Mr. John Ryan reports
BUNKER HILL ANNOUNCES AMENDMENT TO LEASE AND OPTION TO PURCHASE
Bunker Hill Mining Corp. has signed a further amendment to its lease with option to purchase for the Bunker Hill mine. The original lease with option to purchase was announced on Aug. 28, 2017, and became effective on Nov. 1, 2017. Under the new amended agreement the lease period has been extended for an additional period of nine months through Aug. 1, 2020. The company will continue to make a monthly care and maintenance payment of $60,000 (U.S.) to the lessor.
Additionally, the option to purchase has been amended providing for a purchase price of $11-million (U.S.) for 100 per cent of the marketable assets of the Bunker Hill mine consisting of $6.2-million (U.S.) in cash and $4.8-million (U.S.) in shares of the company. The purchase price was established through arm's-length bargaining. The purchase option may be exercised at any time during the remaining period of the lease. An additional term of the amended lease provides for the elimination of all royalty payments that were to be paid to the mine owner.
Upon signing the amended agreement the company paid a one-time, non-refundable cash payment of $300,000 (U.S.) to the mine owner. This payment will be applied to the purchase price upon execution of the purchase option. In the event the company elects not to exercise the purchase option the payment shall be treated as an additional care and maintenance payment. The company is currently considering the financing strategy for the exercise of the option to purchase.
Commented John Ryan, interim chief executive officer: "Over the last few months we have worked carefully with representatives from Placer Mining to chart a path forward to ultimately return the Bunker Hill mine to production. Both parties recognized that signing this very much improved lease and purchase option gave the mine the best chance of once again becoming a productive asset and contributor to the regional economy. We now will turn to the work that has to be done at the mine to initiate a drill and sampling program to verify some of the larger mineral resources which remain in the mine. In the upcoming days and weeks we will provide additional information about our plans and discuss the professional team we have chosen to help us with the confirmation process. We are excited to be at this point and look forward to providing continuing updates to shareholders and the marketplace as to our next steps."
About Bunker Hill Mining Corp.
Bunker Hill Mining has an option to acquire 100 per cent of the Bunker Hill mine.
James Baughman, consulting geologist and a qualified person under Canadian Securities Administrators guidelines, has approved the applicable contents of this news release.
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