Bunker Hill Announces Closing of MINE Purchase and $8 Million Royalty Convertible Debenture
BUNKER HILL ANNOUNCES CLOSING OF MINE PURCHASE AND
$8 MILLION ROYALTY CONVERTIBLE DEBENTURE
TORONTO, January 10, 2022 – Bunker Hill Mining Corp. (the “Company”) (CSE: BNKR, OTCQB: BHLL) is pleased to
announce the closing of the previously announced purchase of the Bunker Hill Mine and $8 million Royalty
Convertible Debenture with Sprott Private Resource Streaming & Royalty Corp (“SRSR” or “Sprott”).
Sam Ash, CEO stated “Ownership of the Bunker Hill Mine is an immense source of pride for our stakeholders and
a major milestone on our journey towards its rapid restart. I would like to thank our funding partners at Sprott
for working diligently with us over the last couple of weeks to close this first $8 million tranche of the $50 million
financing package. We look forward to closing the $5 million Convertible Debenture over the coming days and to
an exciting 2022 full of value-creating catalysts for our investors.”
Following the approval of the transaction by Placer Mining Corp. shareholders and satisfaction of other closing
conditions, the purchase of the mine closed on Friday, January 7 th. Concurrently, definitive documentation and
all closing conditions were met for the $8 million Royalty Convertible Debenture. As announced in the company’s
news release on December 20, 2021, the Royalty Convertible Debenture f unds the purchase of the Bunker Hill
Mine, a $2 million payment to the EPA, and near-term working capital requirements until closing of the $5 million
Convertible Debenture.
The Royalty Convertible Debenture is currently secured by a share pledge of the Company’s operating subsidiary,
while a full security package is put in place that will also enable funding of the $5 million Convertible Debenture,
as announced on December 20, 2021. Definitive documentation for the Convertible Debenture is being advanced,
concurrent with the full security package.
ABOUT BUNKER HILL MINING CORP.
Under new Idaho -based leadership the 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 precious-metal assets with a focus
on silver. Information about the Company is available on its website, www.bunke rhillmining.com, or within the
SEDAR and EDGAR databases.
For additional information contact:
David Wiens, CFA
CFO & Corporate Secretary
+1 208 370 3665
Cautionary Statements
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 of 1933, as
amended, and Section 21E of the 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. 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”, or “plan”. Since forward -looking statements are based on assumptions and
address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although
these statements are based on information currently available to the Company, the Company provides no
assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved
with forward-looking information could cause actual events, results, performance, prospects and opportunities to
differ materially from those expressed or implied by such forward-looking information.
Forward looking information in this news release includes, but is not limited to, the Company’s intentions
regarding: its objectives, goals or future plans and statements; closing the financing package as described herein
with SRSR; and the financing package with SRSR being sufficient for the purposes described herein. Factors that
could cause actual results to differ materially from such forward- looking information include, but are not limited
to: the ability to predict and counteract the effects of COVID-19 on the business of the Company, including but not
limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and
international travel and supply chains; failure to identify mineral resources; failure to convert estimated mineral
resources to reserves; the inabi lity to complete a feasibility study which recommends a production decision; the
preliminary nature of metallurgical test results; the Company’s ability 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 w ith no guarantee that production will begin as anticipated or at all or that
anticipated production costs will be achieved; 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 financi ng; inflation; changes in exchange rates; fluctuations in commodity prices; delays in the
development of projects; capital, operating and reclamation costs varying significantly from estimates and the
other risks involved in the mineral exploration and development industry; and those risks set out in the Company’s
public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in
preparing the forward- looking information in this news release are reasonable, undue reliance should not be
placed on such 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. 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.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred
Resources
This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada,
which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve
estimates included in this press release have been disclosed in accordance with NI 43 -101 and the Canadian
Institute of Mining, Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral Reserves.
NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public
disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian disclosure
standards, including NI 43 -101, differ significantly from the requirements of the United States Securities and
Exchange Commission (“SEC”), and resource and reserve information contained in this press release may not be
comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality
of the foregoing, the term “resource” does not equate to the term “reserves”. Under U.S. standards, mineralization
may not be classif ied as a “reserve” unless the determination has been made that the mineralization could be
economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure
standards normally do not permit the inclusion of information concerning “measured mineral resources”,
“indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization
in mineral deposits that do not constitute “reserves” by U.S. standards in documents fi led with the SEC. Investors
are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into
reserves. U.S. investors should also understand that “inferred mineral resources” have a great amount of
uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be
assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Investors
are cautioned not to assume that all or any part of an “inferred mineral resource” exists or is economically or
legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian
regulations; however, the SEC normally only permits issuers to report mi neralization that does not constitute
“reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements
of NI 43-101 for disclosure of “reserves” are also not the same as those of the SEC, and reserves disclosed by the
Company in accordance with NI 43 -101 may not qualify as “reserves” under SEC standards. Accordingly,
information concerning mineral deposits contained in our website may not be comparable with information made
public by companies that report in accordance with U.S. standards.