05:33:55 EDT Sat 19 Sep 2020
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Bunker Hill Mining Corp (2)
Symbol BNKR
Shares Issued 4,151,396
Close 2020-02-26 C$ 0.58
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Bunker Hill closes first tranche of placement

2020-02-26 17:08 ET - News Release

Mr. John Ryan reports


Bunker Hill Mining Corp. has closed the first tranche of the non-brokered private placement of common shares of the company at 56 cents per common share for gross proceeds of up to $4-million, subject to the company's overallotment option, that was previously announced in the company's Jan. 31, 2020, news release.

The first tranche consisted of the sale of 3,687,501 common shares for gross proceeds of $2,065,000. Under the first tranche 696,428 common shares were issued in satisfaction of indebtedness owed to a creditor of the company in respect of a loan made previously to the company.

The company expects to close subsequent tranches of the offering in the coming weeks.

The net proceeds from the offering shall be primarily used for lease and other payments required to keep the company's option interest in Bunker Hill mine in good standing, for further development of the Bunker Hill mine, and for general corporate and working capital purposes.

The securities issued in connection with the first tranche will be subject to a customary four-month-and-a-day hold period in accordance with applicable Canadian securities laws and to a concurrent six-month hold period in accordance with applicable U.S. securities laws.

Related party transaction

In connection with the first tranche, the company as compensation for his services in relation to the first tranche, has issued 239,284 finder's warrants to Sebastian Marr, who, by virtue of holding over 10 per cent of the issued and outstanding common shares prior to the closing of the first tranche, is an insider of the company, as such term is defined in Canadian securities legislation. Each finder's warrant can be exercised into a common share at 70 cents per common share for 24 months following the issuance of finder's warrants. The issuance of finder's warrants to Mr. Marr constitutes a "related party transaction" as such term is defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). The company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under MI 61-101 on the basis that the value of the finder's warrants issued to Mr. Marr in connection with the closing of the first tranche does not exceed 25 per cent of the fair market value of the company's market capitalization.

About Bunker Hill Mining Corp.

Bunker Hill Mining has the exclusive option to acquire 100 per cent of the marketable assets of the Bunker Hill mine.

We seek Safe Harbor.

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