Bunker Hill Mining Corp. Reports That It Has Successfully Renegotiated Its Option Agreement
TORONTO, Nov. 23, 2020 (GLOBE NEWSWIRE) -- Bunker Hill Mining Corp. (the “Company”) (CSE: BNKR) is pleased to announce that it has successfully renegotiated its
option agreement for the purchase of a 100% interest in the saleable assets at the Bunker Hill Mine complex from Placer Mining Corporation (the "Lessor"). Under the new terms, the purchase price
has been decreased by 30% from USD11.0 million to USD7.7 million.
Sam Ash, CEO of Bunker Hill Mining, stated:
“We are very pleased to have successfully negotiated a lower purchase price for the option agreement as it allows us to further focus our efforts on the ongoing high-grade silver exploration campaign and the mining restart plan. Under the terms of the agreement, we will be able to continue to explore, finalize the studies, and restart mining activities before being required to exercise the purchase option in August 2022. This offers a unique opportunity to optimize our working capital requirements and focus our balance sheet on the development of the asset.
Our silver-focused exploration program is continuing to progress well and we are excited to publish drill results in the upcoming weeks. We have recently completed 6,000 feet of drilling from surface and are now moving the drill rigs to underground platforms to avoid any winter-related delays.”
Bunker Hill Mining’s option agreement expires on August 1, 2022. Under the new terms of the amended agreement, the total consideration has been reduced by 30% to USD7.7 million, consisting of USD5.4 million payable in cash and USD 2.0 million in shares of the Company. The reference price for the payment in shares will be based on the share price of the last equity raise before the option is exercised. The Company will continue to make a monthly care and maintenance payment of USD60,000 to the Lessor in return for on-going technical support to the Company. Under the amended agreement, the Company’s contingent obligation to settle USD1.8 million of accrued payments due to the Lessor, if the Company decides not to exercise its right to purchase, has been waived. Under the amended agreement, the Company is to make an advance payment of USD2.0 million to the Lessor which shall be credited toward the purchase price of the Bunker Hill Mine when the Company elects to exercise its purchase right.