Bunker Hill Mining Corp. Shares Issuance Announcement Details

Understanding Bunker Hill's Recent Share Issuance

Bunker Hill Mining Corp. announces an important decision concerning its financing strategy. This decision involves the issuance of shares to meet its interest payment obligations on convertible debentures. Instead of cash payments, the company will be issuing shares which is an interesting method to manage its financial responsibilities.

Details of the Share Issuance

As per the announcement, Bunker Hill will issue a total of 5,175,000 shares of common stock to holders of its convertible debentures as a way to satisfy the interest payment due. Specifically, this payment is approximately USD$517,500. There are two types of convertible debentures involved, namely the Series 1 and Series 2 Convertible Debentures. These particular debentures have maturity dates set for 2028 and 2029, respectively.

Pricing Details

The shares will be issued at a price of USD$0.10 per share. This price is calculated based on 90% of the 10-day volume weighted average trading price on the TSX Venture Exchange. The Pricing Period spans from early September and ends before the share issuance date.

Implications of the Transaction

Furthermore, a significant portion of the shares, specifically 4,983,334, will be allocated to a specific investor group managed by Sprott Private Resource Streaming and Royalty Corp. This allocation qualifies as a related party transaction, which under certain regulations, requires specific exemptions as the transaction remains below a particular percentage of the company’s market activities. The strategy suggests a thoughtful approach from Bunker Hill regarding its capital management.

Regulatory Approvals and Conditions

Bunker Hill has indicated that the issuance of these shares hinges upon receiving the necessary regulatory approvals from the TSX Venture Exchange. Additionally, a holding period of four months and one day will apply to these shares according to Canadian securities laws, which means they cannot be traded immediately.

About Bunker Hill Mining Corp.

With a renewed focus under new leadership, Bunker Hill gears up to restart the Bunker Hill Mine. This venture is a crucial step in consolidating its mining interests into a robust portfolio, predominantly in North America. Such moves will enable the company to enhance its overall value and operational efficiency in a competitive market.

Future Prospects

As Bunker Hill continues to evolve, it aims to address both immediate financial obligations and long-term growth strategies. The handling of convertible debentures through share issuances reflects a proactive approach in an industry faced with volatility. Stakeholders and investors remain keenly interested in how these strategies will unfold in the mining sector.

Frequently Asked Questions

What is the purpose of issuing shares instead of cash payments?

The shares are issued to fulfill interest payment obligations on convertible debentures, allowing the company to conserve cash for operational needs.

How does the pricing for the shares work?

The shares will be priced at USD$0.10 each, based on a percentage of the average trading price over a specific period.

Who will receive the majority of the shares?

A significant portion of the shares will be issued to Sprott Private Resource Streaming and Royalty Corp., which is a related party in this transaction.

What regulatory approvals are needed for this transaction?

Approval from the TSX Venture Exchange is required to proceed with the share issuance.

What is the future outlook for Bunker Hill Mining Corp.?

The company plans to restart the Bunker Hill Mine and consolidate its operations to enhance value, demonstrating its commitment to sustainable mining practices.

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