Bunker Hill Mining Corp. (CSE: BNKR) is pleased to announce the closing of the upsized and improved $67 million financing package with Sprott Private Resource Streaming & Royalty Corp. previously announced on May 23, 2023, including the $46 million multi-metals stream and $21 million debt facility. All figures are in US dollars unless otherwise stated.

Sam Ash, CEO, stated “We are exceedingly pleased to announce the closing of our $67 million financing package with Sprott Streaming. This marks a breakthrough moment for Bunker Hill, backstopping completion of the mine restart, materially strengthening our balance sheet, and enabling full-scale recommencement of project activities. We look forward to updating investors on progress over the coming months.”

On June 23, 2023, all conditions were met for the closing of the Stream and Debt Facility, and $46 million was advanced to a subsidiary of the Company in connection with closing of the Stream, less $5 million for the repayment of a bridge loan (plus accrued interest) between the parties, partial repayment of a promissory note, and transaction costs.

The Company has elected not to draw any of the $21 million under the Debt Facility at this time, while it focuses on recommencing project restart activities and continues to evaluate non-dilutive financing opportunities that could be secured in lieu of drawing on the Debt Facility. The Debt Facility will be available for draw, at the Company’s election, for a period of two years, on the terms noted in the Company’s news release of May 23, 2023.

As planned, a series of related transactions also took place concurrently with closing of the Financing Package. Firstly, the royalty convertible debenture previously issued by the Company to Sprott Streaming was repaid by the Company granting a life of mine gross revenue royalty of 1.85% and 1.35% from certain primary and secondary claims comprising the Bunker Hill Mine. In addition, the maturity dates of the series 1 convertible debentures and the series 2 convertible debentures previously issued by the Company to Sprott Streaming were amended to March 31, 2026, when the full $6 million and $15 million, respectively, will become due.

With the funding of the Stream, the conditions have been met for a pre-negotiated $2 million increase in a payment bond with the U.S. Environmental Protection Agency (the “U.S. EPA”), which will release a further $2 million of cash to support project activities from the Company’s restricted cash balances. This is expected to occur in July 2023.

Further information regarding the terms of the Financing Package and the related transactions referenced herein can be found in the Company’s news release of May 23, 2023. The material terms of the Financing Package are unchanged from those previously announced.

RELATED PARTY TRANSACTION

The Stream and Debt Facility each constitute a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The directors of the Company, all of whom are considered independent pursuant to Part 7 of MI 61-101, have unanimously determined that the transactions comprising the Financing Package are advisable and in the best interests of the Company, and that the Stream and Debt Facility are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to the “financial hardship” exemptions provided, respectively, under Section 5.5(g) and 5.7(1)(e) of MI 61-101.

ABOUT BUNKER HILL MINING CORP.

Under new Idaho-based leadership, 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. Information about the Company is available on its website, www.bunkerhillmining.com, or within the SEDAR and EDGAR databases.