Bunker Hill Announces Election to Issue Shares In Satisfaction of Interest Payment Obligations
Bunker Hill issued discounted equity to service debt and preserve cash as its pre-revenue mine ramps up.
Bunker Hill Mining Corp. (BNKR) has elected to satisfy outstanding interest payments due June 30, 2026, by issuing 522,296 common shares, referred to as "Interest Shares," rather than making cash payments. This issuance covers interest on Series 1 Secured Convertible Debentures (5.0%, maturing Mar 2028), Series 2 Secured Convertible Debentures (5.0%, maturing Mar 2029), and a 10.0% Loan Facility (maturing Jun 2030).
The shares are priced at $3.42 per share, calculated as 90% of the 10-day VWAP during the June 15–26, 2026 pricing period. Of the total issued, 518,600 shares are allocated to managed accounts of Sprott Private Resource Streaming and Royalty Corp., constituting a related-party transaction exempt from formal valuation and minority shareholder approval under MI 61-101.
The issuance remains subject to regulatory and stock exchange approvals, with a four-month-and-one-day hold period applying under Canadian securities laws. The shares are unregistered in the U.S.
Bunker Hill Mining Corp. (BNKR) executed a debt-for-equity swap, a financing mechanism frequently utilized by pre-revenue mining developers to conserve working capital. The transaction involved shares priced at $3.42, representing a discount of approximately 25–30% to the company’s recent market trading range of $4.50–$6.00. This pricing structure introduces near-term dilution for existing shareholders.
The move follows a pattern established in December 2025 and March 2026, when similar interest settlements were completed through share issuance. The market has already accounted for this recurring financing behavior. The decision aligns with management’s stated priority to preserve cash for the ramp-up phase while maintaining debt service obligations.
There is no change to operational timelines, mine restart status, or exploration plans. The impact of the transaction is neutral to slightly negative due to the discount dilution, but the event is considered operationally routine and expected.
Bunker Hill Mining Corp. is restarting the historic Bunker Hill Mine in Idaho's Coeur d'Alene Mining District, which produced over 165 moz of silver and 4.5 Mt of base metals before closing in 1981. The project features a newly built 1,800 tpd processing facility with a 2,500 tpd expansion target, referred to as "Bunker 2.0." Mining operations utilize long-hole open-stoping with paste backfill, and concentrates are trucked to Teck's Trail Smelter with no smelter penalties.
The company has expanded its land package to over 6,200 acres through the acquisition of the Ranger-Page property, integrating AI-driven exploration via the VRIFY DORA platform to identify high-grade silver-lead targets. The project is positioned to supply critical zinc, lead, and silver to the U.S. domestic supply chain, with strategic partnerships in the U.S. Cornerstone and Defense Industrial Base Consortia.