Bunker Hill Mining – Financing Package Milestone and Offtake Agreement Announced To Enable The Mine Restart
Richard Willams, Executive Chairman of Bunker Hill Mining Corp. (CSE: BNKR; OTCQB: BHLL), joins us to discuss the details of the key financing package and offtake agreement to put the Bunker Hill Mine back into production in the 4th quarter of 2024.
Key highlights are as follows:
- $67 million term sheet executed, increasing Sprott Streaming commitment to the mine restart to $96 million
- $46 million Stream: previously proposed $37 million Stream increased by $9 million with no change to economic terms, resulting in a materially lower cost of capital for Bunker Hill shareholders
- $21 million new debt facility: available for draw at the Company’s election for two years
- Series 1 and Series 2 Convertible Debenture maturities ($21 million total) extended to March 31, 2026
- Royalty Convertible Debenture to convert to royalty upon closing of the Stream, as previously planned
- Subsidiary of Teck Resources Limited (Teck) exercises option for minimum 5-year, 100% offtake of Bunker Hill’s zinc and lead concentrates at its smelter in Trail, BC, ensuring a long-term, sustainable revenue source
Richard goes on to explain the robustness of the Pre-Feasibility Study released to the market last November, underpinning the value of the Project for equity holders, and also outlines a number of areas where the plan can run at a higher throughput and better costs. Additionally, there are areas of the financial agreements that can be improved over time to further enhance the economics moving forward.