Bunker Hill Mining Receives Letter of Intent for Up to $150m in Potential Low-Cost Funding From EXIM Bank
KELLOGG, Idaho and VANCOUVER, British Columbia, Oct. 28, 2024 (GLOBE NEWSWIRE) -- Bunker Hill Mining Corp. ("Bunker Hill" or the "Company") (TSXV:BNKR, OTCQX:BHLL) is pleased to announce that it has received a non-binding Letter of Interest ("LOI") from the Export-Import Bank of the United States ("EXIM") for a debt funding package of up to $150M with a loan term of up to 15 years.
The funding will enable the Company to expedite the development of the 2500tpd Bunker 2.0 expansion project (the "Expansion Project") coincident with restarting the mine and strengthening the balance sheet.
"We are thrilled to announce this first step in a potential partnership with EXIM to rapidly expand Bunker Hill's contribution to US domestic production of critical zinc and silver," said President and CEO, Sam Ash. "In the face of competition from China, Bunker Hill is proud to play its part in strengthening the US metals supply chain and creating new US mining jobs within the disadvantaged Shoshone County of Northern Idaho."
Figure 1 - Bunker Hill Staff and Contractors standing inside the 1800tpd processing plant in Kellogg, Idaho
BUNKER HILL 2.0 EXPANSION PROJECT
Coincident with the planned restart of the operations at 1800tpd in the first half of next year, the company intends to conduct extensive drilling from the underground and surface of previously identified exploration targets. This will be complemented by detailed engineering studies designed to support a ramp-up to 2500tpd operations under the previously announced Bunker Hill 2.0 Concept.
The first step on this path will be to issue an updated resource and reserve report in Q1|25, followed by further exploration conducted underground and at the surface. As key milestones are completed, the Company will update the market and its strategic partner on the evolution of this concept and its supporting resources.
Figure 2 - Bunker Hill 2.0 Expansion Concept
The Bunker Hill 2.0 expansion concept is designed to significantly increase the rate and efficiency of the mining and processing of the Quill-Newgard ore zones and subsequently enable access to the deeper, higher-grade silver galena veins being mined from the lower levels of the mine when the mine closed in 1981.
The LOI from EXIM does not represent a financing commitment and is a preliminary step in the formal EXIM application process. The debt financing is subject to the satisfactory completion of due diligence, the negotiation and settlement of final terms, and the negotiation of definitive documentation. There can be no assurance that the debt financing will be completed on the terms described above. The Company will update the market upon reaching a definitive agreement with EXIM for funding support.
The Company expects to submit a formal application to EXIM by the end of 2024.
ZINC, SILVER AND THE US CRITICAL METALS LIST
Zinc has been included in the US Critical Metals list since 2022, while silver is being reviewed now for the 2025 list by the United States Geological Survey ("USGS"). Both are metal inputs to the energy transition, the ongoing upgrade to critical national infrastructure and to domestic re-industrialization. Zinc for its ability to galvanize steel, and silver for its reflective and electrical and thermal conductive properties.
The 2022 list was created based on directives from the Energy Act of 2020, which indicates that at least every three years, the Department of the Interior ...
