Bunker Hill Announces Election To Issue Shares in Satisfaction of Financing Cooperation Fee

Rhea-AI Summary

Bunker Hill Mining Corp. (TSX-V: BNKR; OTCQB: BHLL) has announced its decision to issue 506,775 shares of common stock at a deemed price of C$0.16 per share to satisfy a US$60,000 financing cooperation fee owed to a creditor. This fee covers the period from April 1 to June 30, 2024, and is part of an agreement where the creditor provides collateral security for surety bonds related to the Bunker Hill Mine. The company chose to issue shares instead of cash to preserve funds for potential mine restart and development. The transaction requires regulatory approvals, including TSX Venture Exchange approval. The issued shares will have a four-month and one-day hold period and are not registered under U.S. securities laws.

Positive

• Preserving cash for potential mine restart and development
• Satisfying debt obligation through share issuance instead of cash payment

Negative

• Potential dilution of existing shareholders due to new share issuance
• Ongoing monthly financing cooperation fee of US$20,000

VANCOUVER, British Columbia, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Bunker Hill Mining Corp. (“Bunker Hill” or the “Company”) (TSX-V: BNKR; OTCQB: BHLL) announces that it has elected to issue 506,775 shares of common stock (the “Shares”) at a deemed issue price of C$0.16 per Share to a certain creditor of the Company (the “Creditor”) in full satisfaction of the aggregate US$60,000 financing cooperation fee owing to the Creditor for the three (3) month period beginning on April 1, 2024 and ending on June 30, 2024 (the “Q2 Cooperation Fee”) pursuant to the terms of an agreement re financing cooperation dated September 27, 2022 (the “Cooperation Agreement”) entered into by and among the Company and the Creditor.

The Cooperation Agreement provides for, among other things, the Creditor and its affiliates providing certain collateral security in order for the Company to obtain certain surety bonds with respect to the Bunker Hill Mine (the “Collateral Security”). In consideration for the Collateral Security, the Company is required to pay the Creditor a financing cooperation fee of US$20,000 per month during the term of the Cooperation Agreement. The Company has elected to issue the Shares in lieu of paying cash for the Q2 Cooperation Fee to preserve its cash for the potential restart and ongoing development of the Bunker Hill Mine.

The transaction remains subject to the receipt of all regulatory approvals, including, without limitation, the approval of the TSX Venture Exchange (the “TSX-V”). Once issued, the Shares will be subject to a four month and one day hold period in accordance with applicable Canadian securities laws. The Shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States without registration under the U.S. Securities Act and all applicable state securities laws or in compliance with the requirements of an applicable exemption therefrom.

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 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 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 U.S. 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 completion of the transaction, including the number and deemed pricing of the Shares; and the Company receiving TSX-V approval for the transaction. 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 transaction; 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).

FAQ

How many shares is Bunker Hill Mining Corp. (BHLL) issuing to satisfy the Q2 Cooperation Fee?

Bunker Hill Mining Corp. is issuing 506,775 shares of common stock to satisfy the US$60,000 Q2 Cooperation Fee.

What is the deemed issue price per share for Bunker Hill Mining Corp. (BHLL) in this transaction?

The deemed issue price per share for this transaction is C$0.16.

What is the purpose of the Cooperation Agreement for Bunker Hill Mining Corp. (BHLL)?

The Cooperation Agreement provides collateral security for Bunker Hill Mining Corp. to obtain surety bonds for the Bunker Hill Mine.

How long is the hold period for the newly issued shares of Bunker Hill Mining Corp. (BHLL)?

The newly issued shares will be subject to a four-month and one-day hold period in accordance with Canadian securities laws.