Bunker Hill Mining Corporation is pleased to announce a brokered best efforts equity private placement for up to C$10,000,000.
Sprott Capital Partners LP will act as lead agent, for a syndicate of agents (the “Agents”), to complete a best efforts brokered private placement of up to 28,571,429 units of the Company (“Units”) at C$0.35 per Unit (the “Offering”). Each Unit will consist of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each whole Warrant entitles the holder to acquire one Common Share at a price of C$0.50 per Common Share for a period of three years. The Offering is subject to an over-allotment option allowing the Company to issue an additional up to 4,285,714 Units on the same terms.
The net proceeds from the Offering shall be primarily used for the exploration of the high grade silver potential of the Bunker Hill Mine, lease and other payments required to keep the Company’s option interest in Bunker Hill Mine in good standing, and for general corporate and working capital purposes.
The Agents will be paid a cash commission (the “Agents’ Fee”) equal to 6.0% of the gross proceeds from the Offering. In addition, the Agents will be issued warrants of the Company exercisable for a period of 36 months following the closing of the Offering to acquire in aggregate that number of Units which is equal to 6% of the number of Units sold under the Offering (including any Units sold under the over-allotment option) at an exercise price equal to C$0.35 (the “Broker Warrants”). The Agents shall receive a 2% Agents’ Fee and 6% Broker Warrants in respect of specified gross proceeds from the President’s List.
The Offering is expected to close on or about August 11, 2020 and will be subject to receipt of all necessary regulatory approvals. The Units and securities underlying them will be subject to a six month hold period in accordance with applicable securities laws.
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
The Company is also pleased to announce that it has entered into an extension agreement with Placer Mining Corporation (“Placer”) to extend the lease with the option to purchase agreement for the Bunker Hill Mine (the “Lease”) between the Company and Placer for an additional six-month term subject to the same terms and conditions of the Lease. The term of the extension will begin on August 2, 2020 and will expire on February 1, 2021.
About Bunker Hill Mining Corp.
Bunker Hill Mining Corp. has an option to acquire 100% of the Bunker Hill Mine. Information about the Company is available on its website, www.bunkerhillmining.com, or within the SEDAR and EDGAR databases.
For additional information contact:
Sam Ash, President and Chief Executive Officer
+1 208 786 6999