Bunker Hill Announces Closing of "Bought Deal" Private Placements of Units for Gross Proceeds of Approximately C$52 Million
Executive Summary
- Bunker Hill Mining Corp. closed a bought‑deal private placement of units raising total gross proceeds of C$51.85 million (C$24.75 M CAD Offering + US$19.60 M ≈ C$27.10 M USD Offering).
- The net proceeds are earmarked to fund construction, start‑up and ramp‑up of the Bunker Hill Zinc‑Silver‑Lead Mine in Idaho’s Silver Valley.
- Teck Resources became a major shareholder, now holding ~32.6% (non‑diluted) of outstanding common shares and ~45.6% on a partially diluted basis after the offering.
Key Details
- Units Issued:
- CAD Offering – 206,250,000 units at C$0.12 per unit → C$24,750,000 gross proceeds (includes full underwriter over‑allotment).
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USD Offering – 225,000,000 units at US$0.08711 per unit → US$19,599,750 gross proceeds (≈ C$27,104,494).
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Total Gross Proceeds: C$51,854,494.2.
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Unit Composition: Each unit = 1 common share + 1 common‑share purchase warrant.
- Warrant exercise price: C$0.17 per share.
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Warrants exercisable for 60 months from issuance.
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Lead Underwriter & Syndicate: Conducted by a lead underwriter acting on its own and on behalf of a syndicate; specific names not disclosed.
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Use of Proceeds: To support construction, start‑up and ramp‑up of the Bunker Hill Zinc‑Silver‑Lead Mine (Silver Valley, Idaho).
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Teck Resources Participation:
- Subscribed to 223,786,706 units of the USD Offering.
- Pre‑offering holdings: 219,079,378 common shares + warrants for an additional 100,598,716 shares (~23.6% non‑diluted).
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Post‑offering holdings: 442,866,084 common shares + warrants for an additional 324,385,422 shares (~32.6% non‑diluted; ~45.6% partially diluted).
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Compensation & Finder Fees:
- Cash fees to underwriters: C$1,455,480 and US$1,175,985.
- Underwriters received 25,325,428 non‑transferable compensation options (6% of gross proceeds, plus 3% on President’s List sales).
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Finder cash fee: C$52,005 (3.333% of CAD Offering gross proceeds) and 520,052 compensation options (4% of units sold to introduced subscribers).
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Related‑Party Transaction: The offering is a related‑party transaction under MI 61‑101; the company relied on exemptions after obtaining consent from an arm’s‑length control person.
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Regulatory Notices:
- Early warning reports filed per NI 62‑104/62‑103 will be posted on SEDAR+.
- Securities subject to a statutory hold period of four months and one day in Canada (expires 2026‑01‑30) and a minimum six‑month U.S. hold period.
Notable Quotes
- Sam Ash, President & CEO: “The successful closing of this financing provides the capital needed to move the Bunker Hill Mine forward into construction and ultimately commercial production, positioning the Company for long‑term value creation.”