Bunker Hill Mining Corp (OTCMKTS:BHLL) Stock Under Pressure After $15 Million Convertible Debt Financing

Bunker Hill Mining Corp (OTCMKTS:BHLL) aims to sustainably restart as well as develop the Bunker Hill Mine. This will be the first step in consolidating portfolio of North American precious-metal assets focusing on silver.

Trading Data

On Friday, BHLL stock moved down 3% to $0.1845 with more than 10.8K shares, compared to its average volume of 59K shares. The stock moved within a range of $0.1776 – 0.1847 after opening trading at $0.1847.

Bunker Hill Announces $15 Million Convertible Debt Financing

Bunker Hill Mining Corp on June 20, 2022, announced the execution as well as closing of a fresh $15 million convertible debenture financing with Sprott Private Resources Streaming & Royalty Corp.

Sam Ash, CEO expressed delight on announcing the new $15 million financing, demonstrating a surge in the project finance package with Sprott to $66 million. Ash added that this ameliorates working capital position, enabling the firm to meet the financial assurance obligations with EPA. Ash further stated that it would fund a few a key workstreams in the coming months including demobilization of the Pend Oreille mill, completion of the underground decline as well as furthering engineering optimization in preparation for mine restart.

The Series 2 Convertible Debentures have interest of annual rate at 10.5%, payable in cash or shares. This will mature on March 31, 2025. Repayments of $2 million will be made at end of every calendar year beginning 30 June 2024, with the balance $9 million due on March 31, 2025.  The Debentures are convertible into shares at a price of CAD 0.29 per share.

The firm may elect to repay Convertible Debenture early in case SRSR elects not to exercise the conversion option at such time. The Debentures will be secured through same package used for securing the $8 million Royalty Convertible Debenture as well as aggregate $6 million Convertible Debentures.

The parties have accepted to a series of changes to the earlier announced project finance package of up to $51 million comprising Royalty Convertible Debenture, Series 1 Convertible Debentures, and the Stream. The Royalty Convertible Debenture will convert 1.85% life of mine royalty on advancement of the stream. The Series 1 Convertible Debentures will be outstanding until March 31, 2025. The minimum amount of metal delivered will surge by 10% if it advances. The net proceeds would be harnessed for satisfying the US Environmental Protection Agency as well as advancement of mine restart activities.

Technical Data

BHLL stock is trading below the 50-Day and 200-Day Moving averages of $0.20 and $0.21 respectively. Moreover, the stock is trading below the 20-Day moving average of $0.20