America’s ‘most storied mine’ under new management as Bunker Hill aims at restart

Using a Canadian shell company to advance the acquisition of the erstwhile base metals mine, president and CEO Bruce Reid told Mining Weekly Online in an interview that the company plans to rebrand as Bunker Hill Mining in the coming weeks, to better reflect its involvement with the legendary flagship asset.

He has tried to buy the mine twice before, and his dream finally came a step closer to fruition when the company in August inked a definitive accord to buy the storied asset from vendor Placer Mining.

The acquisition will include all mining rights and claims, surface rights, existing infrastructure at Milo Gulch, machinery and buildings at the Kellogg Tunnel portal level, as well as all underground equipment and infrastructure.

The acquisition would also include all current and historic data relating to the Bunker Hill mine complex, such as drill logs, reports, maps, level plans and similar information located at the mine site, or any other location.

Under the terms of the deal, the price for the Bunker Hillassets is $45-million. Liberty has already made a payment of $150 000 and another $3.5-million is due at closing. Half the total purchase price will be paid over five years in annual instalments from the closing date of the deal. Under the terms of the agreement, Bunker Hill will have the right to purchase the mine at any time before the end of the lease and any extension for a purchase price of $45-million, with purchase payments to be made over a ten-year period to Placer Mining.

Supported by strong fundamentals, including a growing supply gap, the zinc price has improved by about 17% since the start of the year, with London Metals Exchange cash prices closing at $3 113/t on Tuesday.