Bunker Hill Mining to acquire Silver47 in all-share merger deal

Bunker Hill Mining Corp. (OTCQB: BHLL) and Silver47 Exploration Corp. (OTCQX: AAGAF) have signed a definitive arrangement agreement under which Bunker Hill will acquire all outstanding common shares of Silver47 in an all-share transaction, according to a press release from the companies.

Under the terms of the deal, Silver47 shareholders will receive 0.1724 Bunker Hill shares for each Silver47 share held at closing. The exchange ratio implies consideration of approximately US$0.67 (C$0.93) per Silver47 share, based on Bunker Hill's closing price on the TSX on August 20, 2026. That represents a premium of approximately 38% to Silver47's last closing price on the TSX Venture Exchange and a 30% premium to its 20-day volume-weighted average price.

Upon completion, existing Bunker Hill shareholders are expected to hold approximately 57% of the combined company, with Silver47 shareholders holding the remaining 43%. The implied aggregate equity value for Silver47 is approximately US$163 million (C$225 million) on a fully diluted, in-the-money basis. The combined company would have a pro forma basic market capitalization of approximately US$326 million and intends to seek a name change to Bunker Hill Silver Corp., remaining listed on the TSX.

The transaction would combine the Bunker Hill Mine in Idaho's Silver Valley, which is ramping toward commercial production expected in the fourth quarter of 2026, with Silver47's silver exploration assets in Alaska, Nevada, and New Mexico. The combined portfolio carries an aggregate mineral resource inventory of 80 million ounces AgEq measured and indicated, and 308 million ounces AgEq inferred.

Concurrent with the announcement, Bunker Hill entered into a US$10 million concentrate prepayment facility with Ocean Partners UK Ltd. and drew US$1 million under an existing standby facility with Teck Resources Limited (TSX: TECK).

The transaction requires approval from at least two-thirds of Silver47 shareholders and a simple majority of Bunker Hill shareholders, along with court and regulatory approvals. Shareholder meetings are expected no later than November 2026. Termination fees of approximately US$6.6 million and US$5.7 million apply to Bunker Hill and Silver47, respectively, under certain circumstances.

Both boards have unanimously recommended the transaction to their respective shareholders.

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