Document and Entity Information
Document and Entity Information | 6 Months Ended |
Dec. 31, 2018shares | |
Details | |
Registrant Name | Bunker Hill Mining Corp. |
Registrant CIK | 1,407,583 |
SEC Form | 10-Q |
Period End date | Dec. 31, 2018 |
Fiscal Year End | --06-30 |
Trading Symbol | BHLL |
Tax Identification Number (TIN) | 320,196,442 |
Number of common stock shares outstanding | 41,513,955 |
Filer Category | Non-accelerated Filer |
Current with reporting | Yes |
Small Business | true |
Emerging Growth Company | false |
Amendment Flag | false |
Document Fiscal Year Focus | 2,019 |
Document Fiscal Period Focus | Q2 |
Bunker Hill Mining Corp. (Forme
Bunker Hill Mining Corp. (Formerly Liberty Silver Corp.) Interim Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 |
Current assets | ||
Cash and cash equivalents | $ 130,048 | $ 502,660 |
Accounts receivable | 87,055 | 229,046 |
Deposit | 0 | 90,248 |
Prepaid expenses | 156,800 | 588,630 |
Total current assets | 373,903 | 1,410,584 |
Property and equipment | ||
Equipment | 48,181 | 97,252 |
Long term deposit | 106,352 | 0 |
Mining interests | 1 | 1 |
Total property and equipment | 154,534 | 97,253 |
Total assets | 528,437 | 1,507,837 |
Current liabilities | ||
Accounts payable (note 3) | 975,401 | 225,184 |
Accrued liabilities (note 6) | 2,110,404 | 504,186 |
Other liability | 69,967 | 57,417 |
Interest payable | 98,630 | 3,288 |
Convertible loan payable (note 4) | 721,287 | 70,820 |
Derivative liability - conversion feature (note 4) | 0 | 180,353 |
Total current liabilities | 3,975,689 | 1,041,248 |
Derivative warrant liability (notes 4 and 5) | 125,506 | 682,903 |
Total liabilities | 4,101,195 | 1,724,151 |
SHAREHOLDERS' DEFICIENCY | ||
Preferred shares, $0.001 par value, 10,000,000 preferred shares authorized; No preferred shares issued and outstanding (note 5) | 0 | 0 |
Common shares, $0.001 par value, 300,000,000 common shares authorized; 41,513,955 and 33,013,715 common shares issued and outstanding, respectively (note 5) | 41,028 | 33,013 |
Additional paid-in-capital (note 5) | 23,926,573 | 23,364,249 |
Deficit accumulated during the exploration stage | (27,540,359) | (23,613,576) |
Total shareholders' deficiency | (3,572,758) | (216,314) |
Total liabilities and shareholders' equity | $ 528,437 | $ 1,507,837 |
Bunker Hill Mining Corp. (For_2
Bunker Hill Mining Corp. (Formerly Liberty Silver Corp.) Interim Condensed Consolidated Balance Sheets (Unaudited) - Parenthetical - $ / shares | Dec. 31, 2018 | Jun. 30, 2018 |
Details | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 |
Common Stock, Shares, Issued | 41,513,955 | 33,013,715 |
Income Statement
Income Statement - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Details | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Operating expenses | ||||
Operation and administration | 218,380 | 845,097 | 876,639 | 1,055,054 |
Legal and accounting | 51,973 | 188,563 | 121,131 | 260,638 |
Lease payments and exploration | 3,003,911 | 2,168,676 | 3,814,176 | 2,174,892 |
Consulting | 118,807 | 265,123 | 192,458 | 385,155 |
Total operating expenses | 3,393,071 | 3,467,459 | 5,004,404 | 3,875,739 |
Loss from operations | (3,393,071) | (3,467,459) | (5,004,404) | (3,875,739) |
Other income or gain (expense or loss) | ||||
Change in derivative liability (notes 4 and 5) | 406,276 | 449,149 | 1,526,213 | 449,149 |
Accretion | (235,255) | 0 | (343,909) | 0 |
Gain (loss) on foreign exchange | (6,903) | 26,401 | 1,589 | 32,394 |
Loss on sale of equipment | (10,930) | 0 | (10,930) | 0 |
Interest expense | (50,410) | 0 | (95,342) | 0 |
Total other income or gain (expense or loss) | 102,778 | 475,550 | 1,077,621 | 481,543 |
Loss before income tax | (3,290,293) | (2,991,909) | (3,926,783) | (3,394,196) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss and comprehensive loss | $ (3,290,293) | $ (2,991,909) | $ (3,926,783) | $ (3,394,196) |
Loss per common share - basic and fully diluted | $ (0.09) | $ (0.11) | $ (0.11) | $ (0.13) |
Weighted average common shares - basic and fully diluted | 37,387,828 | 27,176,344 | 35,684,988 | 26,026,621 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 6 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | ||
Net loss and comprehensive loss | $ (3,926,783) | $ (3,394,196) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock based compensation (note 5) | 43,893 | 103,815 |
Depreciation expense | 7,212 | 1,104 |
Write-down of mining interest | 0 | 300,000 |
Write-down of mining interest | (1,526,213) | (449,149) |
Accretion expense | 343,909 | 0 |
Loss on disposal of equipment | 10,930 | 0 |
Changes in operating assets and liabilities: | ||
Decrease (increase) in accounts receivable | 141,991 | (928) |
(Increase) decrease in deposit | 21,312 | (20,262) |
(Increase) decrease in other assets | 0 | (521,415) |
Decrease in prepaid expenses | 394,414 | 56,585 |
Increase (decrease) in accounts payable | 770,563 | (48,489) |
Increase in accrued liabilities | 1,874,525 | 450,276 |
Increase in other liabilities | 12,550 | 2,449 |
Increase in interest payable | 95,342 | 0 |
Net cash used in operating activities | (1,736,355) | (3,520,210) |
Cash flows from investing activities | ||
Proceeds on disposal of equipment | 10,000 | 0 |
Net cash used in investing activities | 10,000 | 0 |
Cash flows from financing activities | ||
Proceeds from convertible loan payable, net | 474,250 | 0 |
Proceeds from issuance of common stock, net | 879,493 | 7,184,041 |
Net cash from financing activities | 1,353,743 | 7,184,041 |
Decrease in cash and cash equivalents | (372,612) | 3,663,831 |
Cash and cash equivalents, beginning of period | 502,660 | 593,515 |
Cash and cash equivalents, end of period | $ 130,048 | $ 4,257,346 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation and Going Concern | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 1 - Basis of Presentation and Going Concern | Note 1 Basis of Presentation and Going Concern The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, shareholders equity or cash flows. It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The unaudited interim condensed consolidated financial statements should be read in conjunction with the Companys Annual Report on Form 10-K, which contains the annual audited consolidated financial statements and notes thereto, together with the Managements Discussion and Analysis, for the year ended June 30, 2018. The interim results for the period ended December 31, 2018 are not necessarily indicative of the results for the full fiscal year. The interim unaudited condensed consolidated financial statements are presented in USD, which is the functional currency. These unaudited interim condensed consolidated financial statements have been prepared on a going concern basis. The Company has incurred losses since inception resulting in an accumulated deficit of $27,540,359 and further losses are anticipated in the development of its business. The ability of the Company to emerge from the exploration stage is dependent upon, among other things, obtaining additional financing to continue operations, exploration and development of the mineral properties and the discovery of, development, and sale of reserves. These factors, among others, raise substantial doubt about the Companys ability to continue as a going concern. In order to continue to meet its plans and fiscal obligations in the current fiscal year and beyond, the Company must seek additional financing. Its ability to continue as a going concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. The accompanying unaudited interim condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Management is considering various financing alternatives including, but not limited to, raising capital through the capital markets and debt financing. These interim condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. |
Note 1 - Basis of Presentation and Going Concern | These unaudited interim condensed consolidated financial statements have been prepared on a going concern basis. The Company has incurred losses since inception resulting in an accumulated deficit of $27,540,359 and further losses are anticipated in the development of its business. The ability of the Company to emerge from the exploration stage is dependent upon, among other things, obtaining additional financing to continue operations, exploration and development of the mineral properties and the discovery of, development, and sale of reserves. These factors, among others, raise substantial doubt about the Companys ability to continue as a going concern. In order to continue to meet its plans and fiscal obligations in the current fiscal year and beyond, the Company must seek additional financing. Its ability to continue as a going concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. The accompanying unaudited interim condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Note 2 - Nature of Operations
Note 2 - Nature of Operations | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 2 - Nature of Operations | Note 2 Nature of Operations Bunker Hill Mining Corp. (formerly Liberty Silver Corp.) (the Company or Bunker) was incorporated under the laws of the state of Nevada, U.S.A on February 20, 2007 under the name Lincoln Mining Corp. Pursuant to a Certificate of Amendment dated February 11, 2010, the Company changed its name to Liberty Silver Corp., and on September 29, 2017 the Company changed its name to Bunker Hill Mining Corp. As of the date of this Form 10-Q, the Company had two subsidiaries, Bunker Hill Operating LLC, a Colorado corporation that is currently dormant, and American Zinc. Corp., an Idaho corporation created to facilitate the work being conducted at the Bunker Hill Mine in Idaho. The Company was incorporated for the purpose of engaging in mineral exploration activities. It acquired the Bunker Hill Mine and continues to work at developing this project with a view towards putting it into production. |
Note 3 - Mining Interests
Note 3 - Mining Interests | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 3 - Mining Interests | Note 3 - Mining Interests Bunker Hill Mine Complex On November 27, 2016, the Company entered into a non-binding letter of intent with Placer Mining Corp. (Placer Mining) in Idaho During the fiscal year ended June 30, 2017, the Company made payments totaling $300,000 as part of this Letter of Intent. These amounts were initially capitalized and subsequently written off during fiscal 2018 and are included in lease payments and exploration expenses. On August 28, 2017, the Company announced that it signed a definitive agreement (the Agreement) for the lease and option to purchase the Bunker Hill Mine assets (the Bunker Assets). Under the terms of the Agreement, the Company was required to make a $1 million bonus payment to Placer Mining no later than October 31, 2017, which payment was made, along with two additional $500,000 bonus payments in December 2017. The 24-month lease (the Lease) commenced November 1, 2017 and continues until October 31, 2019. The lease period can be extended by a further 12 months at the Companys discretion. During the term of the Lease, the Company must make $100,000 monthly mining lease payments, paid quarterly, and $100,000 monthly operating cost payments. The Company has an option to purchase the Bunker Assets at any time before the end of the Lease and any extension for a purchase price of $25 million with purchase payments to be made over a ten-year period to Placer Mining (the Option). Under terms of the agreement, there is a 3% net smelter return royalty (NSR) on sales during the Lease and a 1.5% NSR on the sales after the purchase option is exercised, which post-acquisition NSR is capped at $60 million. On October 2, 2018, the Company announced that it was in default of its Lease with Option to Purchase Agreement with Placer Mining. The default arose as a result of missed lease and operating cost payments payments, totaling $400,000, which were due at the end of September and on October 1, 2018. As per the Agreement, the Company had 15 days, from the date notice of default was provided (September 28, 2018), to remediate the default by making the outstanding payment. While Management worked with urgency to resolve this matter, Management was ultimately unsuccessful in remedying the default, resulting in the lease being terminated. On November 13, 2018, the Company announced that it was successful in renewing the lease, effectively with the original Agreement intact, except that monthly payments are reduced to $60,000 per month for 12 months, with the accumulated reduction in payments of $140,000 per month (deferred payments) added to the purchase price of the mine should the Company choose to exercise its option. The Company is accruing for the deferred payments and includes them in accounts payable. In addition to the payments to Placer Mining, pursuant to an agreement with the United States Environmental Protection Agency (EPA) whereby for so long as Bunker leases, owns and/or occupies the Bunker Hill Mine, the Company will make payments to the EPA on behalf of the current owner in satisfaction of the EPAs claim for cost recovery. These payments, if all are made, will total $20 million. The agreement calls for payments starting with $1 million 30 days after a fully ratified agreement was signed (which payment was made) followed by $2 million on November 1, 2018 and $3 million on each of the next 5 anniversaries with a final $2 million payment on November 1, 2024. In addition to these payments, the company is to make semi-annual payments of $480,000 on June 1 and December 1 of each year, to cover the EPAs costs of maintaining the water treatment facility. The November 1 and December 1, 2018 payments were not made, and the Company is having discussions with the EPA to amend and defer payments. Trinity Project On August 31, 2017, the Company and Renaissance Exploration Inc. signed a notice of termination and release of exploration Earn-In Agreement. Upon signing this agreement, the Company has terminated the March 29, 2010 Earn-In Agreement and has been released from all past and future obligations. |
Note 4 - Convertible Loan Payab
Note 4 - Convertible Loan Payable | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 4 - Convertible Loan Payable | Note 4 Convertible Loan Payable In August 2018, the amount of the Hummingbird convertible loan payable was increased to $2 million from its original $1.5 million loan, net of $45,824 of debt issue costs, of which $25,750 was incurred in the current period. Under the terms of the Amended and Restated Loan Agreement, Hummingbird may, at any time prior to maturity, convert any or all of the principal amount of the loan and accrued interest thereon, into common shares of Bunker as follows: (i) $1,500,000, being the original principal amount (Principal Amount), the Principal Amount may be converted at a price per share equal to C$0.85; (ii) 2,294,835 common shares may be acquired upon exercise of warrants at a price of CDN$0.85 per warrant for a period of two years from the date of issuance; (iii) $500,000, being the additional principal amount (Additional Amount), the Additional Amount may be converted at a price per share equal to C$0.45; and (iv) 1,167,143 common shares may be acquired upon exercise of warrants at a price of CDN$0.45 per warrant for a period of two years from the date issuance. In the event that Hummingbird would acquire common shares in excess of 9.999% through the conversion of the Principal Amount or Additional Amount, including interest accruing thereon, or on exercise of the warrants as disclosed herein, the Company shall pay to Hummingbird a cash amount equal to the common shares exercised in excess of 9.999%, multiplied by the conversion price. The Company has accounted for the conversion features and warrants in accordance with ASC Topic 815. The conversion features and warrants are considered derivative financial liabilities as they are convertible into common shares at a conversion price denominated in a currency other than the Companys function currency of the US dollar. The estimated fair value of the conversion features and warrants was determined on the date of issuance and marks to market at each financial reporting period. At December 31, 2018, the fair value of the conversion features were estimated using the Binomial model to determine the fair value of conversion features using the following assumptions: Principal Amount June 30, 2018 December 31, 2018 Expected life 345 days 165 days Volatility 100% 100% Risk free interest rate 2.04% 1.99% Dividend yield 0% 0% Share price $0.47 $0.05 Fair value $180,353 $0 Change in derivative liability $180,353 Additional Amount August 9, 2018 December 31, 2018 Expected life 365 days 221 days Volatility 100% 100% Risk free interest rate 2.11% 1.99% Dividend yield 0% 0% Share price $0.47 $0.05 Fair value $6,312 $0 Change in derivative liability $6,312 The fair value of the warrants were estimated using the Binomial model to determine the fair value of the derivative warrant liabilities using the following assumptions: Principal Amount June 30, 2018 December 31, 2018 Expected life 714 days 530 days Volatility 100% 100% Risk free interest rate 2.04% 1.54% Dividend yield 0% 0% Share price $0.47 $0.05 Fair value $326,909 $505 Change in derivative liability $326,404 Additional Amount August 9, 2018 December 31, 2018 Expected life 730 days 588 days Volatility 100% 100% Risk free interest rate 2.11% 1.99% Dividend yield 0% 0% Share price $0.47 $0.05 Fair value $161,381 $2,224 Change in derivative liability $159,157 Accretion and interest expense for the three and six months ended December 31, 2018 were $ 235,255 and $ 343,909 and $ 50,410 and $ 95,342 , respectively ($NIL for prior year comparative periods). |
Note 5 - Capital Stock and Warr
Note 5 - Capital Stock and Warrants | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 5 - Capital Stock and Warrants | Note 5 Capital Stock and Warrants Authorized The total authorized capital is as follows: - 300,000,000 common shares with a par value of $0.001 per common share; and - 10,000,000 preferred shares with a par value of $0.001 per preferred share Issued and outstanding In August 2018, the Company closed a private placement, issuing 1,604,076 Units to Gemstone 102 Ltd. (Gemstone) at a price of C$0.45 per Unit, for gross proceeds of C$721,834 (US$549,333) and incurring financing costs of US$25,750. Each Unit entitles Gemstone to acquire one common share (Unit Share) and one common share purchase warrant (Unit Warrant), with each Unit Warrant entitling Gemstone to acquire one common share of the Company at a price of C$0.45 for a period of three years. Prior to the issuance of the Units, Gemstone held 4,000,000 common shares of the Company (12.12%) and 2,000,000 warrants (Prior Warrants) exercisable at a price of C$2.00 per share (16.21% on a partially diluted basis). Immediately prior to closing, the Prior Warrants were early terminated by mutual agreement of the Company and Gemstone. Upon issuance of the 1,604,076 Units to Gemstone, Gemstone beneficially owns or exercises control or direction over 5,604,076 common shares of the Company representing 13.4% of the issued and outstanding shares. Assuming exercise of the Unit Warrants, Gemstone would hold 7,208,152 of the outstanding common shares of the Company, representing 17.4% of the issued and outstanding common shares of Bunker. Gemstones participation in the Offering constitutes a "related party transaction" under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Given the urgent need to secure financing to meet the new lease obligations, Bunkers Board approved an equity private placement of Units to be sold at C$0.075 per Unit with each Unit consisting of one common share and one common share purchase warrant. On November 28, 2018, the Company closed on a total of 6,458,664 Units for gross proceeds of C$484,400 (US$365,341) and incurring financing costs of US$10,062, with each purchase warrant exercisable into a Common Share at C$0.10 per Common Share for a period of thirty-six months. For each financing, the Company has accounted for the warrant liability in accordance with ASC Topic 815. The warrants are considered derivative instruments as they were issued in a currency other than the Companys functional currency of the US dollar. The estimated fair value of warrants accounted for as liabilities was determined on the date of issue and marks to market at each financial reporting period. The change in fair value of the warrant is recorded in the condensed consolidated statement of operations and comprehensive loss as a gain or loss and is estimated using the Binomial model. The fair value of the warrant liabilities related to the various tranches of warrants issued were estimated using the Binomial model to determine the fair value using the following assumptions on the day of issuance and as at December 31, 2018: August 9, 2018 December 31, 2018 Expected life 1,095 days 951 days Volatility 100% 100% Risk free interest rate 2.09% 1.26% Dividend yield 0% 0% Share price $0.47 $0.05 Fair value $355,751 $9,172 Change in derivative liability $346,579 November 28, 2018 December 31, 2018 Expected life 1,095 days 1,062 days Volatility 100% 100% Risk free interest rate 1.22% 1.26% Dividend yield 0% 0% Share price $0.09 $0.05 Fair value $265,105 $113,152 Change in derivative liability $151,953 The existing warrant liability as a result of the December 2017 private placement was revalued as at December 31, 2018 and June 30, 2018 using the Binomial model and the following assumptions: June 30, 2018 December 31, 2018 Expected life 1,095 days 708 days Volatility 100% 100% Risk free interest rate 1.97% 1.54% Dividend yield 0% 0% Share price $0.47 $0.05 Fair value $355,994 $453 Change in derivative liability $355,541 At December 31, 2018, there were 41,513,955 common shares issued and outstanding. Warrants As of December 31, 2018, the Company had 13,865,038 warrants outstanding, with exercise prices from C$0.10 to C$2.00, expiring from June 13, 2020 to November 28, 2021. Stock Options In September 2018, 437,500 fully-vested stock options were issued to a consultant to whom C$350,000 was due and payable and reflected in accrued liabilities at September 30, 2018. These options had a 5-year life and were exercisable at CDN$0.80 per share. On October 3, 2018, these options were exercised in full, with consideration received being the liability already on the Companys books, extinguishing the liability in full. The fair value of these stock options was determined on the date of grant using the Black-Scholes valuation model, and using the following underlying assumptions: Year Risk free interest rate Dividend yield Volatility Weighted average life 2018 2.32% 0% 100% 5 years |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 6 - Commitments and Contingencies | Note 6 Commitments and Contingencies Effective June 1, 2017, the Company has a lease agreement for office space at 401 Bay Street, Suite 2702, Toronto, Ontario, Canada, M5H 2Y4. The 5-year lease provides for a monthly gross rent of CDN$29,005 for the first two years, increasing to CDN$29,545 per month for years three through five. The Company has signed sub-leases with other companies that cover approximately 70% of the monthly lease amount. In November 2018, the Company and Placer Mining agreed to amend the terms of the Agreement such that commencing November 2018, Bunker will make monthly payments of $60,000, where previously monthly payments of $200,000 were being made. The $140,000 difference will accumulate to $1,680,000 over 12 months and will become due if Bunker exercises its option to purchase the mine. In addition to the payments to Placer Mining, pursuant to an agreement with the United States Environmental Protection Agency (EPA) whereby for so long as Bunker leases, owns and/or occupies the Bunker Hill Mine, the Company will make payments to the EPA on behalf of the current owner in satisfaction of the EPAs claim for cost recovery. Payments to the EPA started with $1 million 30 days after a fully ratified agreement is signed (which payment was made) followed by $2 million on November 1, 2018 and $3 million on each of the next 5 anniversaries with a final $2 million payment on November 1, 2024. In addition to these payments, the Company agreed to reimburse the EPA for water treatment costs totaling $80,000 per month and paid every six months on December 1 and June 1. The $2 million required for November 1, 2018 and December 1, 2018 payments were not made, and the Company is having discussions with the EPA to amend and defer payments. The $2 million and $480,000 semi-annual payment are being accrued as payable pending completion of discussions with the EPA, where Management hopes to have more clarity on payments. Additionally, third parties paid $85,000 directly to Placer Mining in order to facilitate reinstatement of the lease. The Company, as part of the lease reinstatement, agreed to indemnify Placer Mining if these third parties request the funds to be returned. |
Note 7 - Related Party Transact
Note 7 - Related Party Transactions | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 7 - Related Party Transactions | Note 7 Related Party Transactions During the six months ended December 31, 2018, Julio DiGirolamo (CFO) earned $50,000 ($15,000 in the three months ended December 31, 2018), Howard Crosby (Former director and Former Executive Vice President) earned $20,000 ($5,000 in the three months ended December 31, 2018) and John Ryan (Director and Interim CEO) earned $30,000 ($15,000 in the three months ended December 31, 2018) for services to the Company. Mr. Crosby resigned his positions in November 2018. During the six months ended December 31, 2017, each of Messrs. Bruce Reid (CEO), Julio DiGirolamo (CFO), Howard Crosby (Executive Vice President) and John Ryan (Director) received $5,000 per month for services to the Company. Commencing December 1, 2017, commensurate with the increased activities in the Company, Messrs. Reid and DiGirolamos pay increased to $20,000 and $15,000 per month, respectively. Commencing September 2018, Mr. DiGirolamo agreed to a smaller fee for services. In early December 2017, the Board approved and ratified compensation to Mr. Reid for unaccrued and unpaid salary and bonus, including for risk-capital sums advanced by Mr. Reid to the Company in order that the Company could complete many of its obligations and initiatives during 2017. The payment, totaling $500,000 was accrued at December 31, 2017 and was paid in January 2018. At December 31, 2018 $16,649 is owed to Mr. DiGirolamo, $23,000 to Mr. Crosby and $28,590 to Mr. Ryan, all amounts included in accounts payable. Mr. Bruce Reid (Former CEO) earned $29,177 for consulting services rendered and expenses ($4,260 of the total), which amount is included in accounts payable at December 31, 2018. At December 31, 2017, a balance of CDN$5,000 was included in accounts payable as owing to the Companys CFO. |
Note 8 - Subsequent Events
Note 8 - Subsequent Events | 6 Months Ended |
Dec. 31, 2018 | |
Notes | |
Note 8 - Subsequent Events | Note 8 Subsequent Events In January 2019, the company secured a C$100,000 advance from and unrelated third party with no defined terms specified at this time. The Company is still in discussions with the Environmental Protection Agency to amend the payment terms. |
Note 4 - Convertible Loan Pay_2
Note 4 - Convertible Loan Payable: Schedule of Fair Value of Conversion Feature (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Hummingbird | |
Schedule of Fair Value of Conversion Feature | Principal Amount June 30, 2018 December 31, 2018 Expected life 345 days 165 days Volatility 100% 100% Risk free interest rate 2.04% 1.99% Dividend yield 0% 0% Share price $0.47 $0.05 Fair value $180,353 $0 Change in derivative liability $180,353 Additional Amount August 9, 2018 December 31, 2018 Expected life 365 days 221 days Volatility 100% 100% Risk free interest rate 2.11% 1.99% Dividend yield 0% 0% Share price $0.47 $0.05 Fair value $6,312 $0 Change in derivative liability $6,312 |
Note 4 - Convertible Loan Pay_3
Note 4 - Convertible Loan Payable: Schedule of Fair Value of Warrants (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Schedule of Fair Value of Warrants | Principal Amount June 30, 2018 December 31, 2018 Expected life 714 days 530 days Volatility 100% 100% Risk free interest rate 2.04% 1.54% Dividend yield 0% 0% Share price $0.47 $0.05 Fair value $326,909 $505 Change in derivative liability $326,404 Additional Amount August 9, 2018 December 31, 2018 Expected life 730 days 588 days Volatility 100% 100% Risk free interest rate 2.11% 1.99% Dividend yield 0% 0% Share price $0.47 $0.05 Fair value $161,381 $2,224 Change in derivative liability $159,157 |
Note 5 - Capital Stock and Wa_2
Note 5 - Capital Stock and Warrants: Fair value of warrant liabilities (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Fair value of warrant liabilities | August 9, 2018 December 31, 2018 Expected life 1,095 days 951 days Volatility 100% 100% Risk free interest rate 2.09% 1.26% Dividend yield 0% 0% Share price $0.47 $0.05 Fair value $355,751 $9,172 Change in derivative liability $346,579 November 28, 2018 December 31, 2018 Expected life 1,095 days 1,062 days Volatility 100% 100% Risk free interest rate 1.22% 1.26% Dividend yield 0% 0% Share price $0.09 $0.05 Fair value $265,105 $113,152 Change in derivative liability $151,953 |
Note 5 - Capital Stock and Wa_3
Note 5 - Capital Stock and Warrants: Fair value stock options (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Tables/Schedules | |
Fair value stock options | Year Risk free interest rate Dividend yield Volatility Weighted average life 2018 2.32% 0% 100% 5 years |
Note 1 - Basis of Presentatio_2
Note 1 - Basis of Presentation and Going Concern (Details) - USD ($) | 6 Months Ended | |
Dec. 31, 2018 | Jun. 30, 2018 | |
Details | ||
Deficit accumulated during the exploration stage | $ 27,540,359 | $ 23,613,576 |
Substantial Doubt about Going Concern, Management's Evaluation | In order to continue to meet its plans and fiscal obligations in the current fiscal year and beyond, the Company must seek additional financing. |
Note 2 - Nature of Operations (
Note 2 - Nature of Operations (Details) | 6 Months Ended |
Dec. 31, 2018 | |
Details | |
Entity Incorporation, State Country Name | Nevada |
Entity Incorporation, Date of Incorporation | Feb. 20, 2007 |
Entity Information, Former Legal or Registered Name | Liberty Silver Corp. |
Entity Information, Date to Change Former Legal or Registered Name | Sep. 29, 2017 |
Note 4 - Convertible Loan Pay_4
Note 4 - Convertible Loan Payable (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Accretion | $ (235,255) | $ 0 | $ (343,909) | $ 0 | |
Interest expense | (50,410) | $ 0 | (95,342) | 0 | |
Hummingbird | |||||
Long-term Debt, Gross | $ 2,000,000 | $ 2,000,000 | 2,000,000 | ||
Debt Issuance Costs Incurred During Noncash or Partial Noncash Transaction | 25,750 | 45,824 | |||
Accretion | 235,255 | 50,410 | $ 0 | ||
Interest expense | $ 343,909 | $ 95,342 |
Note 5 - Capital Stock and Wa_4
Note 5 - Capital Stock and Warrants (Details) - $ / shares | Dec. 31, 2018 | Jun. 30, 2018 |
Details | ||
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Note 6 - Commitments and Cont_2
Note 6 - Commitments and Contingencies (Details) | 6 Months Ended |
Dec. 31, 2018 | |
Office lease | |
Other Commitments, Description | Effective June 1, 2017, the Company has a lease agreement for office space at 401 Bay Street, Suite 2702, Toronto, Ontario, Canada, M5H 2Y4. The 5-year lease provides for a monthly gross rent of CDN$29,005 for the first two years, increasing to CDN$29,545 per month for years three through five. The Company has signed sub-leases with other companies that cover approximately 70% of the monthly lease amount. |
Lease and option | |
Other Commitments, Description | In November 2018, the Company and Placer Mining agreed to amend the terms of the Agreement such that commencing November 2018, Bunker will make monthly payments of $60,000, where previously monthly payments of $200,000 were being made. The $140,000 difference will accumulate to $1,680,000 over 12 months and will become due if Bunker exercises its option to purchase the mine. |
EPA | |
Other Commitments, Description | In addition to the payments to Placer Mining, pursuant to an agreement with the United States Environmental Protection Agency (“EPA”) whereby for so long as Bunker leases, owns and/or occupies the Bunker Hill Mine, the Company will make payments to the EPA on behalf of the current owner in satisfaction of the EPA’s claim for cost recovery. |
Note 7 - Related Party Transa_2
Note 7 - Related Party Transactions (Details) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CAD ($) |
DiGirolamo | |||
Salary and Wage, Officer, Excluding Cost of Good and Service Sold | $ 15,000 | $ 50,000 | |
Due to Related Parties, Current | 16,649 | 16,649 | |
Crosby | |||
Salary and Wage, Officer, Excluding Cost of Good and Service Sold | 5,000 | 20,000 | |
Due to Related Parties, Current | 23,000 | 23,000 | |
Ryan | |||
Salary and Wage, Officer, Excluding Cost of Good and Service Sold | 15,000 | 30,000 | |
Due to Related Parties, Current | 28,590 | 28,590 | |
Reid | |||
Salary and Wage, Officer, Excluding Cost of Good and Service Sold | 29,177 | ||
Related Party Transaction, Due from (to) Related Party, Current | $ 500,000 | $ 500,000 | |
Due to Related Parties, Current | $ 5,000 |
Note 8 - Subsequent Events (Det
Note 8 - Subsequent Events (Details) | 6 Months Ended |
Dec. 31, 2018 | |
Details | |
Subsequent Event, Description | In January 2019, the company secured a C$100,000 advance from and unrelated third party with no defined terms specified at this time. |