Bunker Hill upsizes financing to restart Idaho mine, agrees offtake
miningweekly.com
25th May 2023
By: Mariaan Webb
Creamer Media Senior Deputy Editor Online
CSE-listed Bunker Hill Mining has announced an upsized and improved project finance package with Sprott Private Resource Streaming and Royalty, which would enable the completion of the restart of its namesake mine in Idaho, US.
The company executed a $67-million term sheet with Sprott, increasing its commitment to the mine restart to $96-million.
The package consists of a $46-million multi-metals stream expected to be funded in June, and a commitment for a $21-million new debt facility that will be available for drawdown for two years at the company’s election.
Including the previously funded $8-million royalty convertible debenture, $6-million Series 1 convertible debenture (the CD1), and $15-million Series 2 convertible debenture (the CD2), Sprott Streaming’s total commitment to the Bunker Hill mine restart will increase to $96-million.
“We are excited to announce an upsized and improved project finance package that we expect to backstop the full financing of the Bunker Hill mine restart, materially strengthen our balance sheet and liquidity, and support our TSX-V application.
“This will enable the full-scale recommencement of project activities and allows us to target a restart of the mine and first concentrate production by the end of 2024,” said CEO Sam Ash.
Bunker Hill also announced that a subsidiary of Teck Resources had exercised an option for a minimum five-year, 100% offtake of the mine’s zinc and lead concentrates at its smelter in Trail, British Columbia.
Under new Idaho-based leadership, Bunker Hill intends to restart and develop the Bunker Hill mine as the first step in consolidating a portfolio of North American mining assets with a focus on silver.
The company aims to achieve first concentrate production by the end of 2024. |
