Bunker Hill's Strategic Share Issuance: A Path to Mine Development

Bunker Hill Mining Corp. (TSXV:BNKR | OTCQB:BHLL) has announced updates to its election to issue shares in satisfaction of debenture interest payment obligations and financing cooperation fees. This strategic move aligns with the company's long-term financial strategy and capital structure, aiming to preserve cash for the potential restart and ongoing development of the Bunker Hill Mine.

Bunker Hill plans to issue an aggregate of up to 8,446,194 shares of common stock of the Company ("Common Shares") to satisfy its debenture interest payment obligations and outstanding financing cooperation fees. This issuance includes an aggregate of up to 7,392,859 Common Shares to certain holders of 7.5% convertible debentures (the "Series 1 Convertible Debentures") and 10.5% convertible debentures (the "Series 2 Convertible Debentures" and, together with the Series 1 Convertible Debentures, the "Convertible Debentures") in full satisfaction of the interest payable thereunder as of December 31, 2024 in the aggregate amount of USD$517,500.00 (the "Interest Payment"). Additionally, the company will issue an aggregate of up to 1,053,335 Common Shares to a certain service provider of the Company (the "Service Provider") in full satisfaction of the Q3 Cooperation Fee and Q4 Cooperation Fee.



The issuance of shares at a price of USD$0.07 per share, based on 90% of the 10-day volume weighted average trading price of the Common Shares on the TSX Venture Exchange (the "TSX-V") on the trading days beginning on December 9, 2024 and ending on December 20, 2024 (the "Pricing Period"), suggests that Bunker Hill is issuing shares at a relatively low valuation. This could be seen as an opportunity for existing shareholders to increase their stake at a discounted price. However, the issuance of shares may lead to dilution for existing shareholders, potentially decreasing the value of each share and impacting the company's earnings per share.



Bunker Hill's decision to issue shares instead of paying cash for financing cooperation fees demonstrates the company's strategic approach to preserving cash for the potential restart and ongoing development of the Bunker Hill Mine. This move aligns with the company's long-term financial strategy and capital structure, as it helps maintain financial flexibility and resilience in the long run.

In conclusion, Bunker Hill's strategic share issuance is a calculated move to satisfy its debenture interest payment obligations and financing cooperation fees while preserving cash for mine development. Although this issuance may lead to dilution for existing shareholders, the company's long-term financial strategy and capital structure are well-positioned to benefit from this move. As Bunker Hill continues to develop the Bunker Hill Mine, investors should monitor the company's progress and evaluate the potential impact of share issuance on the company's future prospects.