Bunker Hill Mining Secures Shares for Debenture Interest Payment
Bunker Hill Mining Enters New Phase of Financing
VANCOUVER, British Columbia – Bunker Hill Mining Corp. (TSXV: BNKR, OTCQB: BHILL) is making significant moves as it aims to fulfill its interest payment obligations under its convertible debentures. In an announcement, the company confirmed that it will issue a total of 5,175,000 shares of common stock, which it refers to as "Interest Shares." This decision allows the company to satisfy obligations regarding its 7.5% and 10.5% convertible debentures.
Understanding the Interest Shares Issuance
The issuance of the Interest Shares came to light as Bunker Hill seeks to manage its financial obligations effectively. Specifically, these shares will cover an interest payment of USD$517,500 scheduled for September 30, 2024. By opting for this share issuance strategy, Bunker Hill continues to demonstrate a proactive approach to its financial management amid fluctuating market conditions.
Details on the Convertible Debentures
The 7.5% convertible debentures, maturing on March 31, 2028, and the 10.5% convertible debentures, maturing on March 31, 2029, are pivotal for the company's financing structure. Bunker Hill's decision to issue shares at USD$0.10 each is based on the recent performance of its stock on the TSX Venture Exchange. This approach not only helps in maintaining liquidity but also in retaining favorable terms under current market dynamics.
Connection with Sprott Resource Management
A significant portion of the Interest Shares, amounting to 4,983,334, will be issued to Sprott Private Resource Streaming and Royalty Corp., which represents a related party transaction. Bunker Hill aims to rely on exemptions to manage formal obligations tied to this transaction, as the issuance is below 25% of the company’s market capitalization. This strategic partnership is crucial for enhancing stakeholder engagement and investor confidence.
Regulatory Compliance and Shareholder Considerations
As with any financial maneuver, Bunker Hill must adhere to regulatory requirements, including receiving necessary approval from the TSX-V. The shares will be subject to a hold period of four months and one day under applicable Canadian securities laws, ensuring transparency and compliance throughout the process.
About Bunker Hill Mining Corp.
Under new leadership, Bunker Hill is focused on restarting and developing the Bunker Hill Mine with a sustainable approach. The company's strategy includes consolidating multiple mining assets into a streamlined, high-value operational portfolio, primarily within North America. This vision underpins Bunker Hill's commitment to responsible mining practices and operational efficiencies.
Management and Contact Information
Sam Ash serves as the President and Chief Executive Officer, steering the company's future initiatives. For those interested in learning more about their efforts or for investor inquiries, Brenda Dayton, the Vice President of Investor Relations, is available at 604.417.7952 or via email. Bunker Hill is committed to open communication with its investors and community.
Frequently Asked Questions
What prompted Bunker Hill to issue Interest Shares?
Bunker Hill elected to issue Interest Shares to cover its interest payment obligations efficiently and maintain liquidity.
Who will receive the majority of the Interest Shares?
The majority of the shares, specifically 4,983,334, will be issued to Sprott Private Resource Streaming and Royalty Corp.
What is the maturity date for the Convertible Debentures?
The Series 1 Convertible Debentures mature on March 31, 2028, while the Series 2 maturing date is March 31, 2029.
How does this issuance affect current shareholders?
The issuance is structured to not exceed 25% of Bunker Hill's market capitalization, helping to mitigate dilution effects on current shareholders.
What steps must Bunker Hill take before issuing the Interest Shares?
Before issuing the Interest Shares, Bunker Hill must obtain approval from the TSX-V and comply with all regulatory requirements, including a four-month hold on the shares.
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