KELLOG, Idaho and VANCOUVER, British Columbia , Dec. 20, 2024 (GLOBE NEWSWIRE) -- Bunker Hill Mining Corp. (“Bunker Hill” or the “Company”) (TSX-V: BNKR |OTCQB: BHLL) announces it has been advanced the second tranche, in the amount of US$5 million under the senior secured credit facility (the ”Standby Facility”) with Sprott Private Resource Streaming and Royalty Corp. (“Sprott”), pursuant to which Sprott has agreed to advance up to US$21 million under the Standby Facility, to fund development costs of the Company’s Bunker Hill Mine located in Kellogg, Idaho (the “Bunker Hill Mine”), subject to the satisfaction of certain conditions.
Sam Ash, President and CEO, stated, "As we enter the end of an extremely productive year at Bunker Hill, we are pleased to report the advance of Sprott’s second tranche in the amount of US$5 million and provide an update on our work on-site, particularly in the underground. We have readied five stopes for mining in the UTZ area of the upper mine, near the entrance of Russell Portal, and are close to completing the geotechnical stabilization of the main ramp at it cuts the Cate Fault. Once done, the team will complete the rehabilitation of the ramp down to the 8-2 Level and prepare the chosen stopes on that level for mining."
PROGRESS UPDATE - KELLOGG SITE
Grid Power has now been connected to the processing and associated facilities, enabling, amongst other things, the establishment of outside lighting along the conveyors. Work in the Kellogg Yard continues with the conveyors, crusher tower, concentrate load-out facility and the tailings filter press. While inside the concentrator building, the final installation of the mezzanine floors is completed in anticipation of the placement of the remaining floatation cells. Piping and electrical fitting continues, along with the installation of lubrication systems for the mill.
FIGURE 1: LIGHTS COMPLETED ON THE CONVEYORS LINKING THE CONCENTRATOR TO THE CRUSHER AND THE CONCENTRATE LOAD OUT AREA
FIGURE 2: MEZZANINE ACCESS LEVELS INSTALLED AROUND THE MAIN BALL MILL
PROGRESS UPDATE - UNDERGROUND
Operating from the mining base in Wardner, the Company’s underground mining team have nearly completed the stabilization of the ramp as it cuts across the Cate Fault. Once final grouting has been done and power and ventilation reconnected, the teams will recommence with the ramp rehabilitation to the 8-2 Level before preparing stopes there for mechanized long-hole mining.
Closer to the mining base and the Russell Portal and in the UTZ area, the teams have prepared five faces for mechanized cut-and-fill mining whilst concurrently stockpiling underground ore collected during the ramp rehabilitation and associated development work. Essential preparatory work has begun, designed to ensure maximum mine plan optionality during the next commissioning and ramp-up phases of the mine restart.
Further optimization of the mine plan continues alongside ongoing preparation of an updated mineral resource estimate, which the Company plans to issue in Q1 2025.
FIGURE 3: THE GEOTECHNICAL STABILIZATION OF THE MAIN RAMP AS IT CUTS THE CATE FAULT BETWEEN THE 5 AND 6 LEVELS
FIGURE 4: THE REHABILITATION OF THE UTZ AREA AND THE PREPARATION OF 5 STOPES FOR MINING
FINANCING NEXT STEPS
As outlined in the Company’s December 13, 2024 news release, the Company intends to draw in stages upon the Standby Facility, whilst concurrently engaging in negotiations with its strategic partners for potential offtake or similar financing for up to an additional $30 million.
There is no guarantee the Company will satisfy any or all of the conditions of further drawdowns under the Standby Facility. For further details of the Standby Facility, please see the Company’s June 26, 2023 news release.
The Company looks forward to updating shareholders on further successful milestones over the near term.
ABOUT BUNKER HILL MINING CORP.
Under Idaho-based leadership, Bunker Hill intends to sustainably restart and develop the Bunker Hill Mine as the first step in consolidating and then optimizing several mining assets into a high-value portfolio of operations centered initially in North America. Information about the Company is available on its website, www.bunkerhillmining.com, or within the SEDAR+ and EDGAR databases.
On behalf of Bunker Hill Mining Corp.
Sam Ash
President and Chief Executive Officer
For additional information, please contact:
Brenda Dayton
Vice President, Investor Relations
T: 604.417.7952
E: brenda.dayton@bunkerhillmining.com
Cautionary Statements
Neither the TSX Venture Exchange (the “TSX-V”) nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this news release.
Certain statements in this news release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, as well as within the meaning of the phrase ‘forward-looking information’ in the Canadian Securities Administrators’ National Instrument 51-102 – Continuous Disclosure Obligations (collectively, “forward-looking statements”). Forward-looking statements are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, “plan” or variations of such words and phrases.
Forward-looking statements in this news release include, but are not limited to, statements regarding: the Company’s objectives, goals or future plans, including the restart and development of the Bunker Hill Mine and planned geotechnical work; the achievement of future short-term, medium-term and long-term operational strategies; the Company issuing an updated resource estimate in Q1 2025; further draws by the Company on the Standby Facility, including the Company satisfying any or all of the conditions in connection therewith; and the Company securing potential offtake or similar financing for an additional $30 million from its strategic investors. Forward-looking statements reflect material expectations and assumptions, including, without limitation, expectations and assumptions relating to: Bunker Hill’s ability to receive sufficient project financing for the restart and development of the Bunker Hill Mine on acceptable terms or at all; further drilling and geotechnical work supporting the planned restart and operations at the Bunker Hill Mine; the future price of metals; and the stability of the financial and capital markets. Factors that could cause actual results to differ materially from such forward-looking statements include, but are not limited to, those risks and uncertainties identified in public filings made by Bunker Hill with the U.S. Securities and Exchange Commission (the “SEC”) and with applicable Canadian securities regulatory authorities, and the following: the Company’s ability to operate as a going concern and its history of losses; the Company’s inability to raise additional capital for project activities, including through equity financings, concentrate offtake financings or otherwise; the fluctuating price of commodities; capital market conditions; restrictions on labor and its effects on international travel and supply chains; failure to identify mineral resources; further geotechnical work not supporting the continued development of the Bunker Hill Mine or the results described herein; failure to convert estimated mineral resources to reserves; the preliminary nature of metallurgical test results; the Company’s ability to raise sufficient project financing, on acceptable terms or at all, to restart and develop the Bunker Hill Mine and the risks of not basing a production decision on a feasibility study of mineral reserves demonstrating economic and technical viability, resulting in increased uncertainty due to multiple technical and economic risks of failure which are associated with this production decision including, among others, areas that are analyzed in more detail in a feasibility study, such as applying economic analysis to resources and reserves, more detailed metallurgy and a number of specialized studies in areas such as mining and recovery methods, market analysis, and environmental and community impacts and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit, with no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved; the Company requiring additional capital expenditures than anticipated, resulting in delays in the expected restart timeline; failure to commence production would have a material adverse impact on the Company's ability to generate revenue and cash flow to fund operations; failure to achieve the anticipated production costs would have a material adverse impact on the Company’s cash flow and future profitability; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; political risks; changes in equity markets; uncertainties relating to the availability and costs of financing needed in the future; the inability of the Company to budget and manage its liquidity in light of the failure to obtain additional financing, including the ability of the Company to complete the payments pursuant to the terms of the agreement to acquire the Bunker Hill Mine complex; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the development of projects; and capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements in this news release are reasonable, undue reliance should not be placed on such statements or information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all, including as to whether or when the Company will achieve its project finance initiatives, or as to the actual size or terms of those financing initiatives, or whether and when the Company will achieve its operational and construction targets. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Readers are cautioned that the foregoing risks and uncertainties are not exhaustive. Additional information on these and other risk factors that could affect the Company’s operations or financial results are included in the Company’s annual report and may be accessed through the SEDAR+ website (www.sedarplus.ca) or through EDGAR on the SEC website (www.sec.gov).
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