Bunker Hill Mining Corp. Takes Steps to Manage Debt Obligations
KELLOGG, Idaho and VANCOUVER, British Columbia — Bunker Hill Mining Corp. (TSXV:BNKR | OTCQB:BHLL) has recently announced a significant move to address its interest obligations through the issuance of shares. This initiative is a clear indication of the company's commitment to maintaining its financial health while pursuing growth in the mining sector.
Details of Share Issuance
The company will issue a total of 15,378,473 shares of common stock, referred to as the “Interest Shares,” as a means to satisfy interest payments on various debt instruments. Specifically, the breakdown includes: 1,291,667 shares for 5.0% Series 1 secured convertible debentures, totaling US$103,333.33; 4,260,417 shares for 5.0% Series 2 secured convertible debentures, amounting to US$340,833.33; and 9,826,389 shares linked to a loan facility generating interest of US$786,111.11. Notably, the Series 1 Debentures and Series 2 Debentures will mature in 2028 and 2029, respectively, while the loan facility is set to mature in 2030.
Pricing Structure of the Shares
The Interest Shares will be issued at a price of USD$0.08 per share, which is calculated based on the 10-day volume weighted average trading price on the TSX Venture Exchange across a predefined Pricing Period. Such a strategy reflects Bunker Hill's proactive approach to managing interest payments efficiently.
Transaction Overview and Regulatory Compliance
In line with the issuance, Bunker Hill will allocate 15,163,195 Interest Shares to managed accounts of Sprott Private Resource Streaming and Royalty Corp. This transaction is categorized as a “related party transaction” under applicable regulations. Bunker Hill intends to utilize exemptions under the regulations which would circumvent the need for formal valuation or minority shareholder approval, due to the transaction's value not exceeding 25% of the company's market capitalization.
Regulatory Framework
The issuance of the Interest Shares requires adherence to the terms of the Debt Instruments and is subject to receiving all necessary regulatory approvals, including that from the TSX-V. Once distributed, the shares will be subject to a four-month and one-day holding period, ensuring compliance with Canadian securities laws.
Company Profile and Future Plans
Based in Idaho, Bunker Hill Mining Corp. is focused on the sustainable restart and development of the Bunker Hill Mine. The company aims to establish itself as a key player in the North American mining sector by consolidating its assets into a valuable operations portfolio. The details of Bunker Hill’s progress and developments can be accessed through their official website.
Leadership Commitment
Sam Ash, President and CEO of Bunker Hill, emphasizes the importance of these strategic decisions as the company prepares for its next steps in the mining industry.
Contact Information for Inquiries
For further inquiries, please reach out to Brenda Dayton, Vice President of Investor Relations, at 604.417.7952 or via email at brenda.dayton@bunkerhillmining.com.
Frequently Asked Questions
What are the Interest Shares being issued by Bunker Hill?
The Interest Shares are a total of 15,378,473 shares issued to meet the company's interest payment obligations on its debt instruments.
How will the share price be determined?
The share price for the Interest Shares is set at USD$0.08, based on the 10-day volume weighted average trading price during a specified Pricing Period.
What does the related party transaction involve?
A significant portion of the Interest Shares will be issued to Sprott Private Resource Streaming and Royalty Corp., categorized as a related party transaction due to its nature and association.
What regulations govern the issuance of these shares?
The issuance is subject to terms outlined in the Debt Instruments and requires regulatory approval, particularly from the TSX Venture Exchange.
Where can I find more information about Bunker Hill Mining Corp.?
More information regarding Bunker Hill Mining Corp. and its projects can be found on its official website and through filings on SEDAR+ and EDGAR.
