Bunker Hill Mining arranges $1.5-million (U.S.) loan

Jun 19, 2018

2018-06-19 09:10 ET – News Release

Mr. Bruce Reid reports

BUNKER HILL MINING ANNOUNCES PRIVATE PLACEMENT CONVERTIBLE DEBT FINANCING & GRANT OF OPTIONS

Bunker Hill Mining Corp. has entered into a loan and warrant agreement with an arm’s-length investor for an unsecured convertible loan in the aggregate sum of $1.5-million, bearing interest at 10 per cent per year and maturing in one year. Contemporaneously, the company agreed to issue 2,294,835 share purchase warrants, entitling the lender to acquire 2,294,835 common shares of the company at a price of 85 cents per share for two years.

Convertible debt financing

Under the terms of the loan agreement, the lender may, at any time prior to maturity, convert any or all of the principal amount of the loan and accrued interest thereon into common shares of Bunker at a price per share equal to 85 cents.

In the event that a notice of conversion would result in the lender holding 10 per cent or more of the company’s issued and outstanding shares, then, in the alternative and under certain circumstances, the company would be required to pay cash to the lender in an amount equal 85 cents multiplied by the number of shares intended to be issued upon conversion. Further, in the event that the lender holds more than 5 per cent of the issued and outstanding shares of the company subsequent to the exercise of any of its convertible securities held under this placement, it shall have the right to appoint one director to the board of Bunker. Lastly, among other things, the loan agreement further provides that, for as long as any amount is outstanding under the convertible loan, the investor retains a right of first refusal on any Bunker financing or joint venture/strategic partnership/disposal of assets.

The proceeds of the loan shall be used to pay the company’s coming payment obligation to the U.S. Environmental Protection Agency and for general working capital.

Grant of options

The company has granted senior management and executives incentive stock options to purchase up to an aggregate of 480,000 common shares, exercisable for five years at a strike price of 85 cents.

Completion of the transactions set out in this news release are subject to the approval of the Canadian Securities Exchange.

About Bunker Hill Mining Corp.

Bunker Hill Mining has an option to acquire 100 per cent of the Bunker Hill mine. The Bunker Hill mine was the largest producing mine in the Coeur d’Alene zinc, lead and silver mining district in northern Idaho. Historically, the mine produced over 35 million tonnes of ore grading on average 8.76 per cent lead, 3.67 per cent zinc and 155 grams per tonne silver (Bunker Hill Mines annual report, 1980).

We seek Safe Harbor.

http://www.bunkerhillmining.com/news/