Bunker Hill-Silver47 Merger Values Silver at $163M

Bunker Hill Mining Corp. agreed to buy Silver47 Exploration Corp. in an all-stock deal that values the exploration company at about US$163 million on a fully diluted basis. The transaction, announced Thursday, joins Bunker Hill's operating silver-lead-zinc mine in Idaho's Silver Valley with Silver47's exploration portfolio across Alaska and Nevada, plus a New Mexico asset.

Silver47 shareholders will receive 0.1724 Bunker Hill shares for each Silver47 share. The exchange ratio implies a price of roughly US$0.67 (C$0.93) per Silver47 share, a 38% premium to its last close on the TSX Venture Exchange and a 30% premium to its 20-day volume-weighted average price.

Existing Bunker Hill shareholders will own about 57% of the combined company, Silver47 shareholders the rest. The new entity plans to rename itself Bunker Hill Silver Corp. and stay listed on the Toronto Stock Exchange.

Bunker Hill also lined up additional funding. It secured a US$10 million concentrate prepayment facility from Ocean Partners UK Ltd., a current shareholder, and drew US$1 million under an existing standby facility with Teck Resources Ltd.. Teck, which holds a 69 Alpha Score, is a top shareholder.

Richard Williams, Bunker Hill's executive chairman, called the combination a "Made in America" transaction. He said it adds depth to the leadership team, strengthens the balance sheet, and expands the project pipeline at a time when domestic mining is a policy priority.

The Bunker Hill Mine in Idaho started production this year and is ramping toward commercial output, targeted for the fourth quarter of 2026. The mine operated for nearly a century before closing in 1981. It produced 42.8 million tons of ore at average grades of 8.4% lead and 4.5% zinc, with silver at 3.5 ounces per ton. Current plans call for throughput of 1,800 tons per day, with a potential expansion to 2,500 tons daily under a phase-two plan.

Silver47's flagship is the Red Mountain project in Alaska. It holds an inferred resource of 15.6 million tons grading 336 g/t silver equivalent, containing 168.6 million silver-equivalent ounces. The project sits on a 60-kilometer trend with more than 35 known prospects. The current resource covers only two of them.

The Hughes project in Nevada's Tonopah district has indicated resources of 0.98 million tons at 333 g/t silver equivalent (10.3 million ounces) and inferred resources of 2.44 million tons at 421 g/t (32.9 million ounces). Recent drilling at the Ruby discovery returned 3.0 meters grading 1,450 g/t silver equivalent.

The Mogollon project in southwestern New Mexico, the state's largest historic silver district, hosts an inferred resource of 2.72 million tons at 367 g/t silver equivalent (32.1 million ounces). Only 2.4 kilometers of its roughly 77-kilometer strike length have been systematically drilled.

Sam Ash, Bunker Hill's president and CEO, said the company had been looking for a U.S.-focused silver and critical-metals partner to accelerate growth. He is partnering with Silver47 CEO Galen McNamara and his team of exploration geologists.

McNamara said the timing aligns with policy priorities. The Trump administration has made rebuilding domestic mineral supply chains a national goal, silver was added to the U.S. critical minerals list this year, and federal permitting is moving faster than the industry has seen in decades, he said.

The combined company's board will have six members. Bunker Hill nominates three, including Williams as executive chairman and Ash. Silver47 nominates three, including Thompson and McNamara. The CEO role is not yet filled.

The deal requires approval by two-thirds of Silver47 shareholders and a simple majority of Bunker Hill shareholders. It also needs court and exchange approvals. Shareholder meetings are set for no later than Nov. 15, 2026. Directors and officers, plus certain shareholders representing 6.3% of Silver47 shares and 51.5% of Bunker Hill shares, have signed voting support agreements.

Bunker Hill can walk away under certain conditions by paying Silver47 about US$6.6 million (C$9.1 million). Silver47 can walk by paying Bunker Hill roughly US$5.7 million (C$7.9 million).

The deal values Silver47 at $163 million, a number that will shift with Bunker Hill's stock price between now and closing.