Bunker Hill Mining Corp. [BNKR-TSXV, BHLL-OTCQB] said it has received a non-binding letter of intent from the Export-Import Bank of the United States for $150 million with a loan term of up to 15 years.
The company said the funding will enable it to expedite the development of the 2,500 tonne per day Bunker 2.0 expansion project coincident with restarting the mine and strengthening the balance sheet.
“We are thrilled to announce this first step in a potential partnership with EXIM to rapidly expand Bunker Hills’s contribution to US domestic production of critical zinc and silver,’’ said Bunker Hill President and CEO Sam Ash. “in the face of competition from China, Bunker Hill is proud to play its part in strengthening the US metals supply chain and creating new U.S. mining jobs with the disadvantaged Shoshone County of Northern Idaho.”
Bunker Hill’s cornerstone asset is the historic Bunker Hill Silver-Lead-Zinc mine located in Kellogg, Idaho. The company has said it intends to sustainably restart and develop the Bunker Hill mine as the first step in consolidating and optimizing several mining assets into a high-value portfolio of operations initially centred in North America. The Bunker Hill mine ceased operations in 1981 due to a combination of depressed base metal prices and the need for substantial capital investment to upgrade the facilities to comply with new environmental regulations. Since its closure the mine has been under care and maintenance.
However, a preliminary economic assessment (PEA) and subsequent pre-feasibility study (PFS) results indicate that by optimizing existing resources, partnerships and infrastructure, the mine is projected to restart operations in the first half of 2025. The renewed Bunker Hill mine is anticipated to be a low-cost, long-life, and sustainable venture, the company has said.
The PFS 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 are now focused on placing the mezzanine floors, fully refurbished flotation cells and associated mechanical equipment.
The fully refurbished ball mills (main and regrind) are set and being connected to motor drives in advance of being energized.
Meanwhile, the company said a second mining team was recruited from the local community, on-boarded and began operations in September, materially increasing the pace of activity.
The refurbishment of the ramp between the 7.0 and 8.0 levels continues at an average rate of 30 feet per day with excavating an underground maintenance shop.
Bunker Hill shares were unchanged at 15.5 cents and trade in a 52-week range of 19 cents and $0.09.
