Bunker Hill to receive massive financing package
| May 26, 2023 1:00 AM
KELLOGG – The Bunker Hill Mining Corp. on Wednesday announced a $67 million finance package with Sprott Private Resource Streaming & Royalty Corp.
The deal allows them to receive funds without giving up equity or ownership.
The package consists of a $46 million multi-metals Stream expected to be funded in June 2023, and a commitment for a $21 million new debt facility.
“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,” Bunker Hill CEO Sam Ash said in a press release.
Including previous funds, Sprott Streaming’s total commitment to the Bunker Hill Mine restart would increase to $96 million.
“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,” Ash said.
The company also reported that Teck has exercised its option, as announced on March 31, 2022, to acquire 100% of the zinc and lead concentrate production from the Bunker Hill Mine for a five-year period. That deal is expected to be finalized soon.
With project financing secured, the company plans to recommence engineering and construction activities, targeting first concentrate production by the end of 2024 and then commercial production.
Process plant engineering is about 90% complete with full completion projected to take about three months.
Mine infrastructure efforts will initially be focused on upgrading the old Russell Portal to a production-ready condition, finalizing the installation of line power to the Reed Landing, and continuing scheduled rehabilitation activities in the mine, the release said.
“Under new Idaho-based leadership, the Bunker Hill Mining Corp. intends to sustainably 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 release said.