BHMC to receive massive financing package
KELLOGG –– Big things are happening at the Bunker Hill Mine.
On Wednesday, the Bunker Hill Mining Corp. (the company) announced the execution of a non-binding term sheet outlining an upsized and improved $67 million finance package with Sprott Private Resource Streaming & Royalty Corp (Sprott Streaming).
The non-dilutive funding allows them to receive the financing without having to give up equity or ownership.
The package consists of a $46 million multi-metals Stream expected to be funded in June 2023, and a commitment for a $21 million new debt facility that will be available for draw, subject to certain terms and conditions, for two years at the Company’s election. Including the previously funded $8 million Royalty Convertible Debenture, $6 million Series 1 Convertible Debenture, and $15 million Series 2 Convertible Debenture – Sprott Streaming’s total commitment to the Bunker Hill Mine restart would increase to $96 million.
“We are excited to announce an upsized and improved project finance package that we expect to backstop the full financing of the Bunker Hill mine restart, materially strengthen our balance sheet and liquidity, and support our TSX-V application,” Bunker Hill CEO Sam Ash said. “This will enable the full-scale recommencement of project activities and allows us to target a restart of the mine and first concentrate production by the end of 2024. We are thrilled to have partnered with Sprott Streaming, who have demonstrated their commitment and support for the project each step of the way. We are also delighted to announce that Teck has exercised its option to acquire 100% of our concentrate production for a minimum five-year period, ensuring a long-term sustainable revenue source.”
The Company is pleased to report that Teck has exercised its option, as previously announced on March 31, 2022, to acquire 100% of the zinc and lead concentrate production from the Bunker Hill Mine for a 5-year period. The parties are advancing a definitive agreement, which is expected to conclude over the following weeks.
The proposed agreement would secure a long-term, sustainable revenue source for the mine.
With project financing secured, the Company plans to recommence engineering and construction activities, targeting first concentrate production by the end of 2024 and commercial production shortly thereafter.
Process plant engineering is approximately 90% complete with full completion projected to take approximately three months. Detailed engineering to date has focused on civil engineering designs, which allows construction to commence concurrently starting with laying the foundations for the process plant building and associated infrastructure.
Long lead procurement will also be initiated, with purchase commitments issued. This includes concluding the purchase of the ball mill (previously announced on September 20, 2022), designed to upgrade the existing comminution circuit and increase the plant’s throughput from 1,800 tons per day to 2,100.
Mine infrastructure workstreams will initially be focused on upgrading the old Russell Portal to a production-ready condition, finalizing the installation of line power to the Reed Landing, and continuing scheduled rehabilitation activities in the mine. This will set the conditions for the most efficient definition drilling of the initial mining stopes in the Quill and Newgard areas and any associated early development activity.
Under new Idaho-based leadership, the Bunker Hill Mining Corp. intends to sustainably restart and develop the Bunker Hill Mine as the first step in consolidating a portfolio of North American mining assets with a focus on silver. Information about the Company is available on its website, www.bunkerhillmining.com.
