Bunker Hill and Silver47 complete merger with 36.3M shares issued
Former Silver47 holders own about 43 per cent of the combined company, which targets commercial production at its Idaho mine by year-end.
Mara Quinlan
Bunker Hill Mining Corp. TSEBNKR OTCMKTSBHLL said on Friday it issued 36,325,517 shares to complete its merger with Silver47 Exploration Corp. CVEAGA OTCMKTSAAGAF FRAQP2. Former Silver47 holders own about 43 per cent of the combined company, which joins an operating Idaho mine with three U.S. exploration and development projects.
Bunker Hill shares closed down 8.0 per cent at C$2.64 in Toronto on Nov. 5, according to Google Finance's 4 p.m. EST quote for TSEBNKR. That trading preceded the merger announcement.
Bunker Hill will continue trading on the Toronto Stock Exchange and intends to change its name to Bunker Hill Silver Corp. The release says it intends to delist Silver47 from the TSX Venture Exchange, Frankfurt and OTCQX.
The combination adds Red Mountain in Alaska, Hughes in Nevada and Mogollon in New Mexico to Bunker Hill's silver-lead-zinc operation in Idaho's Silver Valley. Commercial production remains targeted for the end of 2026.
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"With silver on the U.S. critical minerals list and strong support for domestic mining, we have the assets, the team and the timing to build a leading American silver producer," president and chief investment officer Galen McNamara said in the release.
Under the closing terms, each Silver47 share was exchanged for 0.1724 Bunker Hill shares. Existing Bunker Hill stockholders hold about 57 per cent of the combined company on an undiluted basis.
Shares outstanding totalled 83,667,856 immediately after closing. Silver47 warrants and options remain outstanding, with exchange-adjusted exercise prices and share entitlements covering up to 13,901,231 additional Bunker Hill shares. Those inherited securities alone could add about 16.6 per cent to the closing basic share count.
The share consideration also includes shares issued for restricted share units settled when the arrangement took effect. Sam Ash remains chief executive, while McNamara becomes president and chief investment officer.
The combined company's operational headquarters will be at the Bunker Hill mine in Idaho, and Richard Williams remains executive chairman.
Bunker Hill reported on Oct. 28 that plant throughput averaged above 1,100 tonnes a day, excluding downtime. Lead and zinc recoveries each averaged above 70 per cent as the plant ramp-up continued.
The update said underground mining was meeting tonnage and grade requirements for that stage of ramp-up, with ore coming from the UTZ and Cate-8 areas.
The company said the earlier facility drawdowns would support mechanical optimisation, underground development and working capital through its first concentrate sales cycles.
An expansion study is examining throughput of 2,500 tonnes a day from 2027, including a new portal, plant improvements and tailings-facility work.
Bunker Hill plans to issue updated resources and reserves and its 2027 production guidance by the end of 2026.
