Bunker Hill Mining Corp. Moves Forward with Share Issuance Plan

Bunker Hill Mining Corp. Takes Action on Share Issuance

KELLOGG, Idaho and VANCOUVER, British Columbia, December 2024 — Bunker Hill Mining Corp. (“Bunker Hill” or the “Company”) (TSXV:BNKR | OTCQB:BHLL) has made a strategic decision to issue a total of 7,392,859 shares of common stock to fulfill its obligations regarding 7.5% and 10.5% convertible debentures. This issuance will satisfy the interest payment obligations amounting to USD $517,500 as of the recent month-end.

Details of the Convertible Debentures and Interest Shares

According to the terms outlined in the Convertible Debentures, Bunker Hill plans to issue these shares priced at USD $0.07 each. This pricing reflects 90% of the average trading price from the preceding 10 days on the TSX Venture Exchange. The pricing period began on December 9, 2024, and concluded recently.

Related Party Transaction Considerations

The shares will be issued to specific accounts managed by Sprott Private Resource Streaming and Royalty Corp., thus qualifying as a “related party transaction.” Bunker Hill will adhere to applicable exemptions under Multilateral Instrument 61-101 for minority shareholder approvals, as the transaction's value is below the specified threshold based on the Company's market capitalization. Given the timeliness of the vote, the company did not provide a prior material change report.

Regulatory Framework and Conditions

The issuance of Interest Shares must satisfy several regulatory requirements, including approval from the TSX-V. Once released, these shares will have a mandatory holding period of four months and one day.

Financial Cooperation Agreement Details

Bunker Hill's financial strategy also involves a Cooperation Agreement, which includes provisions for collateral security to secure surety bonds for its Bunker Hill Mine. In return for providing this collateral security, Bunker Hill will pay a cooperation fee of US $20,000 monthly, either through shares or cash, at the Company’s discretion.

Settlement Shares Issuance Plan

As part of this agreement, Bunker Hill has chosen to issue 509,480 common shares to satisfy the financing cooperation fee for the third quarter of 2024, and an additional 543,855 common shares regarding the second quarter fee. The price for these shares is based on the volume-weighted average trading price during the relevant periods on the TSX Venture Exchange.

Long-term Vision for Bunker Hill Mine

Bunker Hill Mining Corp. is strategically positioned under Idaho’s leadership, focusing on the sustainable restart of the Bunker Hill Mine. This initiative is a critical step towards consolidating various mining assets into a valued portfolio of operations primarily based in North America. Detailed information about Bunker Hill can be accessed directly from its official website.

Management Overview

The Company is led by President and CEO Sam Ash, who emphasizes the strategic nature of these recent financial decisions as pivotal to Bunker Hill's ongoing operations and development initiatives. With a dedicated team, the Company aims to drive forward its objectives effectively and sustainably.

Frequently Asked Questions

1. What is Bunker Hill Mining Corp.'s recent decision regarding share issuance?

Bunker Hill has elected to issue 7,392,859 shares to meet its convertible debenture interest payment obligations, reflecting their ongoing financial strategy.

2. What are convertible debentures?

Convertible debentures are a type of debt security that can be converted into stock, which provides flexibility for both the issuer and the debenture holders.

3. How will the recent share issuance affect stockholders?

The share issuance is expected to fulfill financial obligations without requiring immediate cash, preserving liquidity for company operations.

4. What is the purpose of the Cooperation Agreement?

The Cooperation Agreement allows Bunker Hill to obtain surety bonds necessary for mining operations through collateral security in exchange for a financing cooperation fee.

5. Where can additional details about Bunker Hill Mining Corp. be found?

More information can be found on the Company's official website and through their profile on SEDAR+ and EDGAR databases.

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