Bunker Hill Mining Corp. renegotiates option agreement

Bunker Hill Mining Corporation is pleased to announce that it has successfully renegotiated its option agreement for the purchase of a 100% interest in the saleable assets at the Bunker Hill Mine complex from Placer Mining Corporation. Under the new terms, the purchase price has been decreased by 30% from $11.0 million USD to $7.7 million USD.

Sam Ash, CEO of Bunker Hill Mining, stated:

“We are very pleased to have successfully negotiated a lower purchase price for the option agreement as it allows us to further focus our efforts on the ongoing high-grade silver exploration campaign and the mining restart plan. Under the terms of the agreement, we will be able to continue to explore, finalize the studies, and restart mining activities before being required to exercise the purchase option in August 2022. This offers a unique opportunity to optimize our working capital requirements and focus our balance sheet on the development of the asset.

Our silver-focused exploration program is continuing to progress well and we are excited to publish drill results in the upcoming weeks. We have recently completed 6,000 feet of drilling from surface and are now moving the drill rigs to underground platforms to avoid any winter-related delays.”

Bunker Hill Mining’s option agreement expires on Aug. 1, 2022. Under the new terms of the amended agreement, the total consideration has been reduced by 30% to $7.7 million, consisting of $5.4 million payable in cash and $2.0 million in shares of Bunker Hill Mining Corporation. The reference price for the payment in shares will be based on the share price of the last equity raise before the option is exercised.

The company will continue to make a monthly care and maintenance payment of $60,000 to Placer Mining Corporation in return for on-going technical support to Bunker Hill Mining. Under the amended agreement, Bunker Hill Mining's contingent obligation to settle $1.8 million of accrued payments due to Placer Mining, if the company decides not to exercise its right to purchase, has been waived.

Under the amended agreement, the company is to make an advance payment of $2.0 million to the lessor which shall be credited toward the purchase price of the Bunker Hill Mine when the company elects to exercise its purchase right.