Bunker Hill Mining Secures Potential $150 Million Loan from EXIM Bank for Expansion Project
Bunker Hill Mining Corp. (BNKR BHLL) has received a significant boost for its ambitious expansion plans. The company announced a non-binding Letter of Interest (LOI) from the Export-Import Bank of the United States (EXIM) for a potential debt funding package of up to $150 million. This financial commitment, if finalized, will play a crucial role in expediting the development of Bunker Hill’s 2500tpd Bunker 2.0 expansion project.
The expansion project holds the promise of increasing zinc and silver production significantly while bolstering Bunker Hill’s financial stability. This initiative aligns directly with the company’s goal of becoming a major contributor to the U.S. domestic production of critical metals.
Strategic Partnership with EXIM
Sam Ash, President and CEO of Bunker Hill, expressed enthusiasm about the potential partnership with EXIM. He highlighted the importance of strengthening the U.S. metals supply chain, particularly amidst growing competition from China, and emphasized the project’s potential to create new mining jobs in Idaho’s Shoshone County.
Bunker 2.0 Expansion: A Multi-Stage Approach
The Bunker 2.0 expansion will unfold in multiple phases, commencing with the restart of operations at the 1800tpd facility in the first half of 2025. This restart will be followed by extensive drilling from both underground and surface locations, targeting previously identified exploration zones. Detailed engineering studies will be conducted to support the ramp-up to 2500tpd operations.
A key milestone will be the release of an updated resource and reserve report in Q1 2025, providing a foundation for further exploration activities. The company plans to regularly update the market and its strategic partner on the progress of this concept and its supporting resources.
Expanding Production and Accessing Higher-Grade Ore
The Bunker 2.0 expansion is designed to significantly increase the rate and efficiency of mining and processing operations within the Quill-Newgard ore zones. Importantly, it will enable access to deeper, higher-grade silver galena veins located in the lower levels of the mine, which were inaccessible when the mine closed in 1981.
EXIM’s Role in Supporting Critical Minerals Production
The LOI from EXIM represents a preliminary step in the formal application process. The debt financing is subject to comprehensive due diligence, the negotiation and finalization of terms, and the execution of definitive documentation. Bunker Hill plans to submit a formal application to EXIM by the end of 2024.
Zinc has been designated as a critical mineral in the U.S. since 2022, while silver is currently under review for inclusion in the 2025 list. Both metals are essential components for the energy transition, the ongoing upgrade of critical national infrastructure, and domestic re-industrialization efforts. Zinc’s galvanizing properties are crucial for steel, while silver’s reflective and conductive properties make it valuable in various applications.
About EXIM and its Critical Minerals Initiatives
The Export-Import Bank of the United States (EXIM) is the official export credit agency of the U.S. Its mission is to support American jobs by facilitating the export of U.S. goods and services. EXIM currently has a global lending portfolio of US$1,476.7B across 148 countries. The agency’s commitment to stringent credit standards has resulted in a low default rate of 0.98%.
EXIM’s Make More in America Initiative (MMIA) was launched in response to President Biden’s Executive Order on American Supply Chains. The initiative aims to provide U.S. manufacturers with access to capital to address critical supply chain gaps, particularly in sectors crucial to national security.
The China and Transformational Exports Program (CTEP) was established in 2019. CTEP authorizes EXIM to assist U.S. exporters facing competition from China and ensures that the U.S. maintains leadership in strategically important areas such as renewable energy, storage, and efficiency.
About Bunker Hill Mining Corp.
Based in Idaho, Bunker Hill Mining Corp. is committed to restarting and developing the Bunker Hill Mine in a sustainable manner. The company plans to consolidate and optimize several mining assets to create a high-value portfolio of operations, with an initial focus on North America. More information about Bunker Hill Mining Corp. can be found on its website at www.bunkerhillmining.com.
