Bunker Hill Mining has agreed to acquire Silver47 Exploration in an all-stock transaction valuing Silver47 at approximately $163 million on a fully diluted, in-the-money basis, creating a larger U.S.-focused silver and critical minerals company with a pro forma basic market capitalization of approximately $326 million.
Following the transaction, the combined company plans to change its name to Bunker Hill Silver Corp. and remain listed on the Toronto Stock Exchange.
Silver47 shareholders will receive 0.1724 Bunker Hill shares for each Silver47 share.
The exchange ratio implies consideration of approximately $0.67, or C$0.93, per Silver47 share based on Bunker Hill’s August 20 closing price.
That represents an approximately 38% premium to Silver47’s August 20 closing price and roughly a 30% premium to its 20-day volume-weighted average price.
Existing Bunker Hill shareholders are expected to own approximately 57% of the combined company, with Silver47 shareholders owning approximately 43%.
The combination brings together the operating Bunker Hill Mine in Idaho’s Silver Valley with Silver47’s exploration and development assets across Alaska, Nevada and New Mexico.
Bunker Hill expects its mine to serve as the operating and cash-flow engine for development across the broader portfolio as it ramps toward commercial production.
The Bunker Hill Mine has already achieved first production and is targeting commercial production in the fourth quarter of 2026.
Production is projected to increase from more than 980,000 silver-equivalent ounces in 2026 to more than 2.5 million silver-equivalent ounces in 2027, based on analyst consensus projections.
A potential Bunker Hill 2.0 expansion would increase mill throughput from 1,800 tonnes per day to 2,500 tonnes per day and could ultimately drive annual production toward more than 5 million silver-equivalent ounces.
The combined portfolio includes four U.S. silver projects with an aggregate mineral resource inventory of approximately 80 million silver-equivalent ounces measured and indicated and 308 million silver-equivalent ounces inferred.
Silver47’s portfolio includes the Hughes project in Nevada, Red Mountain in Alaska and Mogollon in New Mexico.
Red Mountain contains an inferred mineral resource of approximately 168.6 million silver-equivalent ounces, while Hughes and Mogollon provide additional high-grade silver and gold exposure.
Bunker Hill has also arranged additional liquidity around the transaction.
The company entered into a $10 million concentrate prepayment facility with Ocean Partners and drew $1 million under its existing standby facility with Teck Resources.
Silver47 has agreed to use commercially reasonable efforts to make available an unsecured debt facility of up to $5 million to Bunker Hill, subject to definitive documentation and other conditions.
Upon closing, Richard Williams will serve as Executive Chairman, Sam Ash as CEO, Galen McNamara as President and Chief Investment Officer and Bradley Barnett as CFO.
The company’s operational headquarters will remain at the Bunker Hill Mine in Idaho’s Silver Valley.
The transaction requires shareholder approvals from both companies, stock exchange approvals and approval from the Supreme Court of British Columbia.
The parties expect to complete the transaction shortly after shareholder meetings planned for November 2026.
More than 51% of Bunker Hill’s outstanding shares are already subject to voting support agreements, including shares held by Sprott Private Resource Streaming & Royalty and Teck.
KEY QUOTES:
“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 U.S.-based project portfolio.”
Richard Williams, Executive Chairman Of Bunker Hill Mining
“As the Bunker Hill Mine targets commercial production, its cash flow will provide the organic power to unlock significant value across the four U.S. sites, and secure the valuation multiples that come with scale, reliable production, and a safe and mining friendly jurisdiction.”
Gary Thompson, Executive Chairman Of Silver47 Exploration
“We have been actively looking to partner with the right U.S.-focused silver and critical metals company to accelerate the pace and depth of U.S.-based growth. I know that the Bunker Hill-Silver47 combination achieves this.”
Sam Ash, President And CEO Of Bunker Hill Mining
“Combining our American silver assets with a producing mine and a supportive policy backdrop is how a U.S. champion gets built, and we look forward to building it together.”
Galen McNamara, CEO And Director Of Silver47 Exploration
