Bunker Hill Mining has reached a definitive agreement to acquire all issued and outstanding common shares of Silver47 Exploration, structured as a plan of arrangement.
The move aims to create a combined company focused on US-based, ‘Made in America’ silver and critical minerals production.
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Following the completion of the transaction, the new company intends to change its name to Bunker Hill Silver and will continue trading on the Toronto Stock Exchange.
The merger will bring together Bunker Hill’s producing mine in Idaho’s Silver Valley with Silver47’s exploration and development projects in Alaska, Nevada and New Mexico.
Bunker Hill is currently in the process of ramping up to commercial production, with the mine set to provide operating cash flow to finance further development and exploration.
The new organisation will pursue exploration and development across a portfolio of projects including Bunker Hill 2.0, Hughes, Red Mountain and Mogollon, with funding drawn from existing cash reserves and anticipated operating cash flow.
The transaction terms will see Silver47 shareholders receive 0.1724 of a Bunker Hill share for each Silver47 share held.
Upon closing, Bunker Hill shareholders are expected to hold approximately 57% of the combined company, while Silver47 shareholders will own around 43% on a basic basis.
To support its operations and growth plans, Bunker Hill has arranged a $10m (C$13.84m) concentrate prepayment facility with Ocean Partners UK and has drawn $1m from its standby facility with Teck Resources.
According to the companies, the merged group will have a pro forma basic market capitalisation of $326m and control four US silver projects with a measured and indicated resource of 80 million ounces (moz) of silver equivalent and 308moz of silver equivalent inferred.
Production at the Bunker Hill Mine is expected to increase from more than 980,000oz of silver equivalent in 2026 to above 2.5moz of silver equivalent in 2027, with a targeted annual output of more than 5moz of silver equivalent after expansion.
Upon closing, the combined company’s headquarters will be located at the Bunker Hill Mine site in Idaho’s Silver Valley.
Bunker Hill executive chairman Richard Williams said: “As Bunker Hill advances towards commercial production targeted in the fourth quarter of 2026, we are very excited to partner with Silver47 to add depth to our leadership team, strengthen the balance sheet and add silver and critical metals potential to an exclusively US-based project portfolio.”
Bunker Hill recently completed the first production stope blast at its fully owned mine in Idaho.
