Bunker Hill Mining Preserves Cash by Issuing Shares for Interest Payments
Vancouver, Tuesday, 30 December 2025.
Bunker Hill prioritizes liquidity for its mine restart by issuing over 1.5 million shares to settle interest debts, a strategic move to preserve capital rather than depleting cash reserves.
Structuring Debt Settlement Through Equity
The newly announced equity issuance relies on a specific pricing mechanism derived from recent market activity to satisfy obligations due on December 31, 2025 [1]. The Interest Shares are valued at US$0.17, or approximately C$0.23 per share [1]. This price point was calculated based on 90% of the volume-weighted average trading price (VWAP) on the TSX Venture Exchange for the 10-day period ending December 26, 2025 [1]. By pegging the issuance to recent trading averages, the company aligns the debt settlement with current market valuations while ensuring that cash resources remain available for operational needs [1].
Allocation of Shares and Debenture Details
The total issuance of 1,578,430 Interest Shares is divided between two distinct creditor groups to cover accrued interest payments [1]. Holders of Series 1 debentures will receive 450,980 shares to satisfy US$76,666.67 in interest, while Series 2 debenture holders are allocated 1,127,450 shares to cover US$191,666.67 [1]. A significant portion of this allocation is directed toward major stakeholders, with 1,503,266 Interest Shares specifically issued to Sprott Private Resource Streaming and Royalty Corp [1]. These financial instruments have long-term horizons; the Series 1 Debentures are set to mature on March 31, 2028, and the Series 2 Debentures will follow on March 31, 2029 [1].
Market Reaction and Financial Context
Investors reacted to the company’s financial positioning on the heels of the announcement. On December 29, 2025, shares of Bunker Hill Mining Corp. closed at C$0.24, reflecting a daily decline of 4.00% on a trading volume of 1,599,370 shares [2]. Despite short-term volatility, the stock has demonstrated robust performance over the past year, recording a year-to-date gain of 54.84% [2]. As the company moves forward with the restart of its lead-silver-zinc mine in Idaho’s Coeur d’Alene district, these financial maneuvers are essential for maintaining the balance sheet flexibility required for complex resource development [1][2].