VANCOUVER, British Columbia, Sept. 05, 2024 (GLOBE NEWSWIRE) — Bunker Hill Mining Corp.. (“Bunker Hill” or the “Company“) BNKRbhlll announces that it has elected to issue 506,775 ordinary shares (the “Actions“) at an estimated issue price of C$0.16 per Share to a certain creditor of the Company (the “Creditor“) in full satisfaction of the total of US$60,000 of the financial cooperation fee owed to the Creditor for the three (3) month period commencing on April 1, 2024 and ending on June 30, 2024 (the “Q2 cooperation fee“) pursuant to the terms of a refinancing cooperation agreement dated September 27, 2022 (the “Cooperation agreement“) entered into between the Company and the Creditor.
The Cooperation Agreement provides, among other things, for the Creditor and its affiliates to provide certain collateral guarantees for the Company to obtain certain sureties with respect to the Bunker Hill Mine (the “Collateral Security“). As consideration for the Collateral, the Company is required to pay the Lender a financial cooperation fee of US$20,000 per month for the term of the Cooperation Agreement. The Company has elected to issue the Shares in lieu of paying the Q2 Cooperation Fee in cash in order to preserve its cash for the potential restart and continued development of the Bunker Hill Mine.
The transaction is subject to receipt of all regulatory approvals, including, without limitation, 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 under 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 “United States 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 compliance with the requirements of an applicable exemption therefrom.
ABOUT BUNKER HILL MINING CORP.
Under the leadership of the Idaho-based company, Bunker Hill intends to restart and sustainably develop the Bunker Hill mine as a first step toward consolidating and then optimizing a number of mining assets into a portfolio of high-value operations, initially focused on North America. Information about the company is available on its website. www.bunkerhillmining.comor within the SEDAR+ and EDGAR databases.
On behalf of Bunker Hill Mining Corp.
Sam Ash
President and CEO
For additional information, please contact:
Brenda Dayton
Vice President of Investor Relations
Phone: 604.417.7952
MY: 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 press 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 National Instrument 51-102 of the Canadian Securities Administrators – Continuous Disclosure Obligations (collectively, “Forward-Looking Information”).Forward-looking statementsForward-looking statements are not historical facts. Forward-looking statements include estimates and statements describing 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 can be identified by terms such as “believes,” “anticipates,” “expects,” “estimates,” “may,” “could,” “would,” “will,” “plans,” 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 future objectives, goals or plans, including the restart and development of the Bunker Hill mine; the achievement of future short-, medium- and long-term operating strategies; the completion of the transaction, including the estimated number and price of the Shares; and the Company's obtaining approval from the TSX-V 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 United States Securities and Exchange Commission (the “Filings”).SECOND“) and with applicable Canadian securities regulatory authorities, and the following: the Company did not receive approval from the TSX-V for the transaction; the Company's inability to raise additional capital for project activities, including through equity financings, concentrate purchase financings or otherwise; capital market conditions; labour restrictions and their 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 mineral reserve feasibility study that demonstrates economic and technical viability, resulting in heightened uncertainty due to multiple technical and economic risks of failure that are associated with this production decision, including, but not limited to, areas that are discussed in more detail in a feasibility study, such as the application of 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 greater uncertainty of achieving any particular level of mineral recovery or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit, with no guarantee that production will commence 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 revenues and cash flow to fund operations; failure to achieve anticipated production costs would have a material adverse impact on the Company's future cash flow and profitability; delays in obtaining or failures to obtain required governmental, environmental or other approvals for the project; political risks; changes in the securities markets; uncertainties relating to the availability and costs of financing needed in the future; the Company's inability to budget and manage its liquidity in light of the failure to obtain additional financing, including the Company's ability to complete 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 project development; and capital, operating and recovery 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 speak only 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 whether and when the Company will be successful in its project financing initiatives, or the actual size or terms of those financing initiatives. The Company undertakes no intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except 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 regarding these and other risk factors that could affect the Company's operations or financial results is included in the Company's annual report and can be accessed through the SEDAR+ website (www.sedarplus.ca) or through EDGAR on the SEC's website (www.sec.gov).
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