TSX-V-listed Bunker Hill Mining on Thursday announced a capital restructuring, led by Teck Resources, to secure funding for the restart of the Bunker Hill mine in Idaho’s Silver Valley. 

The transaction, involving Teck, Sprott Streaming and Royalty Company and Monetary Metals, aims to bring the project into commissioning by the second half of 2025 and full production in the first half of 2026.

The restructuring includes up to $60-million (C$86.2-million) in equity financings, converting certain outstanding debt into equity, and modifying existing royalty and stream financing agreements. Teck’s contribution consists of a $40-million (C$57.5-million) non-brokered private placement, with additional funds to be raised through a brokered private placement led by BMO Capital Markets, CIBC Capital Markets, and Red Cloud Securities.

“This transformational deal not only enables the project restart but also strengthens our balance sheet for the long-term benefit of all Bunker Hill stakeholders,” said Bunker Hill president and CEO Sam Ash. 

“Teck’s investment helps to further strengthen and de-risk American metal supply chains while creating new mining jobs in Idaho’s Silver Valley at a critical time.”

The financing is expected to provide sufficient working capital to complete the construction of the mine, which is currently 65% finished. The restructuring also reduces financing costs, increasing life-of-mine free cash flow while improving the debt-to-equity ratio.

To further de-risk the project, up to $10-million in a standby facility has been secured to ensure operational resilience in the first three years of production. Additionally, Teck’s investment solidifies a life-of-mine supply agreement for zinc and lead/silver concentrate, which will be processed at Teck’s Trail smelter in British Columbia.

The restart budget also includes funding for brownfield exploration targeting high-grade silver, resource expansion, and technical studies for the planned Bunker Hill 2.0 expansion project.