Search Blog
Categories
October 2018
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031  

Tags

Valuestone Global Resources Fund I LP Invests in Bunker Hill Mining Corp. and Files Related Early Warning Report

newsfilecorp

Vancouver, British Columbia–(Newsfile Corp. – October 4, 2018) – Valuestone Global Resources Fund I LP (“Valuestone“), announced that on August 9, 2018, a wholly owned subsidiary of Valuestone acquired from Bunker Hill Mining Corp. (“Bunker Hill” or the “Company”), through a private placement, ownership of 1,604,076 units (the “Units“). The Units are comprised of 1,604,076 common shares and 1,604,076 warrants. Each warrant entitles the holder to purchase one additional share at a price of C$0.45 per share within 3 years from closing.

Bunker Hill Mining Corp. is a CSE listed company (CSE: BNKR) with an option to purchase 100% of the Bunker Hill Mine. The Bunker Hill Mine was the largest producing mine in the Coeur D’Alene zinc, lead and silver mining district in northern Idaho.

Valuestone is an exempted limited partnership registered in the Cayman Islands. The Units were purchased by Gemstone 102 Ltd. (“Gemstone“), a special purpose vehicle incorporated under the laws of the British Virgin Islands that is a wholly-owned subsidiary of Valuestone. Valuestone is a private fund engaged in the business of investment in securities for its own account.

Prior to the issuance of the Units, Gemstone held 4,000,000 common shares of Bunker Hill and 2,000,000 warrants (“Prior Warrants”) exercisable at a price of C$2.00 per share. Immediately prior to closing, the Prior Warrants were early terminated by mutual agreement of the Company and Gemstone.

Immediately after the private placement, Valuestone, through Gemstone, held 5,604,076 shares, representing 16.2% of the outstanding shares of Bunker Hill’s Common Stock, and 1,604,076 warrants, representing 21.67% of the outstanding warrants of Bunker Hill and 19.9% of the outstanding shares on a partially diluted basis.

The consideration paid by Gemstone and received by Bunker Hill was C$721,834 in cash for the 1,604,076 Units based on a purchase price of C$0.45 per Unit.

Gemstone and Bunker Hill entered into an investor rights agreement on December 04, 2017, that provided Gemstone with certain rights including rights to participate in future financings on a pro-rata basis, rights to nominate one director, registration rights and information rights. Such rights terminate if Gemstone’s percentage in Bunker Hill at any time following the date that is one year from December 5, 2017 falls below 2% for a continuous period of at least 30 days. Under the investor rights agreement, Valuestone, through Gemstone, has the right to designate one individual to serve as director on Bunker Hill’s board of directors.

Valuestone acquired the shares and warrants for investment purposes. In pursuing such purposes, Valuestone takes a long-term view of its investment. It reserves the right to formulate other plans or make other proposals, and take such actions with respect to its investment in Bunker Hill. Depending on market conditions and other factors, Valuestone may acquire additional shares of Bunker Hill as Valuestone may deem appropriate, whether in open market purchases, privately negotiated transactions or otherwise. Valuestone may dispose of some or all of such shares or warrants. Valuestone may also reconsider and change its plans or proposals relating to the foregoing.

For the private placement, Gemstone relied on the exemption under Section 2.10 (Minimum Amount Investment) of National Instrument 45-106 — Prospectus Exemptions. Gemstone is not an individual, purchased as principal, the securities had an acquisition cost of not less than $150,000 paid in cash at the time of the distribution and the distribution is of a security of a single issuer.

This news release is issued pursuant to National Instrument 62-103 — The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which also require a report to be filed with regulatory authorities in each of the jurisdictions containing additional information with respect to the foregoing matters (the “Early Warning Report“). A copy of the Early Warning Report will appear with Bunker Hill’s documents on the SEDAR website at www.sedar.com. Gemstone will send a copy of the Early Warning Report promptly to any persons requesting it by contacting Mr. Charlie Liu at Valuestone at charlieliu@valuestone.net.