06:53 AM EDT, 06/10/2024 (MT Newswires) -- Bunker Hill Mining ( BHLL ) over the weekend said it signed a non-binding term sheet with Monetary Metals & Co. to provide a silver loan of up to 1.2 million ounces to support the restart and development of the Bunker Hill Mine.

The loan has a three-year term, is secured against Bunker Hill's assets and is repayable in silver ounces. It will bear 15% interest per annum, payable on the last day of each quarterly interest period.

The proceeds from the silver loan will be used to replace all or part of the existing, undrawn Sprott facility at a lower cost of capital.

Bunker Hill will issue to Monetary Metals bonus share purchase warrants equal to 2.5% of the product of the fully diluted number of shares on the funding date, multiplied by the dollar amount of the loan, divided by the sum of the market capitalization based on the five-day volume-weighted average price of Bunker Hill common stock, the dollar amount of the existing financing structure with Sprott Streaming and the dollar amount of the loan.

Each warrant will entitle the holder to acquire one Bunker Hill common share at an exercise price that is set at the market price.

The financing is subject to approval by the TSX Venture Exchange, among other conditions.