Bunker Hill Mining (BNKR) Registration Filing summary

Use of proceeds and capital allocation

• Proceeds from the brokered and non-brokered private placements, totaling approximately $26.7 million, are allocated to support construction, start-up, and ramp-up of the mine, as well as general working capital.

• The $10 million standby prepayment facility from Teck is available for operating and capital costs, working capital, and interest payments, with a revolving structure and interest rates of 13.5%–15% per annum.

• Additional capital is raised through convertible debentures, royalty agreements, and a silver loan, with proceeds directed to mine development, debt repayment, and working capital.

Offering details and pricing

• The brokered private placement offered up to 56,921,096 units at C$0.15 per unit, each unit consisting of one common share and one-half warrant, with each whole warrant exercisable at C$0.25 for three years.

• The non-brokered private placement with Teck matched $2 for every $1 raised in the brokered offering, resulting in Teck acquiring 195,294,655 units.

• The total offering included 252,215,751 units, with the company’s authorized share capital increased to 2,510,000,000 shares.

• Warrants and convertible debentures issued in connection with the offering and recapitalization transactions are subject to customary hold periods and transfer restrictions.

Underwriters and syndicate

• The brokered offering was led by BMO Nesbitt Burns Inc., CIBC World Markets Inc., and Red Cloud Securities Inc., with National Bank Financial Inc. as part of the syndicate.

• The agents received a cash commission of 6% on non-President’s List orders and 3% on President’s List orders, with a maximum of 20% of the offering allocated to the President’s List.

• The agents were granted an option to purchase up to an additional 9,312,928 units at the offering price.