Bunker Hill Mining merges with Silver47 to create major US silver producer
TSX-listed Bunker Hill Mining Corporation has entered into a definitive arrangement agreement to acquire all of the issued and outstanding common shares of TSX-V-listed Silver47 Exploration Corporation.
Once merged, the company will change its name to "Bunker Hill Silver Corporation" and remain listed on TSX.
The deal is poised to "create a new US silver and critical minerals champion" with a clear pathway to ramp up production from 980 000 silver-equivalent ounces on an annualised basis once the Bunker Hill mine starts operating commercially in the fourth quarter, to 2.5-million silver-equivalent ounces in 2027 and ultimately to more than five-million silver-equivalent ounces a year.
In terms of the arrangement, Silver47 shareholders will receive 0.1724 shares of common stock in Bunker Hill in exchange for each Silver47 common share held. Upon closing of the deal, Bunker Hill shareholders will own 57% of the enlarged company and Silver47 shareholders the balance.
The exchange ratio implies a consideration of about $0.67, or C$0.93, apiece per Silver47 share, which is a 38% premium to the company's last closing price on the TSX-V on August 20.
The merger will combine the operational Bunker Hill mine located in the Silver Valley region of Idaho with Silver47's silver exploration and development pipeline in Alaska, Nevada and New Mexico.
As Bunker Hill ramps up to commercial production, the mine will act as the operating engine that funds growth and development near the mine and throughout the combined company's expanded US exploration and development portfolio.
Bunker Hill Mining says operating cash flow and a strong pro forma cash balance are expected to provide the necessary capital to complete aggressive exploration and development, and provide working capital for the Bunker Hill mine.
Commenting on the apt timing of the merger, Silver47 CEO Galen McNamara says the US administration has made rebuilding America's mineral supply chains a national priority, silver has been added to the US critical minerals list, and federal permitting is moving with a speed the mining industry has not seen in decades.
"Combining our American silver assets with a producing mine and a supportive policy backdrop is how a US champion gets built, and we look forward to building it together."
The combined company's board of directors and management team will comprise executive chairperson Richard Williams, CFO Bradley Barnett, lead independent director Mark Cruise, directors Sam Ash, Gary Thompson, Pamela Saxton, Kelli Kast and McNamara.
Ash will continue to steer the combined company as CEO, with McNamara also serving as president and chief investment officer of the merged entity.
