Understanding Bunker Hill's Recent Share Issuance Updates
KELLOGG, Idaho and VANCOUVER, British Columbia - Bunker Hill Mining Corp. (“Bunker Hill” or the “Company”) (TSXV:BNKR | OTCQB:BHLL) has made significant updates regarding its decision to issue shares. This move is aimed at managing its financial obligations, which include the payment of interest on convertible debentures and associated financing cooperation fees. By issuing shares as a strategy, the Company seeks to not only meet its financial obligations but also conserve cash for ongoing operations.
What are Convertible Debentures?
Convertible debentures are a type of debt security that can be converted into a specific number of shares of the issuing company. In Bunker Hill's case, the Company plans to issue a total of approximately 8,446,194 common shares to fulfill specific financial obligations. This will include around 7,392,859 shares to cover interest payments on its convertible debentures due by the end of the year. These payments amount to approximately USD$517,500. To achieve this goal, Bunker Hill will execute the issuance at a market-based price of USD$0.07 per share.
Adjustments to Interest Shares Issuance
In a recent adjustment, Bunker Hill revised its earlier announcement regarding the total number of Interest Shares. It now plans to issue approximately 7,119,049 shares to certain accounts managed by Sprott Private Resource Streaming and Royalty Corp. (herein referred to as “Sprott”). This transaction qualifies as a related party transaction, categorized under Multilateral Instrument 61-101. The Company will utilize exemptions from detailed valuation processes, maintaining compliance with regulatory obligations as the value does not reach the critical threshold of 25% of Bunker Hill's market capitalization.
Details of Financing Cooperation Fees
Bunker Hill has also detailed its plans concerning financing cooperation fees due to a service provider. Under an agreement dated September 27, 2022, the Company will issue up to 509,480 common shares to provide satisfaction of a USD$60,000 fee owed to the service provider for collateral security. Additionally, an issuance of 543,855 common shares is anticipated to clear another financing fee of equal value.
Significance of Share Issuance
This share issuance is pivotal for Bunker Hill as it allows the Company to maintain liquidity essential for the potential revival of operations at the Bunker Hill Mine. By opting for shares instead of cash, Bunker Hill showcases its strategic approach to funding while positioning itself to optimize its resources and development plans effectively.
Regulatory Considerations and Future Actions
It's noteworthy that the issuance of Interest Shares and Settlement Shares is subject to obtaining all necessary regulatory approvals, specifically from stock exchanges. Once these shares are issued, they will endure a hold period as mandated by Canadian securities laws, which requires a four-month and one-day waiting period from the date of issuance.
About Bunker Hill Mining Corp.
Bunker Hill Mining Corp. operates under Idaho-based leadership and aims to sustainably restart the Bunker Hill Mine. Their overarching goal is to consolidate and enhance various mining assets, ultimately creating a high-value operational portfolio primarily focused in North America. More information about the Company can be found on their official website.
Contact Information
For further inquiries, Bunker Hill’s representatives can be reached as follows:
Sam Ash
President, Chief Executive Officer and Director
Brenda Dayton
Vice President, Investor Relations
T: 604.417.7952
E: brenda.dayton@bunkerhillmining.com
Frequently Asked Questions
What is the purpose of Bunker Hill issuing common shares?
The issuance of common shares allows Bunker Hill to meet its financial obligations and maintain liquidity for ongoing mining operations.
How many shares is Bunker Hill planning to issue?
Bunker Hill plans to issue a total of about 8,446,194 common shares to fulfill interest payment obligations and financing cooperation fees.
What are Convertible Debentures?
Convertible debentures are debt securities that can be converted into shares of the issuing company, allowing companies to fund operational costs without immediately using cash.
Who will receive the issued shares?
The shares will be issued to holders of convertible debentures and a service provider as part of agreement settlements.
Where can I find more information about Bunker Hill?
Additional information about Bunker Hill Mining Corp. can be accessed on their official website and through financial databases.
