Bunker Hill Mining Corp. lease reinstated
TORONTO, CANADA – Bunker Hill Mining Corporation (the “Company” or “Bunker”) (CSE:BNKR) recently announced that it reached an agreement providing for reinstatement of its lease on the Bunker Hill Mine. The lease has been reinstated and became effective again on November 6, 2018.
Mr. John Ryan, Interim CEO of the Company commented, “We are very pleased to have worked out an agreement with the mine owner, Placer Mining Corp., to enable us to continue our effort to ultimately reopen the mine and make it a productive asset. I believe the discussions we have had over the last several weeks have unified our common goal to continue to advance the project toward production. We are excited to get going on our work plan for the upcoming months and to get items accomplished on budget and on time. We will be providing timely updates to the marketplace on our progress.”
Reinstatement of Lease Agreement
Pursuant to the reinstatement, the Company achieved a substantial reduction of its monthly lease payments spanning the next twelve months. In addition, if the Company achieves certain agreed goals on its work program at the mine, the payment concessions can be extended an additional six months.
The monthly payments will be $60,000 per month for the next twelve months, a reduction of 70% from the previous amount of $200,000. It has been agreed that the reduction in payments will be made up for by adding the accumulated reduction to the purchase price of the mine should the Company choose to exercise its purchase option.
The Company is also in discussions with the United States EPA on concessions with respect to the Company’s payment obligations owed to the EPA. In general, those discussions to date have been highly positive. The Company intends to submit a written proposal to the EPA by the end of this week, and will report further progress on these discussions as they occur.
Financing
Given the urgent need to secure financing to meet the new lease obligations, Bunker’s Board has approved an equity private placement for up to C$300,000 consisting of up to 4,000,000 units to be sold at C$0.075 per Unit with Unit consisting of one common share and one common share purchase warrant.
Each whole warrant is exercisable to acquire one common share at a price of C$0.10 for a period of two years. The private placement is subject to regulatory approval.
Management update
Mr. Howard Crosby announced his resignation from the Board and as an Officer of the Company. The Company wishes to thank Mr. Crosby for his contributions to the Company since the Fall of 2016.
Mr. Crosby reported in his resignation letter that his departure was for personal reasons and was not the result of any disagreement with the Company, or on any matter relating to the Company’s operations.
The Company would also like to announce the appointment of John Liu as a director.
John Liu has over 25-years experience in private equity investment, consulting and business management. He is a partner at Valuestone Advisors Limited. John has a wide range of private equity investment experience across multiple sectors, including mining.
He was previously an advisor to Jiangxi Copper Corp., the largest integrated copper company in China, focused on its global development strategy and overseas M&A projects. Prior to that, he held positions in renowned private fund managers: Greenwoods Private Equity Funds, Mousse Partners, Actis and Merrill Lynch Direct Investment Group.
He was a member of the board of a number of portfolio companies.
John received an MBA from the University of British Columbia in Canada, and a B.Sc. in computer science and engineering from Shanghai Jiaotong University in China.