.983.334 actions seront émises à Sprott Private Resource Streaming and Royalty Corp., constituant une transaction avec partie liée. La société s'appuie sur des exemptions aux exigences d'évaluation formelle et d'approbation des actionnaires minoritaires en vertu du MI 61-101. L'émission est soumise à des approbations réglementaires et à une période de conservation de quatre mois.
Bunker Hill Mining Corp. (TSX-V: BNKR; OTCQB: BHILL) hat beschlossen, 5.175.000 Aktien des Stammkapitals auszugeben, um die Zinszahlungen auf ihre 7,5% und 10,5% wandelbaren Anleihen, die am 30. September 2024 fällig werden, zu erfüllen. Die Zinssumme beträgt 517.500 USD. Die Aktien werden zu 0,10 USD pro Aktie ausgegeben, basierend auf 90% des volumengewichteten Durchschnittspreises der letzten 10 Handelstage an der TSX-V vom 9. bis 20. September 2024.
Bemerkenswert ist, dass 4.983.334 Aktien an Sprott Private Resource Streaming and Royalty Corp. ausgegeben werden, was eine Transaktion mit verbundenen Parteien darstellt. Das Unternehmen verlässt sich auf Ausnahmen von den Anforderungen an die formelle Bewertung und die Genehmigung durch die Minderheitsaktionäre gemäß MI 61-101. Die Emission unterliegt regulatorischen Genehmigungen und einer viermonatigen Haltefrist.
- Bunker Hill is able to satisfy its interest payment obligations without using cash, preserving liquidity
- The company maintains good relations with major debenture holders like Sprott, who are willing to accept shares instead of cash
- Issuance of new shares may lead to dilution for existing shareholders
- The company's reliance on issuing shares for interest payments might indicate cash flow challenges
VANCOUVER, British Columbia, Sept. 20, 2024 (GLOBE NEWSWIRE) -- Bunker Hill Mining Corp. (“Bunker Hill” or the “Company”) (TSX-V: BNKR; OTCQB: BHILL) announces that it has elected to issue an aggregate of 5,175,000 shares of common stock of the Company (the “Interest Shares”) to certain holders of
In accordance with the terms of the Convertible Debentures, the Company will issue the Interest Shares at a price of USD
In connection with the Interest Payment, the Company will issue an aggregate of 4,983,334 Interest Shares to certain managed accounts of Sprott Private Resource Streaming and Royalty Corp. (“Sprott”) and, accordingly, the issuance of such Interest Shares to Sprott will constitute a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Shareholder Approval (“MI 61-101”). The Company will rely on exemptions from the formal valuation and minority shareholder approval requirements under MI 61-101 as neither the fair market value of the Interest Shares to be issued to Sprott, nor the consideration received for such Interest Shares, will exceed
The issuance of the Interest Shares is subject to the terms and conditions of the Convertible Debentures as well as the receipt of all regulatory approvals, including, without limitation, the approval of the TSX-V. Once issued, the Interest Shares will be subject to a four-month and one-day hold period in accordance with applicable Canadian securities laws.
Additional details regarding the Convertible Debentures can be found in the Company’s news releases dated December 20, 2021, January 31, 2022, June 20, 2022, June 26, 2023 and August 8, 2024, all of which are available under the Company’s profile on SEDAR+ at www.sedarplus.ca.
ABOUT BUNKER HILL MINING CORP.
Under new Idaho-based leadership, Bunker Hill intends to restart and develop the Bunker Hill Mine sustainably as the first step in consolidating and optimizing a number of 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 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 U.S. Securities Act of 1933, as amended, 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 issuance of the Interest Shares by the Company, including the aggregate number and pricing of the Interest Shares; and the Company receiving TSX-V approval for the issuance of the Interest Shares. 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 Interest Shares; the Company’s inability to raise additional capital for project activities, including through equity financings, concentrate offtake financings or otherwise; 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).
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