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Bunker Hill Mining Announces Equity Issuance to Teck
TORONTO, March 31, 2022 (GLOBE NEWSWIRE) -- Bunker Hill Mining Corp. (the “Company”) (CSE: BNKR, OTCQB: BHLL) is pleased to announce it has reached an agreement
About this update from Bunker Hill Mining Corp
[{"type":"text","content":" TORONTO, March 31, 2022 (GLOBE NEWSWIRE) -- Bunker Hill Mining Corp. (the “Company”) (CSE: BNKR, OTCQB: BHLL) is pleased to announce it has reached an agreement with a subsidiary of Teck Resources Limited (“Teck”) to satisfy the remaining purchase price for the Pend Oreille Mill, for which an executed Asset Sale and Purchase Agreement (the “APA”) was announced on March 7, 2022, in an equity issuance of the Company. Sam Ash, CEO stated, “I am very pleased to welcome Teck as a significant shareholder in Bunker Hill while completing our purchase obligations for the Pend Oreille Mill. With the Trail Smelter as the natural home for Bunker Hill’s future concentrate production, we are excited to lay the groundwork for a potential long-term offtake relationship and broader strategic partnership with Teck.” The APA contemplated a total purchase price to be paid to Teck of US$2,750,000 in cash, or US$3,000,000 in cash and shares. A non-refundable deposit of US$500,000 was previously paid towards the purchase price. Teck has agreed to a non-brokered equity issuance (the “Equity Issuance”) to satisfy the remaining portion of the purchase price. Teck will receive 10,416,667 Units of the Company priced at C$0.30. Each Unit consists 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$0.37 per Common Share for a period of three years. The Units and securities underlying them will be subject to a customary four month and a day hold period in accordance with applicable Canadian securities laws and to a concurrent six month hold period in accordance with applicable U.S. securities laws. The Equity Issuance is subject to receipt of all necessary regulatory approvals and closing. The Company has also agreed to grant Teck an exclusive option to acquire 100% of the zinc and lead concentrate production from the Bunker Hill Mine for an initial term of 5 years after the mine has commenced production of concentrates, subject to annual renewal and mutual cancellation rights thereafter. The option will be exercisable at Teck’s election until March 31, 2023, with commercial terms to be based on applicable annual benchmarks and other commercially reasonable legal terms as mutually agreed. The Equity Issuance is expected to...