Bunker Hill Mining (TSX: BNKR; OTCQB: BHLL) said it will acquire Silver47 Exploration (TSX-V: AGA; OTCQX: AAGA) in an all-stock transaction valued at approximately US$163 million, creating a U.S.-focused silver and critical minerals company with assets across Idaho, Alaska, Nevada and New Mexico.
Under the deal announced Friday, Silver47 shareholders will receive 0.1724 Bunker Hill shares for each share held. The exchange ratio implies US$0.67 per Silver47 share, a 38% premium to Thursday’s closing price and a roughly 30% premium to the 20-day volume-weighted average. After closing, Bunker Hill shareholders are expected to own approximately 57% of the combined company, with Silver47 investors holding about 43%. The companies estimate a pro forma market capitalization of around $326 million. The merged entity will be renamed Bunker Hill Silver.
The transaction pairs Bunker Hill’s namesake mine in Idaho’s Silver Valley with Silver47’s exploration and development portfolio. The Bunker Hill mine achieved first production in June and is ramping toward 1,800 tonnes per day of throughput, with a potential expansion to 2,500 tonnes per day under evaluation. The mine has produced 165 million ounces of silver over its history and continues to explore targets including Cate-8, near-mine opportunities, the Ranger Page area and deeper mineralization.
Silver47 brings three wholly owned U.S. projects with NI 43-101 resources: Red Mountain in Alaska, with about 169 million silver-equivalent ounces of inferred resources; Hughes in Nevada, located in the Tonopah Mining District; and Mogollon in New Mexico, a historic silver district with roughly 32 million silver-equivalent ounces of inferred resources. Drilling is underway at Red Mountain and Hughes.
Management estimates the combined company will hold about 390 million silver-equivalent ounces of resources, including more than 80 million ounces in measured and indicated categories and more than 305 million ounces in the inferred category. Based on analyst consensus projections cited by management, production is expected to exceed 2.5 million silver-equivalent ounces in 2027 and could reach sustained output above 6 million ounces annually if Red Mountain is developed. Those projections exclude potential exploration upside at Mogollon, Hughes or Bunker Hill.
Bunker Hill also secured about $11 million in new financing, including a $10 million concentrate prepayment facility with Ocean Partners UK and a $1 million draw under a standby facility with Teck Resources. The combined company is expected to have roughly $42 million in cash and $14 million in undrawn credit facilities, for pro forma liquidity above $55 million. Chief executive Sam Ash said the funds will support mine ramp-up, exploration and working capital.
Bunker Hill executive chairman Richard Williams described the transaction as a “Made in America” deal at a time when domestic mining supply chains are drawing greater attention. Silver47 executive chairman Gary Thompson said the merger gives his company’s shareholders exposure to an operating mine and broader access to capital.
Richard Williams is expected to remain executive chairman, and Sam Ash will continue as chief executive. Silver47’s Galen McNamara will become president and chief investment officer, and Gary Thompson will join the board. Both boards have approved the deal, which remains subject to shareholder, court, creditor, regulatory and stock exchange approvals. The companies expect to close in the fourth quarter, with the combined company continuing to trade in Toronto and planning a NYSE American listing.
