Silver47 Exploration Corp. press release

Bunker Hill and Silver47 Announce Merger to Create a 'Made in America' U.S. Silver & Critical Minerals Champion

2026-08-21

TSXV - TSX Venture Exchange · Silver · Gold · Zinc · Copper · Lead · Antimony · Gallium · Graphite · Canada · M&A / Asset Transactions

Kellogg, Idaho and Vancouver, British Columbia--(Newsfile Corp. - August 21, 2026) - Bunker Hill Mining Corp. (TSX: BNKR) (OTCQB: BHLL) ("Bunker Hill"), and Silver47 Exploration Corp. (TSXV: AGA) (OTCQX: AAGAF) (FSE: QP2) ("Silver47")are pleased to announce that they have entered into a definitive arrangement agreement dated August 20, 2026 (the "Arrangement Agreement") pursuant to which Bunker Hill has agreed to acquire all of the issued and outstanding common shares of Silver47 by way of a plan of arrangement (the "Transaction"). Concurrent with the Transaction, the combined company (the "Combined Company") will seek a name change to "Bunker Hill Silver Corp." and remain listed on the Toronto Stock Exchange ("TSX").

Under the terms of the Arrangement Agreement, Silver47 shareholders will receive 0.1724 shares of common stock in Bunker Hill (each whole share, a "Bunker Hill Share") in exchange for each Silver47 common share (each, a "Silver47 Share") held immediately prior to the closing of the Transaction (the "Exchange Ratio"). Upon completion of the Transaction, existing Bunker Hill shareholders and Silver47 shareholders are expected to own approximately 57% and 43% of the outstanding Bunker Hill Shares on a basic basis, respectively. The Exchange Ratio implies consideration of approximately US$0.67 (C$0.93) per Silver47 Share based on the last closing price of Bunker Hill on the TSX on August 20, 2026. The consideration represents a premium of approximately 38% to Silver47's last closing price on the TSX Venture Exchange (the "TSXV") on August 20, 2026 and an approximately 30% premium to the 20-day volume weighted average price ("VWAP").

Bunker Hill and Silver47 will host a joint conference call and webcast Friday, August 21, 2026, at 10:00 am Eastern Daylight Time (EDT). Details provided below.

The Transaction will combine the operational Bunker Hill Mine located in the Silver Valley of Idaho, with Silver47's silver-focused U.S. exploration and development pipeline in Alaska, Nevada and New Mexico. As Bunker Hill ramps up to commercial production, the mine will act as the operating engine that funds growth and development near the Bunker Hill Mine, and throughout the Combined Company's expanded U.S. exploration and development portfolio. Operating cash flow and a strong pro forma cash balance is expected to provide the necessary capital to complete aggressive exploration and development, and provide working capital for the Bunker Hill Mine.

Bunker Hill has arranged additional funding from two of its existing partners, entering into a US$10,000,000 concentrate prepayment facility with Ocean Partners UK Ltd. ("Ocean Partners") and drawing US$1,000,000 under its standby facility with Teck Resources Limited ("Teck").

Transaction Highlights & Strategic Rationale

Creating a New U.S. Silver and Critical Minerals Champion: The combination of Bunker Hill's anticipated cash-flow from the Bunker Hill Mine with Silver47's high-quality development pipeline establishes a new 'Made in America' U.S. champion in silver and critical minerals. Bunker Hill is currently listed on the TSX and in the U.S. on the OTCQB and is pursuing a listing on the NYSE American. There is no guarantee the Bunker Hill Shares will be listed on the NYSE American.

Enhanced Scale for a Producer Multiple: With a pro forma basic market capitalization of US$326M, increased trading liquidity, and a strengthened shareholder base, the Combined Company, with commercial production expected to be achieved at the Bunker Hill Mine and a pipeline of additional mineral exploration assets, is expected to realize opportunity to attract broader institutional ownership and index inclusion.

Clear Path to Annual Production of +5 Moz AgEq: Production is expected to ramp from +980 koz AgEq in 2026 to +2,500 koz AgEq in 2027 at the Bunker Hill Mine¹, with the Bunker Hill 2.0 expansion to 2,500 tpd — the largest mill in the Silver Valley — driving annual production toward +5 Moz AgEq per year.

Top-Tier Portfolio of U.S. Silver Projects with District-Scale Upside: The Transaction brings together four U.S. silver projects with an aggregate mineral resource inventory of 80 Moz AgEq measured and indicated and 308 Moz AgEq inferred (see mineral resource table below for resources by project). Three drill programs are currently underway across the portfolio and multiple district-scale systems provide exploration upside with the potential to expand existing mineral resources through future exploration success.

Strengthened Balance Sheet and Access to Capital: An enhanced treasury and improved access to capital position the Combined Company to support the ramp-up at the Bunker Hill Mine, and ongoing exploration and development across the portfolio.

Proven Operators and Proven Explorers:Combining Bunker Hill's mine-building, stakeholder engagement and operating expertise with Silver47's exploration and discovery track record, the Combined Company will benefit from deep capital markets experience and a board with major-producer, M&A, and government relations expertise.

U.S. Government Partner of Choice: The Combined Company is expected to leverage its established relationships with the U.S. EPA, U.S. EXIM Bank, the U.S. Department of Energy, and the U.S. Office of Strategic Capital to support project financing, permitting, and development as the United States continues to prioritize domestic mining and critical minerals supply chains.

(1) Based on analyst consensus projections

Richard Williams, Executive Chairman of Bunker Hill, commented:_"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. This is a 'Made in America' transaction at a time when the U.S. domestic mining industry, its investors and the users of U.S. metals need new, ambitious leaders capable of safely building and operating profitable mines as well as conducting highly prospective exploration and other strategic acquisitions."_

Gary Thompson, Executive Chairman of Silver47, commented_: "The combination of the exploration portfolio and capability of Silver47 with Bunker Hill's mine building and operational track-record creates a strong foundation for this growth focused company. 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."_

Sam Ash, President and CEO of Bunker Hill, commented:_"In addition to unlocking the many upsides to our newly operational Bunker Hill Mine, such as bringing the high-grade Cate-8 discovery into the mine plan, returning the mine to its historic 50/50 silver to base metals mix and potentially expanding our throughput to 2,500 tpd, 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, and I could not be more excited to partner with Galen McNamara and his team of exploration geologists to help build a new US mining champion at a critical time for our country"._

Galen McNamara, CEO & Director of Silver47, commented:"_Very few teams in the U.S. have restarted a mine in a district with as much history and as much scrutiny as the Silver Valley. Sam Ash and the Bunker Hill team have brought the Bunker Hill Mine back into operation — safely, and with the confidence of their regulators, their community, and the State of Idaho. That operating credibility is exactly what a high-quality development portfolio like ours needs behind it. We are also building at the right moment: this Administration has made rebuilding America's mineral supply chains a national priority, silver has been added to the U.S. critical minerals list, and federal permitting is moving with a speed our industry has not seen in decades. 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."_

Board and Management of the Combined Company

Upon closing of the Transaction, the Combined Company's board of directors and management team will be comprised of:

Board of Directors:Richard Williams (Executive Chairman), Mark Cruise (Lead Independent Director), Sam Ash (Director), Gary Thompson (Director), Galen McNamara (Director), Pamela Saxton (Director), and Kelli Kast (Director).

Management:Richard Williams (Executive Chairman), Sam Ash (Chief Executive Officer), Galen McNamara (President & Chief Investment Officer), and Bradley Barnett (Chief Financial Officer).

The operational headquarters will be located in the Silver Valley of Idaho, at the Bunker Hill Mine site.

Benefits to Bunker Hill and Silver47 Shareholders

The Combined Company is expected to benefit from exposure to Bunker Hill's imminent production profile and Silver47's robust portfolio of high-grade U.S. silver and critical minerals exploration assets, providing a combination of cash-flow generation, growth potential, and reduced asset-specific risk through diversification.

The Combined Company offers meaningful share price appreciation potential as it targets commercial production at the Bunker Hill Mine, transitions toward a balanced 50/50 silver and critical metals revenue mix, and re-rates toward the valuation multiples of established silver producers.

The Transaction is expected to increase capital markets scale, enhance trading liquidity, and create a broadened shareholder base, creating the potential for greater institutional ownership, index inclusion, and improved market recognition.

The Combined Company is expected to benefit from exploration and development across the portfolio of highly prospective projects, including Bunker Hill 2.0, Hughes, Red Mountain and Mogollon, to be funded from cash on hand and operating cash flow.

The Transaction's all-share structure aligns long-term shareholder interests, ensuring shared commitment to advancing projects and pursuing value-accretive opportunities.

The Combined Company is expected to benefit from strengthened leadership and expertise.

Combined Mineral Resource Summary

[](https://images.newsfilecorp.com/files/10967/310697_silvertableone.jpg)

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/10967/310697_silvertableone.jpg

Notes to the Bunker Hill Mineral Resources & Reserves:

1. Mineral Resources are stated inclusive of Mineral Reserves 2. Mineral Reserves are estimated using a zinc price of US$1.20/lb, silver price of US$20.00/oz, and lead price of US$1.00/lb 3. Silver equivalents are calculated using a zinc price of US$1.20/lb, silver price of US$20.00/oz, and lead price of US$1.00/lb

Notes to the Silver47 Mineral Resources:

1. Metal equivalents at Red Mountain are calculated using ratios with metal prices of US$2,750/tonne Zn, US$2,100/tonne Pb, US$8,880/tonne Cu, US$1,850/oz Au, and US$23/oz Ag. Metal recoveries are based on metallurgical work returned of 90% Zn, 75% Pb, 70% Cu, 70% Ag, and 80% Au. Silver Equivalent (AgEq g/t) = [Zn (%) x 47.81] + [Pb (%) x 30.43] + [Cu (%) x 119] + [Ag (g/t) x 1] + [Au (g/t) x 91.93]. ZnEq (%) = [Zn (%) x 1] + [Pb (%) x 0.6364] + [Cu (%) x 2.4889] + [Ag (ppm) x 0.0209] + [Au (ppm) x 0.1923] 2. Silver Equivalent at Hughes is calculated using US$20/oz Ag, US$1,800/oz Au, with metallurgical recoveries of Ag - 90% and Au - 95%. AgEq = (Ag grade x Ag recovery)+((Au grade x Au recovery) x (Au price / Ag price)) 3. Silver Equivalent at Mogollon is calculated using US$20/oz Ag, US$1,800/oz Au, with metallurgical recoveries of Ag - 90% and Au - 95%. AgEq = (Ag grade x Ag recovery)+((Au grade x Au recovery) x (Au price / Ag price))

Bunker Hill Mine and Ranger-Page Project Overview

The Bunker Hill Mine is a historic mine operation located in Idaho's Coeur d'Alene Mining District, which was first discovered in 1885 and operated continuously for nearly a century until its closure in 1981. During its 95 year run, the Bunker Hill Mine yielded 42.8 million tons of ore, at average grades of 8.4% Pb, 4.5% Zn, and 3.5 oz/ton Ag. A restart is currently underway with first production now achieved and the mine ramping up to commercial production, which is expected to be achieved in Q4 2026. Ongoing projects to optimize the Bunker Hill Mine include exploration to extend the mine life and increase the silver component of mill feed, and investigation of a significant mill expansion from 1,800 tpd to 2,500 tpd, under the Bunker Hill 2.0 expansion.

Additional exploration and mineral resource upside exists at the Bunker Hill Mine's neighbouring Ranger-Page project. Bunker Hill recently acquired the neighbouring Ranger-Page project which hosts six historical high-grade silver mines. Recent 2024-2025 high-grade drill intercepts at the Ranger-Page Project include 10.2 feet (3 m) of 162 g/t Ag, 19.7% Zn, and 19.4% Pb (drill thickness). Three high-priority targets have been identified at Ranger-Page: the recently discovered vein near the Blackhawk Mine Curlew Vein, down-plunge extensions of the Ranger-Page Mine Tony Vein, and the Government Gulch Fault corridor between the historical mine workings of the Bunker Hill Mine and the Ranger-Page Mine. The Government Gulch target has compelling long-term potential as a large unexplored area along strike of structures controlling mineralization at two of the largest mines in the Silver Valley, which has seen almost no modern exploration due to the historic competing adjacent land holders.

Hughes Project Overview

Silver47's 100%-owned Hughes Project is a district-scale silver project located in central Nevada's prolific Tonopah Mining District along the Walker Lane Trend. The project combines significant exploration upside with near-term production potential through the re-treatment of historic tailings, while active drilling continues to expand the resource base. The Hughes Project hosts indicated in-situ mineral resources of 0.98 million tonnes grading 333 g/t silver equivalent (AgEq), containing 10.3 million silver equivalent ounces; inferred in-situ mineral resources of 2.44 million tonnes grading 421 g/t AgEq, containing 32.9 million silver equivalent ounces; and inferred tailings mineral resources of 1.26 million tonnes grading 68 g/t AgEq, containing 2.74 million silver equivalent ounces, all as reported in an NI 43-101 Technical Report dated March 3, 2025. Recent drilling has confirmed exceptional high-grade mineralization across 6.2 kilometers of strike, within and along extensions of the historic Tonopah silver district, underscoring the project's significant resource expansion potential. Notable results include hole SUM23-59 at the Ruby discovery, which intersected 3.0 meters grading 1,450 g/t silver equivalent (812 g/t silver and 8.4 g/t gold). Strategically positioned near existing infrastructure, the Hughes Project encompasses a largely underexplored land package where modern exploration is unlocking new high-grade discovery opportunities.

Red Mountain Project Overview

Silver47's 100%-owned Red Mountain Project, located approximately 100 km south of Fairbanks, Alaska, is Silver47's Most advanced silver and critical minerals asset. Strategically situated within the prolific Bonnifield Mining District, the project hosts an inferred mineral resource of 15.6 million tonnes grading 336 g/t silver equivalent (AgEq), containing 168.6 million silver equivalent ounces. Recent drilling has confirmed robust high-grade polymetallic mineralization and highlights the project's significant resource expansion potential. Notable results include 22.3 meters grading 601 g/t AgEq (150.6 g/t silver, 0.82 g/t gold, 5.86% zinc, 2.60% lead, and 0.13% copper) from a depth of 18.9 meters within the Dry Creek Deposit. Beyond its current resource, the Red Mountain Project hosts a highly prospective 60-kilometer mineralized trend containing more than 35 known mineralized prospects. The current mineral resource is derived from just two of these prospects (Dry Creek and West Tundra Flats), highlighting the substantial exploration upside across a largely underexplored district where many targets have seen little to no modern exploration.

_*Metal equivalents at Red Mountain are calculated using ratios with metal prices of US$2,750/tonne Zn, US$2,100/tonne Pb, US$8,880/tonne Cu, US$1,850/oz Au, and US$23/oz Ag. Metal recoveries are based on metallurgical work returned of 90% Zn, 75% Pb, 70% Cu, 70% Ag, and 80% Au. Silver Equivalent (AgEq g/t) = [Zn (%) x 47.81] + [Pb (%) x 30.43] + [Cu (%) x 119] + [Ag (g/t) x 1] + [Au (g/t) x 91.93]. ZnEq (%) = [Zn (%) x 1] + [Pb (%) x 0.6364] + [Cu (%) x 2.4889] + [Ag (ppm) x 0.0209] + [Au (ppm) x 0.1923]_

_*Silver Equivalent at Hughes is calculated using US$20/oz Ag, US$1,800/oz Au, with metallurgical recoveries of Ag - 90% and Au - 95%. AgEq = (Ag grade x Ag recovery)+((Au grade x Au recovery) x (Au price / Ag price))._

Mogollon Project Overview

Silver47's 100%-owned Mogollon Project is located in southwestern New Mexico's prolific Mogollon Mining District, the state's largest historic silver-producing district. The project hosts an inferred mineral resource estimate of 2.72 million tonnes grading 367 g/t silver equivalent (AgEq), containing 32.1 million silver equivalent ounces. Recent drilling has confirmed exceptional high-grade mineralization and highlights the project's significant resource expansion potential. Notable results include hole MOG22-05 at the Consolidated target, which intersected 31.0 meters grading 448 g/t silver equivalent (129 g/t silver and 3.88 g/t gold). The 7,730-acre Mogollon Project hosts a district-scale vein field with approximately 77 kilometers of cumulative strike length, of which only 2.4 kilometers have been systematically explored and drilled to date, providing a rare and unique opportunity for new discoveries and resource growth.

_*Silver Equivalent at Mogollon is calculated using US$20/oz Ag, US$1,800/oz Au, with metallurgical recoveries of Ag - 90% and Au - 95%. AgEq = (Ag grade x Ag recovery)+((Au grade x Au recovery) x (Au price / Ag price))._

Transaction Details

Pursuant to the terms and conditions of the Arrangement Agreement, Silver47 shareholders will receive 0.1724 Bunker Hill Shares for each Silver47 Share held immediately prior to closing of the Transaction. Based on the last closing price of the Bunker Hill Shares on the TSX on August 20, 2026, the Exchange Ratio implies an aggregate equity value for Silver47 of approximately US$163,000,000 (C$225,000,000), on a fully diluted, in-the-money basis.

Pursuant to the Plan of Agreement, each Silver47 option (a "Silver47 Option") outstanding immediately prior to the effective time of the Arrangement (the "Effective Time"), whether vested or unvested, shall be exchanged for an option (each a "Replacement Option") to acquire from Bunker Hill, the number of Bunker Hill Shares as is equal to (rounded down to the nearest whole number): (i) the number of Silver47 Shares subject to such Silver47 Option immediately prior to the Effective Time; multiplied by (ii) the Exchange Ratio. The exercise price per Bunker Hill Share subject to a Replacement Option shall be an amount equal to: (i) the exercise price per Silver47 Share subject to each such Silver47 Option immediately before the Effective Time; divided by (ii) the Exchange Ratio, provided that the aggregate exercise price payable on any particular exercise of Replacement Options shall be rounded up to the nearest whole cent. The Replacement Options shall be exercisable until the original expiry date of the Silver47 Option, except that the term of any Replacement Options, including any outstanding Replacement Options held by or on behalf of an individual that will not be continuing as a director, officer, employee or consultant of Bunker Hill or any of its affiliates (including Silver47) following 60 days after the effective date of the Arrangement, shall be the lesser of (A) the current expiry date of the Silver47 Option, and (B) the date that is 120 days following the effective date of the Arrangement. Except as set out above, term to expiry, conditions to and manner of exercise and other terms and conditions of each of the Replacement Options shall be the same as the terms and conditions.