Budget Estimates And Capital Costs Affirmed For Restart Of Bunker Hill Mine

TORONTO - Bunker Hill Mining Corp. affirmed its total capital cost and budget estimates for the restart of the Bunker Hill Mine and announced an update regarding its project finance initiatives.

Sam Ash, CEO, said, “Based on further optimization of our restart plan, we are pleased to report that the total project budget remains in line with prior estimates. I can also report that our finance plan, centered on the release of $37 million of stream finance from Sprott Private Resource Streaming & Royalty Corp. (“Sprott”), has now been complemented by expressions of interest for an upsized offer of $20 million from potential providers of offtake finance.”

The project team remains on site at short notice awaiting the conclusion of the on-going equity financing activity and the finalization of the offtake finance negotiations. Completion of detailed engineering and the commencement of process plant construction activities are to recommence in Q2 2023.

Working in partnership with its key contractors to adjust certain of its payment schedules the Company has maintained the integrity of its total pre-production budget. This includes all site and corporate costs and other working capital requirements; and aims to ensure first concentrate production in Q2 2024.

Based on recent indications of interest, the Company anticipates the ability to increase the targeted amount of offtake finance to up to $20 million (increased from $15 million previously). This $5 million upsize de-risks the project finance plan by backstopping ongoing equity financing activities.

The Company expects to select its final offtake partner by Q2 2023 as part of securing access to the $37 million of stream finance and thereafter begin the execution of its final project plan.