Bunker Hill Mining Corp. [BNKR-TSXV, BHLL-OTCQB] has announced the closing of $31 million worth of combined equity financings and debt settlement, along with its major capital restructuring.
That includes a previously announced brokered private placement for US$6.2 million in cash, and the debt settlement of US$4.4 million (40.72 million units). The brokered private placement included participation by Sprott Streaming and Royalty Corp. The company has also closed its concurrent non-brokered private placement with Teck Resources Ltd. (TECK.B-TSX, TECK.A-TSX, TECK-NYSE) for approximately US$20.5 million. As part of the equity offering, the company issued 252.2 million units priced at 15 cents (Canadian) per unit, of which Teck acquired 195.3 million units and 56.9 million units were sold by a syndicate of agents. Of that amount, Sprott Streaming acquired 10 million units.
The company said it is pleased to announce that it has concurrently closed the previously announced capital restructuring transactions, including the conversion into equity of certain outstanding debt and the modification of certain existing royalty and stream financing arrangements with Sprott Streaming.
“We are pleased to announce the closing of this transformational transaction, which not only strengthens our balance sheet but signals a new phase in our longstanding partnership with both Teck and Sprott Streaming,’’ said Bunker Hill Executive Chairman Richard Williams. “Although the transaction took many weeks to finalize, we know the results will benefit all stakeholders and continue the work our team is doing in Kellogg, Idaho to bring this great asset into production,’’ he said.
Bunker Hill shares rose 3.7% or $0.005 to 14 cents in early trading, Friday. The shares trade in a 52-week range of 27 cents and $0.095.
Bunker Hill is an American exploration and development company focused on revitalizing its historic mining asset: the renowned zinc, lead and silver deposit in northern Idaho’s Coeur d’Alene mining district.
The company intends to use the net proceeds of the equity offerings to support the construction, start-up and ramp-up of the Bunker Hill mine in Silver Valley.
The renewed Bunker Hill mine is anticipated to be a low-cost, long-life, and sustainable venture, the company has said.
A pre-feasibility study envisages a five-year initial mine life, generating US$25 million in annual cash flow. The capital expenditure was pegged at US$55 million over 16 months.
In a recent update, the company said the 1,800 tonne per day processing facility building and its Motor Control Centre have been fully constructed and connected to the 13.8 KV grid power. It said internal construction activities, enabled by the operational 20 t internal crane were focused on placing the mezzanine floors, fully refurbished flotation cells and associated mechanical equipment.
Meanwhile, the company said that Paul Smith has resigned as a director of the company.
