Bunker Hill Announces Entry Into Silver Loan Facility, Closing of the First Tranche and Amendments to Sprott Streaming Financing Package

TORONTO, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Bunker Hill Mining Corp. (“Bunker Hill” or the “Company”) (TSX-V:BNKR; OTCQB:BHILL) announces that it has entered into definitive agreements with Monetary Metals Bond III LLC, an entity established by Monetary Metals & Co., for the previously announced silver loan in an amount of US dollars equal to up to 1.2 million ounces of silver, to be advanced in one or more tranches, in support of the re-start and ongoing development of the Bunker Hill Mine (the “Silver Loan”). The Company has closed the first tranche of the Silver Loan in the principal amount of US$16,422,039, being the amount of US dollars equal to, as of August 8, 2024, 609,805 ounces of silver (the “First Tranche”).

Sam Ash, President and CEO of Bunker Hill Mining, states, “By combining the solid support of our existing finance partner, Sprott Streaming, with our new and innovative Monetary Metals solution, our fully funded project is advancing on track and budget.”

Silver Loan

As described in the news release dated June 7, 2024, the Silver Loan will be for a term of three years, secured against the Company’s assets and repayable in cash or silver ounces. The Silver Loan will bear interest at the rate of 15% per annum, payable in cash or silver ounces on the last day of each quarterly interest period. This financing remains subject to TSX Venture Exchange (the “TSX-V”) approval.

As consideration for advancing the Silver Loan, the Company will issue to Monetary Metals & Co., subject to prior TSX-V approval, non-transferable bonus share purchase warrants (the “Warrants”) in one or more tranches. The number of Warrants issued in each tranche will be equal to: (a) in connection with the First Tranche, two times the number of silver ounces advanced under the First Tranche (the “Base Warrants”) and a bonus ratchet of: (i) 2.5% of the Base Warrants if at least 500,000 and up to 599,999 silver ounces are advanced, (ii) 5.0% of the Base Warrants if at least 600,000 and up to 699,999 silver ounces are advanced, (iii) 10.0% of the Base Warrants if at least 700,000 and up to 799,999 silver ounces are advanced, and (iv) 15.0% of the Base Warrants if at least 800,000 silver ounces are advanced; and (b) in connection with any additional tranches, two times the number of silver ounces advanced under such tranche. In any event, the number of Warrants issuable to Monetary Metals & Co. will not exceed 3,000,000.