- Bunker Hill (BNKR) has secured a $5 million loan from Sprott Private Resource Streaming & Royalty
- The loan is secured by the security package in place between the parties and will bear interest at 10.5 per cent per year
- The company will allocate the funds toward restarting its Bunker Hill Mine in Idaho
- It expects to advance multi-metals streaming at the mine by Q1 2023
- Offtake financing discussions with Teck Resources and Sprott Streaming & Royalty are ongoing
- Bunker Hill Mining is focused on consolidating a portfolio of North American mining assets with a focus on silver
- Bunker Hill (BNKR) is down by 10.81 per cent, trading at $0.165 per share
Bunker Hill (BNKR) has secured a $5 million loan from Sprott Private Resource Streaming & Royalty.
The company will allocate the funds toward restarting its Bunker Hill Mine in Idaho as follows:
- $3.5 million to the Environmental Protection Agency for outstanding water treatment services from 2019-2021
- $560,000 to the Idaho Department of Environmental Quality for monthly water treatments from November 2022 through February 2023
- $940,000 for project costs and working capital
The security package secures the loan in place between the parties, will bear interest at 10.5 per cent per year and will mature on the earlier of June 30, 2024, or the advance of multi-metals streaming at the Bunker Hill Mine.
The company expects to advance its streaming initiative at the Bunker Hill Mine by Q1 2023.
The loan is conditional on the completion of definitive documentation and the launch of equity financing.
The company is also in discussions with Teck Resources – which holds an exclusive option to acquire 100 per cent of zinc and lead concentrate produced in the first five years at the Bunker Hill Mine – and Sprott Streaming & Royalty to facilitate concentrate offtake financing from third parties for the mine restart.
Bunker Hill is evaluating several non-binding term sheets from metals traders for up to $15 million in offtake financing.
The mine restart project is on track to achieve several key milestones by the end of 2022, including:
- Abatement and demolition of the existing maintenance building
- Completion of the underground decline connecting the 5 and 6 levels within the upper parts of the mine
- Purchase of the ball mill to increase annual production throughput to 2,100 tons per day
Bunker Hill Mining is focused on consolidating a portfolio of North American mining assets with a focus on silver.
Bunker Hill (BNKR) is down by 10.81 per cent, trading at $0.165 per share as of 12:40 pm ET.