Bunker Hill and Silver47 Announce Merger to Create a 'Made in America' U.S. Silver & Critical Minerals Champion

Bunker Hill Mining Corp. (BNKR) has entered a definitive arrangement agreement dated August 20, 2026, to acquire 100% of Silver47 Exploration Corp. through a British Columbia plan of arrangement. Under the terms of the deal, Silver47 shareholders will receive 0.1724 Bunker Hill shares for each Silver47 share held. This exchange ratio implies a value of approximately US$0.67 or C$0.93 per Silver47 share, representing a 38% premium to Silver47’s last TSXV close and a 30% premium to its 20-day volume-weighted average price. Silver47’s implied fully diluted in-the-money equity value is approximately US$163 million.

Following the transaction, post-transaction ownership is expected to be approximately 57% existing Bunker Hill shareholders and 43% Silver47 shareholders on a basic basis. The combined company intends to seek a name change to “Bunker Hill Silver Corp.” while remaining listed on the TSX; Silver47 would delist from the TSXV and Frankfurt. The pro forma basic market capitalization is stated at US$326 million. The combined mineral resource inventory is reported at 80 moz AgEq measured and indicated and 308 moz AgEq inferred.

Regarding production, Bunker Hill Mine commercial production is targeted for Q4 2026. Production is expected to ramp from over 980 koz AgEq in 2026 to over 2,500 koz AgEq in 2027, then toward over 5 moz AgEq per year via a 2,500 tpd “Bunker Hill 2.0” expansion. The 2026–2027 production figures are footnoted as “based on analyst consensus projections.”

Concurrent with the acquisition, Bunker Hill has secured a US$10 million concentrate prepayment facility with Ocean Partners and a US$1 million draw under the existing Teck standby facility. Additionally, Silver47 agreed to use commercially reasonable efforts to provide an unsecured debt facility of up to US$5 million to Bunker Hill, subject to definitive documentation.

Voting support for the transaction includes approximately 6.3% of Silver47 shares locked up in support and approximately 51.5% of Bunker Hill shares locked up, including holdings by Sprott and Teck. Shareholder meetings are required by no later than November 15, 2026, with court approval, TSX/TSXV approval, and customary closing conditions also applying. Termination fees include approximately US$6.6 million payable by Bunker Hill to Silver47 in certain Bunker Hill termination scenarios, and approximately US$5.7 million payable by Silver47 to Bunker Hill in certain Silver47 termination scenarios.

Bunker Hill Mining Corp. (BNKR) has entered into a transformative merger agreement that creates a materially larger combined entity, positioning the company as a “U.S. silver and critical minerals champion.” The transaction adds a substantial U.S. silver resource pipeline and incorporates assets located in Alaska, Nevada, and New Mexico. Under the terms of the all-share deal, Bunker Hill shareholders will hold 57% of the new entity, which will possess 80 moz AgEq measured and indicated (M&I) resources and 308 moz AgEq inferred resources. This stands in contrast to Bunker Hill’s standalone resource base prior to the merger.

The acquired Silver47 assets are predominantly early-stage, with the resource base consisting overwhelmingly of inferred material: 308 moz AgEq inferred versus only 80 moz AgEq measured and indicated. Inferred resources carry high geological and conversion risk. Bunker Hill is paying approximately US$163 million in equity for these assets, a structure that dilutes existing Bunker Hill shareholders by roughly 43%.

The company remains pre-revenue and liquidity-constrained. At June 30, 2026, Bunker Hill reported zero revenue, cash of $6.7 million, negative working capital of roughly $11.8 million, and total debt of $98.5 million. The merger does not by itself resolve Bunker Hill’s immediate working-capital tightness. The accompanying funding is described as debt-like, comprising a $10 million concentrate prepayment, a $1 million Teck draw, and a possible Silver47 $5 million facility that remains subject to documentation.

Headline production figures for 2026 and 2027 are based on analyst consensus projections rather than newly completed technical-study production guidance. The deal has secured strong voting support from Teck and Sprott, which improves the probability of closing, while Silver47’s locked-up support is modest at 6.3%.

Bunker Hill Mining Corp. (BNKR) is restarting the historic Bunker Hill Mine, a lead-silver-zinc operation located in Idaho’s Coeur d’Alene / Silver Valley district. The site produced 42.8 million tons of ore over approximately 95 years, averaging 8.4% lead, 4.5% zinc, and 3.5 oz/ton silver, before closing in 1981. The mine is being brought back online with a newly built 1,800 tpd processing plant.

Operational milestones have progressed through mid-2026. First concentrate was produced in late June 2026, followed by an announcement on July 31, 2026, regarding the first concentrate shipment to Teck’s Trail Smelter. A first production stope blast was announced on August 17, 2026, with commercial production targeted for Q4 2026. The company plans to expand operations to 2,500 tpd, known as Bunker Hill 2.0, aiming for an approximately 50/50 silver-to-base-metals revenue mix.

Resource estimates for Bunker Hill include a measured and indicated category of 7.0 Mt at 1.00 oz/t silver, 2.40% lead, and 5.44% zinc, alongside an inferred category of 6.9 Mt at 1.52 oz/t silver, 2.87% lead, and 4.96% zinc.

The company is also acquiring the adjacent Ranger-Page property, which contains six historic high-grade silver mines and recent high-grade intercepts, including 10.2 ft of 162 g/t Ag, 19.7% Zn, and 19.4% Pb. Additionally, Silver47 assets are being acquired, comprising:

• Red Mountain, Alaska: inferred 15.6 million tonnes at 336 g/t AgEq for 168.6 moz AgEq.
• Hughes, Nevada: indicated 10.3 moz AgEq; inferred in-situ 32.9 moz AgEq; inferred tailings 2.74 moz AgEq.
• Mogollon, New Mexico: inferred 32.1 moz AgEq.