Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2019 | Nov. 22, 2019 | |
Details | ||
Registrant CIK | 0001407583 | |
Fiscal Year End | --06-30 | |
Registrant Name | Bunker Hill Mining Corp. | |
SEC Form | 10-Q | |
Period End date | Sep. 30, 2019 | |
Tax Identification Number (TIN) | 32-0196442 | |
Number of common stock shares outstanding | 69,817,196 | |
Filer Category | Non-accelerated Filer | |
Current with reporting | Yes | |
Interactive Data Current | Yes | |
Shell Company | false | |
Small Business | true | |
Emerging Growth Company | false | |
Entity Incorporation, State or Country Code | NV | |
Entity File Number | 333-150028 | |
Entity Address, Address Line One | 401 Bay Street, Suite 2702 | |
Entity Address, City or Town | Toronto | |
Entity Address, State or Province | ON | |
Entity Address, Postal Zip Code | M5H 2Y4 | |
City Area Code | 416 | |
Local Phone Number | 477-7771 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Bunker Hill Mining Corp. Conden
Bunker Hill Mining Corp. Condensed Interim Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Current assets | ||
Cash and cash equivalents | $ 599,424 | $ 28,064 |
Accounts receivable | 45,488 | 42,864 |
Prepaid expenses | 21,074 | 35,172 |
Total current assets | 665,986 | 106,100 |
Equipment (note 4) | 45,408 | 52,050 |
Non-current assets | ||
Right-of-use asset, net | 292,538 | 0 |
Long term deposit | 68,939 | 68,939 |
Mining interests | 1 | 1 |
Total assets | 1,032,872 | 227,090 |
Current liabilities | ||
Accounts payable (notes 6 and 11) | 2,027,170 | 2,170,398 |
Accrued liabilities (notes 6 and 10) | 2,880,545 | 2,896,025 |
Other liabilities | 0 | 57,307 |
Interest payable | 249,397 | 201,507 |
Convertible loan payable (note 7) | 1,778,196 | 1,744,327 |
Current portion of lease liability (note 8) | 98,411 | 0 |
Total current liabilities | 7,033,719 | 7,069,564 |
Non-current liabilities | ||
Lease liability (note 8) | 197,616 | 0 |
Derivative warrant liability (note 9) | 2,398,293 | 116,809 |
Total liabilities | 9,629,628 | 7,186,373 |
Shareholders' Deficiency | ||
Preferred shares, $0.001 par value, 10,000,000 preferred shares authorized; No preferred shares issued and outstanding (note 9) | 0 | 0 |
Common shares, $ 0.01 par value, 30,000,000 common shares authorized; 69,817,196 and 15,811,396 common shares issued and outstanding, respectively (note 9) | 698,172 | 158,114 |
Additional paid-in-capital (note 9) | $ 26,142,762 | $ 24,126,667 |
Shares to be issued | 0 | 107,337 |
Deficit accumulated during the exploration stage | $ (35,437,690) | $ (31,351,401) |
Total shareholders' deficiency | (8,596,756) | (6,959,283) |
Total shareholders' deficiency and liabilities | $ 1,032,872 | $ 227,090 |
Bunker Hill Mining Corp. Cond_2
Bunker Hill Mining Corp. Condensed Interim Consolidated Balance Sheets (Unaudited) - Parenthetical - $ / shares | Sep. 30, 2019 | Jun. 30, 2019 |
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 | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Common Stock, Shares, Issued | 69,817,196 | 15,811,396 |
Bunker Hill Mining Corp. Cond_3
Bunker Hill Mining Corp. Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating expenses | ||
Operation and administration | $ 63,634 | $ 658,259 |
Exploration | 958,804 | 810,265 |
Legal and accounting | 28,572 | 69,158 |
Consulting | 84,640 | 73,651 |
Loss from operations | (1,135,650) | (1,611,333) |
Other income or gain (expense or loss) | ||
Change in derivative liability (notes 7 and 9) | (1,813,257) | 1,119,937 |
Accretion expense (note 7) | (33,869) | (108,654) |
Gain on foreign exchange | 673 | 8,492 |
Interest expense (note 7) | (47,890) | (44,932) |
Loss on debt settlement (note 9) | (1,056,296) | 0 |
Loss before income tax | (4,086,289) | (636,490) |
Provision for income taxes | 0 | 0 |
Net loss and comprehensive loss for the period | $ (4,086,289) | $ (636,490) |
Net loss per common share- basic and fully diluted | $ (0.09) | $ (0.19) |
Weighted average number of common shares - basic and fully diluted | 43,825,952 | 3,361,779 |
Bunker Hill Mining Corp. Cond_4
Bunker Hill Mining Corp. Condensed Consolidated Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-in Capital | Warrant | Retained Earnings | Total |
Equity balance, shares at Jun. 30, 2018 | 3,301,372 | ||||
Equity Balance at Jun. 30, 2018 | $ 33,013 | $ 23,364,249 | $ 0 | $ (23,613,576) | $ (216,314) |
Stock-based compensation | $ 0 | $ 43,893 | $ 0 | $ 0 | $ 43,893 |
Shares issued | 1,604 | 547,729 | 0 | 0 | 549,333 |
Shares issued | $ 160,408 | ||||
Issue costs | 0 | $ (25,750) | $ 0 | $ 0 | $ (25,750) |
Warrant valuation | 0 | (355,751) | 0 | 0 | (355,751) |
Net loss for the period | $ 0 | 0 | 0 | (636,490) | (636,490) |
Equity balance, shares at Sep. 30, 2018 | 3,461,780 | ||||
Equity Balance at Sep. 30, 2018 | $ 34,617 | 23,574,370 | 0 | (24,250,066) | (641,079) |
Equity balance, shares at Jun. 30, 2019 | 15,811,396 | ||||
Equity Balance at Jun. 30, 2019 | $ 158,114 | 24,126,667 | 107,337 | (31,351,401) | (6,959,283) |
Stock-based compensation | 0 | ||||
Issue costs | 0 | (65,315) | 0 | 0 | (65,315) |
Warrant valuation | $ 0 | $ (468,227) | $ 0 | $ 0 | $ (468,227) |
Shares issued | 350,090 | 965,636 | (107,337) | 0 | 1,208,389 |
Shares issued | $ 35,008,956 | ||||
Shares issued for debt settlement at $0.09 per share | 169,628 | 1,329,423 | 1,499,051 | ||
Shares issued | $ 16,962,846 | ||||
Shares issued issued for debt settlement at $0.14 per share | 20,340 | 254,578 | 274,918 | ||
Shares issued | $ 2,033,998 | ||||
Net loss for the period | $ 0 | $ 0 | $ 0 | $ (4,086,289) | $ (4,086,289) |
Equity balance, shares at Sep. 30, 2019 | 69,817,196 | ||||
Equity Balance at Sep. 30, 2019 | $ 698,172 | $ 26,142,762 | $ 0 | $ (35,437,690) | $ (8,596,756) |
Bunker Hill Mining Corp. Cond_5
Bunker Hill Mining Corp. Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net loss for the period | $ (4,086,289) | $ (636,490) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 0 | 43,893 |
Depreciation expense | 25,044 | 4,979 |
Change in fair value of warrant liability | 1,813,257 | (1,119,937) |
Accretion expense | 33,869 | 108,654 |
Interest expense on lease liability | 7,787 | 0 |
Loss on debt settlement | 1,056,296 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,624) | 101,736 |
Prepaid expenses | 14,098 | 167,042 |
Accounts payable | 329,138 | 12,597 |
Accrued liabilities | 229,827 | (164,654) |
Other liabilities | (9,114) | (5,369) |
Interest payable | 47,890 | 44,931 |
Net cash used in operating activities | (540,821) | (1,442,618) |
Financing activities | ||
Proceeds from convertible loan payable | 0 | 474,250 |
Proceeds from issuance of common stock, net of issue costs | 1,143,074 | 523,200 |
Lease payments | (30,893) | 0 |
Net cash provided by financing activities | 1,112,181 | 997,450 |
Net change in cash and cash equivalents | 571,360 | (445,168) |
Cash and cash equivalents, beginning of period | 28,064 | 502,660 |
Cash and cash equivalents, end of period | 599,424 | 57,492 |
Non-cash activities: | ||
Stock issued during period value accounts payable and accrued liabilities | $ 717,673 | $ 0 |
Note 1 - Nature and Continuance
Note 1 - Nature and Continuance of Operations and Going Concern | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
Note 1 - Nature and Continuance of Operations and Going Concern | 1. Nature and continuance of operations and going concern Bunker Hill Mining Corp. (the Company) 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. The Companys registered office is located at 1802 N. Carson Street, Suite 212, Carson City Nevada 89701, and its head office is located at 401 Bay Street, Suite 2702, Toronto, Ontario, Canada, M5H 2Y4. 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 continues to work at developing its project with a view towards putting it into production. These unaudited condensed interim consolidated financial statements have been prepared on a going concern basis. Bunker Hill Mining Corp. (the "Company") has incurred losses since inception resulting in an accumulated deficit of $35,437,690 and further losses are anticipated in the development of its business. The Company does not have sufficient working capital needed to meet its current fiscal obligations and commitments. In order to continue to meet its fiscal obligations in the current fiscal year and beyond, the Company must seek additional financing. This raises substantial doubt about the Companys ability to continue as a going concern. 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 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 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. The ability of the Company to emerge from the exploration stage is dependent upon, among other things, obtaining additional financing to continue operations, explore and develop the mineral properties and the discovery, development, and sale of reserves. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
Note 2 - Basis of Presentation | 2. Basis of presentation The accompanying unaudited condensed interim 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 condensed interim 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, 2019. The interim results for the period ended September 30, 2018 are not necessarily indicative of the results for the full fiscal year. The unaudited interim condensed consolidated financial statements are presented in USD, which is the functional currency. |
Note 3 - New and Recently Adopt
Note 3 - New and Recently Adopted Technical and Accounting Pronouncements | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
Note 3 - New and Recently Adopted Technical and Accounting Pronouncements | 3. New and recently adopted technical and accounting pronouncements The Company adopted ASU 2016-02 effective July 1, 2019. ASU 2016-02 requires lessees to recognize most leases on the balance sheet to reflect the right to use an asset for a period of time and an associated lease liability for payments. The Company has applied ASU 2016-02 in accordance with the modified retrospective approach only to contracts that were previously identified as leases. Contracts that were not identified as leases under previous standards were not reassessed for whether there is a lease. Therefore, the definition of a lease under ASU 2016-02 was applied only to contacts entered into or changed on or after July 1, 2019. The Company has determined that there is no change to the comparative periods or transitional adjustments required as a result of the adoption of this standard. The aggregate lease liability recognized in the statement of financial position at July 1, 2019 and Company's operating lease commitment at July 1, 2019 can be reconciled as follows: Operating lease commitment as at July 1, 2019 370,711 Effect of discounting at the incremental borrowing rate (51,578) Total lease liability as at July 1, 2019 319,133 The weighted average incremental borrowing rate applied to lease liability on July 1, 2019 was 10%. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The pronouncement revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. The guidance is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the potential impact of this guidance on the consolidated financial statements. |
Note 4 - Equipment
Note 4 - Equipment | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
Note 4 - Equipment | 4. Equipment Equipment consists of the following: September 30, 2019 June 30, 2019 Leasehold improvements $ - $ 59,947 Equipment 9,050 9,050 9,050 68,997 Less accumulated depreciation (3,642) (16,947) Equipment, net 5,408 S 52,050 |
Note 5 - Right-of-use asset
Note 5 - Right-of-use asset | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
Note 5 - Right-of-use asset | 5. Right-of-use asset Right-of-use asset consists of the following: September 30, 2019 June 30, 2019 Office lease $ 319,133 $ - Less accumulated depreciation (26,595) - Right-of-use asset, net $ 292,538 $ - |
Note 6 - Mining Interests
Note 6 - Mining Interests | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
Note 6 - Mining Interests | 6. 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), which letter of intent was further amended on March 29, 2017, to acquire the Bunker Hill Mine in Idaho and its associated milling facility located in Kellogg, Idaho, in the Coeur dAlene Basin (the Letter of Intent). Pursuant to the terms and conditions of the Letter of Intent, the acquisition, which was subject to due diligence, would include all mining claims, surface rights, fee parcels, mineral interests, existing infrastructure, machinery and buildings at the Kellogg Tunnel portal in Milo Gulch, or anywhere underground at the Bunker Hill Mine Complex. The acquisition would also include all current and historic data relating to the Bunker Hill Mine Complex, such as drill logs, reports, maps, and similar information located at the mine site or any other location. 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 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 commences 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. 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 $45 million with purchase payments to be made over a ten-year period to Placer Mining. 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, 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. As at September 30, 2019, the Company has accrued for $1,643,000 of the deferred payments and is included 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, 2018, December 1, 2018 and June 1, 2019 payments were not made, and the Company is having discussions with the EPA to amend and defer payments. The Company has included all unpaid EPA costs in accrued liabilities. |
Note 7 - Convertible Loan Payab
Note 7 - Convertible Loan Payable | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
Note 7 - Convertible Loan Payable | 7. Convertible loan payable On June 13, 2018, the Company entered into a loan and warrant agreement with Hummingbird Resources PLC (Hummingbird), an arms length investor, for an unsecured convertible loan in the aggregate sum of $1,500,000, bearing interest at 10% per annum, maturing in one year. Contemporaneously, the Company agreed to issue 229,464 share purchase warrants, entitling the lender to acquire 229,464 common shares of the Company, at a price of C$8.50 per share, for two years. Under the terms of the loan agreement, the lender 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 the Company at a price per share equal to C$8.50. In the event that a notice of conversion would result in the lender holding 10% or more of the Companys issued and outstanding shares, then, in the alternative, and under certain circumstances, the Company would be required to pay cash to the lender in an amount equal C$8.50 multiplied by the number of shares intended to be issued upon conversion. Further, in the event that the lender holds more than 5% of the issued and outstanding shares of the Company subsequent to the exercise of any of its convertible securities held under this placement, it shall have the right to appoint one director to the board of the Company. Lastly, among other things, the loan agreement further provides that for as long as any amount is outstanding under the convertible loan, the investor retains a right of first refusal on any Company financing or joint venture/strategic partnership/disposal of assets. 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$8.50; (ii) 229,464 common shares may be acquired upon exercise of warrants at a price of C$8.50 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$4.50; and (iv) 116,714 common shares may be acquired upon exercise of warrants at a price of C$4.50 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. In March 2019, Hummingbird agreed to extend the scheduled maturity date of the loan to June 30, 2020. This was accounted for as a loan extinguishment which resulted in the recording of a net loss on loan extinguishment of $1,195,880. In June 2019, the Company repaid $100,000 of the Additional Amount, which resulted in the recording of a net loss on loan extinguishment of $8,193. 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 functional 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 September 30, 2019, the fair value of the conversion features was estimated using the Binomial model to determine the fair value of conversion features using the following assumptions: Principal Amount June 30, 2019 September 30, 2019 Expected life 365 days 273 days Volatility 100% 100% Risk free interest rate 1.75% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $0 $0 Change in derivative liability $0 Additional Amount June 30, 2019 September 30, 2019 Expected life 365 days 273 days Volatility 100% 100% Risk free interest rate 1.75% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $0 $0 Change in derivative liability $0 The fair value of the warrants was estimated using the Binomial model to determine the fair value of the derivative warrant liabilities using the following assumptions: Principal Amount June 30, 2019 September 30, 2019 Expected life 349 days 257 days Volatility 100% 100% Risk free interest rate 1.95% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $0 $0 Change in derivative liability $0 Additional Amount June 30, 2019 September 30, 2019 Expected life 405 days 314 days Volatility 100% 100% Risk free interest rate 1.84% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $0 $0 Change in derivative liability $0 The residual value of the Principal Amount was deemed to be $61,448, net of $20,074 of expenses, and the residual value of the Additional Amount was deemed to be $34,850, net of $38,449 of expenses. The residual value of the loan after the loan extension was deemed to be $1,800,000, net of $200,000 of expenses. Accretion expense for the three months ended September 30, 2019 was $33,869 (three months ended September 30, 2018 - $9,373) based on effective interest rate of 16% after the loan extension. Interest expense for the three months ended September 30, 2019 was $47,890 (three months ended September 30, 2018 - $44,932). Amount Balance, June 30, 2018 $ 70,820 Proceeds on issuance 500,000 Debt issue costs (238,455) Conversion feature valuation (205,444) Warrant valuation (221,256) Accretion expense 734,589 Loss on loan extinguishment 1,204,073 Partial extinguishment (100,000) Balance, June 30, 2019 $ 1,744,327 Accretion expense 33,869 Balance, September 30, 2019 $ 1,778,196 |
Note 8 - Lease liability
Note 8 - Lease liability | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
Note 8 - Lease liability | 8. Lease liability The Company has an operating lease for office space that expires in 2022. Below is a summary of the Company's lease liability as of September 30, 2019: Office lease Balance, June 30, 2019 $ - Addition 319,133 Interest expense 7,787 Lease payments (30,893) Balance, September 30, 2019 $ 296,027 Less: current portion (98,411) Long-term lease liability $ 197,616 |
Note 9 - Capital Stock, Warrant
Note 9 - Capital Stock, Warrants and Stock Options | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
Note 9 - Capital Stock, Warrants and Stock Options | 9. Capital stock, warrants and stock options Authorized The total authorized capital is as follows: · · On May 23, 2019, the Company affected a consolidation of its issued and outstanding share capital on the basis of one (1) post-consolidation share for each ten (10) pre-consolidation common shares, which has been retrospectively applied in these financial statements. Issued and outstanding In August 2018, the Company closed a private placement, issuing 160,408 Units to Gemstone 102 Ltd. (Gemstone) at a price of C$4.50 per Unit, for gross proceeds of C$721,834 ($549,333) and incurring financing costs of $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$4.50 for a period of three years. Prior to the issuance of the Units, Gemstone held 400,000 common shares of the Company and 200,000 warrants (Prior Warrants) exercisable at a price of C$20.00 per share. Immediately prior to closing, the Prior Warrants were early terminated by mutual agreement of the Company and Gemstone. Upon issuance of the 160,408 Units to Gemstone, Gemstone beneficially owns or exercises control or direction over 560,408 common shares of the Company. Assuming exercise of the Unit Warrants, Gemstone would hold 720,816 of the outstanding common shares of the Company. 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$0.75 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 645,866 Units for gross proceeds of C$484,400 ($365,341) and incurring financing costs of $10,062, with each purchase warrant exercisable into a Common Share at C$1.00 per Common Share for a period of thirty-six months. On June 27, 2019, the Company closed the first tranche ("First Tranche") of a non-brokered private placement, issuing 11,660,000 units ("June 2019 Unit") at a price of C$0.05 per June 2019 Unit for gross proceeds of C$583,000 ($436,608) and incurring financing costs of $19,640. Each June 2019 Unit consists of one common share of the Company and one common share purchase warrant ("June 2019 Warrant"). Each whole June 2019 Warrant entitles the holder to acquire one common share at a price of C$0.25 per common share for a period of two years. As a part of the First Tranche, Hummingbird Resources PLC ("Hummingbird") has acquired 2,660,000 June 2019 Units for C$133,000 ($100,000) which was applied to reduction of the principal amount owing under the convertible loan facility (see note 7). On August 1, 2019, the Company closed the second and final tranche ("Tranche Two") of the non-brokered private placement, issuing 23,005,800 units ("August 2019 Units") at $0.05 per August 2019 Unit for gross proceeds of C$1,150,290 ($868,758) and incurring financing costs of $36,468. Each August 2019 Unit consists of one common share of the Company and one common share purchase warrant, which entitles the holder to acquire one common share at a price of C$0.25 per common share for a period of two years. Of the 23,005,800 August 2019 Units issued, 16,962,846 August 2019 Units were issued to settle $640,556 of debt at a deemed price of $0.09 based on the fair value of the shares issued. As a result, the Company recorded resulting in loss on debt settlement of $858,495. On August 23, 2019, the Company closed the first tranche (the "First Tranche") of the non-brokered private placement, issuing 30,000,000 common shares of the Company at C$0.05 per share for gross proceeds of C$1,500,000 ($1,126,344) and incurring financing costs of $28,847. Of the 30,000,000 common shares issued, 2,033,998 common shares were issued to settle $77,117 of debt at a deemed price of $0.14 based on the fair value of the shares issued. As a result, the Company recorded a loss on debt settlement of $197,800. On August 30, 2019, the Company closed the second and final tranche (the "Second Tranche") of the non-brokered private placement, issuing 1,000,000 common shares at C$0.05 per share for gross proceeds of C$50,000 ($37,550). For each financing, the Company has accounted for the warrants 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 unaudited condensed interim 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 during the year was estimated using the Binomial model to determine the fair value using the following assumptions on the day of issuance and as at September 30, 2019: August 2019 issuance August 1, 2019 September 30, 2019 Expected life 731 days 671 days Volatility 100% 100% Risk free interest rate 1.59% 1.59% Dividend yield 0% 0% Share price $0.07 $0.15 Fair value $468,227 $1,589,542 Change in derivative liability $(1,121,315) The warrant liabilities as a result of the December 2017, August 2018, November 2018, and June 2019 private placements were revalued as at September 30, 2019 and June 30, 2019 using the Binomial model and the following assumptions: December 2017 issuance June 30, 2019 September 30, 2019 Expected life 532 days 432 days Volatility 100% 100% Risk free interest rate 1.66% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $0 $0 Change in derivative liability $0 August 2018 issuance June 30, 2019 September 30, 2019 Expected life 771 days 679 days Volatility 100% 100% Risk free interest rate 1.59% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $0 $0 Change in derivative liability $0 November 2018 issuance June 30, 2019 September 30, 2019 Expected life 882 days 790 days Volatility 100% 100% Risk free interest rate 1.47% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $1,875 $18,094 Change in derivative liability $(16,219) June 2019 issuance June 30, 2019 September 30, 2019 Expected life 727 days 637 days Volatility 100% 100% Risk free interest rate 1.47% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $114,934 $790,658 Change in derivative liability $(675,724) Warrants Number of warrants Weighted average exercise price (C$) Balance, June 30, 2018 663,496 $ 16.02 Issued 12,582,988 0.38 Cancelled (200,000) 20.00 Balance, June 30, 2019 13,046,484 $ 0.88 Issued 23,005,800 0.25 Balance, September 30, 2019 36,052,284 $ 0.48 Expiry date Exercise price (C$) Number of warrants Number of warrants exercisable December 5, 2020 20.00 227,032 227,032 December 13, 2020 20.00 7,000 7,000 June 13, 2020 8.50 229,464 229,464 August 9, 2021 4.50 116,714 116,714 August 9, 2021 4.50 160,408 160,408 November 28, 2021 1.00 645,866 645,866 June 27, 2021 0.25 11,660,000 11,660,000 August 1, 2019 0.25 23,005,800 23,005,800 36,052,284 36,052,284 Stock options The following table summarizes the stock option activity during the periods ended September 30, 2019 and 2019: Number of stock options Weighted average exercise price Balance, June 30, 2018 287,100 $ 7.50 Granted (i) 43,750 8.00 Exercised (43,750) 8.00 Balance, June 30, 2019 and September 30, 2019 287,100 $ 7.50 (i) On September 27, 2018, 43,750 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 C$8.00 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 vesting of these options resulting in stock-based compensation of $43,893, which is included in operation and administration expenses on the consolidated statements of loss and comprehensive loss. 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 Stock price Weighted average life 2019 2.32% 0% 100% C$2.30 5 years The following table reflects the actual stock options issued and outstanding as of September 30, 2019: Exercise price (C$) Weighted average remaining contractual life (years) Number of options outstanding Number of options vested (exercisable) 1.875 0.39 5,600 5,600 7.60 2.59 223,500 223,500 12.80 3.21 10,000 10,000 6.40 3.72 48,000 48,000 287,100 287,100 |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
Note 10 - Commitments and Contingencies | 10. Commitments and contingencies 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 to be paid every six months on December 1 and June 1. The $2 million required for November 1, 2018, December 1, 2018 and June 1, 2019 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. As at September 30, 2019, $2,800,000 payable to the EPA has been included in accrued liabilities. |
Note 11 - Related Party Transac
Note 11 - Related Party Transactions | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
Note 11 - Related Party Transactions | 11. Related party transactions During the three months ended September 30, 2019, John Ryan (Director and Interim CEO) billed $15,500, Wayne Parsons (Director and CFO) billed $42,618, and Hugh Aird billed $9,774 for services to the Company. At September 30, 2019, $46,413 is owed to Mr. Parsons, all amounts included in accounts payable and accrued liabilities. |
Note 12 - Subsequent Event
Note 12 - Subsequent Event | 3 Months Ended |
Sep. 30, 2019 | |
Notes | |
Note 12 - Subsequent Event | 12. Subsequent event On October 24, 2019, the Company granted 1,575,000 stock options to the directors and officers of the Company. The stock options have a 5-year life and are exercisable at C0.60 per share. 1,200,000 stock options vest 1/4 each on 6 month, 12 month, 18 month, and 24 month anniversaries of grant date. 375,000 stock options vested immediately. On November 13, 2019, the Company issued a promissory note in the amount of $300,000. The note is unsecured, bears interest of 1% monthly, and is due on demand. In consideration for the loan, the Company issued 400,000 common share purchase warrants to the lender. Each whole warrant entitles the lender to acquire one common share of the Company at a price of C$0.80 per share for a period of two years. On October 22, 2019, the Company signed a further amendment to the Agreement (see note 6). Under the new amended agreement, the lease period has been extended for an additional period of none months through August 1, 2020. The Company will continue to make a monthly care and maintenance payment of $60,000. Additionally, the option to purchase has been amended providing for a purchase price of $11 million for 100% of the marketable assets of Bunker Assets. The purchase option may be exercised at any time during the remaining period of the lease. An additional term of the amended lease provides for the elimination of all royalty payments that were to be paid to the mine owner. On November 15, 2019, the Company granted 5,074,494 stock options to the officers of the Company. The stock options have a 5-year life and are exercisable at C$0.70 per share, vesting 1/3 on first, second and third anniversaries of the grant date. |
Note 3 - New and Recently Ado_2
Note 3 - New and Recently Adopted Technical and Accounting Pronouncements: Reconciliation of aggregate lease liability and operating lease commitment (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Reconciliation of aggregate lease liability and operating lease commitment | Operating lease commitment as at July 1, 2019 370,711 Effect of discounting at the incremental borrowing rate (51,578) Total lease liability as at July 1, 2019 319,133 |
Note 4 - Equipment_ Property, P
Note 4 - Equipment: Property, Plant and Equipment (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Property, Plant and Equipment | September 30, 2019 June 30, 2019 Leasehold improvements $ - $ 59,947 Equipment 9,050 9,050 9,050 68,997 Less accumulated depreciation (3,642) (16,947) Equipment, net 5,408 S 52,050 |
Note 5 - Right-of-use asset_ Sc
Note 5 - Right-of-use asset: Schedule of right of use assets (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Schedule of right of use assets | September 30, 2019 June 30, 2019 Office lease $ 319,133 $ - Less accumulated depreciation (26,595) - Right-of-use asset, net $ 292,538 $ - |
Note 7 - Convertible Loan Pay_2
Note 7 - Convertible Loan Payable: Assumptions applied to fair value of the conversion feature (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Hummingbird | |
Assumptions applied to fair value of the conversion feature | Principal Amount June 30, 2019 September 30, 2019 Expected life 365 days 273 days Volatility 100% 100% Risk free interest rate 1.75% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $0 $0 Change in derivative liability $0 Additional Amount June 30, 2019 September 30, 2019 Expected life 365 days 273 days Volatility 100% 100% Risk free interest rate 1.75% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $0 $0 Change in derivative liability $0 |
Note 7 - Convertible Loan Pay_3
Note 7 - Convertible Loan Payable: Assumptions applied to fair value of the warrants (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Hummingbird | |
Assumptions applied to fair value of the warrants | Principal Amount June 30, 2019 September 30, 2019 Expected life 349 days 257 days Volatility 100% 100% Risk free interest rate 1.95% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $0 $0 Change in derivative liability $0 Additional Amount June 30, 2019 September 30, 2019 Expected life 405 days 314 days Volatility 100% 100% Risk free interest rate 1.84% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $0 $0 Change in derivative liability $0 |
Note 7 - Convertible Loan Pay_4
Note 7 - Convertible Loan Payable: Schedule of Debt (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Schedule of Debt | Amount Balance, June 30, 2018 $ 70,820 Proceeds on issuance 500,000 Debt issue costs (238,455) Conversion feature valuation (205,444) Warrant valuation (221,256) Accretion expense 734,589 Loss on loan extinguishment 1,204,073 Partial extinguishment (100,000) Balance, June 30, 2019 $ 1,744,327 Accretion expense 33,869 Balance, September 30, 2019 $ 1,778,196 |
Note 8 - Lease liability_ Sched
Note 8 - Lease liability: Schedule of Capital Leased Assets (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Schedule of Capital Leased Assets | Office lease Balance, June 30, 2019 $ - Addition 319,133 Interest expense 7,787 Lease payments (30,893) Balance, September 30, 2019 $ 296,027 Less: current portion (98,411) Long-term lease liability $ 197,616 |
Note 9 - Capital Stock, Warra_2
Note 9 - Capital Stock, Warrants and Stock Options: Assumptions applied to fair value of the conversion feature (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value | |
Assumptions applied to fair value of the conversion feature | August 2019 issuance August 1, 2019 September 30, 2019 Expected life 731 days 671 days Volatility 100% 100% Risk free interest rate 1.59% 1.59% Dividend yield 0% 0% Share price $0.07 $0.15 Fair value $468,227 $1,589,542 Change in derivative liability $(1,121,315) |
Revalued | |
Assumptions applied to fair value of the conversion feature | December 2017 issuance June 30, 2019 September 30, 2019 Expected life 532 days 432 days Volatility 100% 100% Risk free interest rate 1.66% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $0 $0 Change in derivative liability $0 August 2018 issuance June 30, 2019 September 30, 2019 Expected life 771 days 679 days Volatility 100% 100% Risk free interest rate 1.59% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $0 $0 Change in derivative liability $0 November 2018 issuance June 30, 2019 September 30, 2019 Expected life 882 days 790 days Volatility 100% 100% Risk free interest rate 1.47% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $1,875 $18,094 Change in derivative liability $(16,219) June 2019 issuance June 30, 2019 September 30, 2019 Expected life 727 days 637 days Volatility 100% 100% Risk free interest rate 1.47% 1.59% Dividend yield 0% 0% Share price $0.05 $0.15 Fair value $114,934 $790,658 Change in derivative liability $(675,724) |
Note 9 - Capital Stock, Warra_3
Note 9 - Capital Stock, Warrants and Stock Options: Schedule of Warrants Activity Table Text Block (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Schedule of Warrants Activity Table Text Block | Number of warrants Weighted average exercise price (C$) Balance, June 30, 2018 663,496 $ 16.02 Issued 12,582,988 0.38 Cancelled (200,000) 20.00 Balance, June 30, 2019 13,046,484 $ 0.88 Issued 23,005,800 0.25 Balance, September 30, 2019 36,052,284 $ 0.48 |
Note 9 - Capital Stock, Warra_4
Note 9 - Capital Stock, Warrants and Stock Options: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Schedule of Stockholders' Equity Note, Warrants or Rights | Expiry date Exercise price (C$) Number of warrants Number of warrants exercisable December 5, 2020 20.00 227,032 227,032 December 13, 2020 20.00 7,000 7,000 June 13, 2020 8.50 229,464 229,464 August 9, 2021 4.50 116,714 116,714 August 9, 2021 4.50 160,408 160,408 November 28, 2021 1.00 645,866 645,866 June 27, 2021 0.25 11,660,000 11,660,000 August 1, 2019 0.25 23,005,800 23,005,800 36,052,284 36,052,284 |
Note 9 - Capital Stock, Warra_5
Note 9 - Capital Stock, Warrants and Stock Options: Schedule of Stock Options Activity Table Text Block (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Schedule of Stock Options Activity Table Text Block | Number of stock options Weighted average exercise price Balance, June 30, 2018 287,100 $ 7.50 Granted (i) 43,750 8.00 Exercised (43,750) 8.00 Balance, June 30, 2019 and September 30, 2019 287,100 $ 7.50 |
Note 9 - Capital Stock, Warra_6
Note 9 - Capital Stock, Warrants and Stock Options: Schedule of Fair Value Assumptions Stock Options (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Schedule of Fair Value Assumptions Stock Options | Year Risk free interest rate Dividend yield Volatility Stock price Weighted average life 2019 2.32% 0% 100% C$2.30 5 years |
Note 9 - Capital Stock, Warra_7
Note 9 - Capital Stock, Warrants and Stock Options: Information on stock options outstanding (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Tables/Schedules | |
Information on stock options outstanding | Exercise price (C$) Weighted average remaining contractual life (years) Number of options outstanding Number of options vested (exercisable) 1.875 0.39 5,600 5,600 7.60 2.59 223,500 223,500 12.80 3.21 10,000 10,000 6.40 3.72 48,000 48,000 287,100 287,100 |
Note 1 - Nature and Continuan_2
Note 1 - Nature and Continuance of Operations and Going Concern (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Details | ||
Substantial Doubt about Going Concern | These unaudited condensed interim consolidated financial statements have been prepared on a going concern basis.  Bunker Hill Mining Corp. (the "Company") has incurred losses since inception resulting in an accumulated deficit of $35,437,690 and further losses are anticipated in the development of its business.  The Company does not have sufficient working capital needed to meet its current fiscal obligations and commitments.  In order to continue to meet its fiscal obligations in the current fiscal year and beyond, the Company must seek additional financing.  This raises substantial doubt about the Company’s ability to continue as a going concern.  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 consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. | |
Deficit accumulated during the exploration stage | $ 35,437,690 | $ 31,351,401 |
Substantial Doubt about Going Concern, Management's Evaluation | Management is considering various financing alternatives including, but not limited to, raising capital through the capital markets and debt financing. These 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 3 - New and Recently Ado_3
Note 3 - New and Recently Adopted Technical and Accounting Pronouncements: Reconciliation of aggregate lease liability and operating lease commitment (Details) | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Details | |
Operating Lease, Cost | $ 319,133 |
Note 4 - Equipment_ Property,_2
Note 4 - Equipment: Property, Plant and Equipment (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Details | ||
Leasehold improvements | $ 0 | $ 59,947 |
Equipment | 9,050 | 9,050 |
Subtotal | 9,050 | 68,997 |
Less accumulated depreciation | (3,642) | (16,947) |
Equipment, net | $ 5,408 | $ 52,050 |
Note 5 - Right-of-use asset_ _2
Note 5 - Right-of-use asset: Schedule of right of use assets (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2019 |
Details | |||
Office lease | $ 319,133 | $ 0 | $ 319,133 |
Depreciation expense lease | (26,595) | 0 | |
Right-of-use asset, net | $ 292,538 | $ 0 | $ 292,538 |
Note 6 - Mining Interests (Deta
Note 6 - Mining Interests (Details) | 3 Months Ended |
Sep. 30, 2019 | |
Bunker Hill | |
Equity Method Investment, Description of Principal Activities | On November 27, 2016, the Company entered into a non-binding letter of intent with Placer Mining Corp. (“Placer Mining”), which letter of intent was further amended on March 29, 2017, to acquire the Bunker Hill Mine in Idaho and its associated milling facility located in Kellogg, Idaho, in the Coeur d’Alene Basin (the “Letter of Intent”). Pursuant to the terms and conditions of the Letter of Intent, the acquisition, which was subject to due diligence, would include all mining claims, surface rights, fee parcels, mineral interests, existing infrastructure, machinery and buildings at the Kellogg Tunnel portal in Milo Gulch, or anywhere underground at the Bunker Hill Mine Complex. The acquisition would also include all current and historic data relating to the Bunker Hill Mine Complex, such as drill logs, reports, maps, and similar information located at the mine site or any other location. |
Note 7 - Convertible Loan Pay_5
Note 7 - Convertible Loan Payable (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Accretion expense (note 7) | $ (33,869) | $ (108,654) | |||
Hummingbird | |||||
Debt Instrument, Convertible, Terms of Conversion Feature | On June 13, 2018, the Company entered into a loan and warrant agreement with Hummingbird Resources PLC (“Hummingbird”), an arm’s length investor, for an unsecured convertible loan in the aggregate sum of $1,500,000, bearing interest at 10% per annum, maturing in one year. Contemporaneously, the Company agreed to issue 229,464 share purchase warrants, entitling the lender to acquire 229,464 common shares of the Company, at a price of C$8.50 per share, for two years. Under the terms of the loan agreement, the lender 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 the Company at a price per share equal to C$8.50. In the event that a notice of conversion would result in the lender holding 10% or more of the Company’s issued and outstanding shares, then, in the alternative, and under certain circumstances, the Company would be required to pay cash to the lender in an amount equal C$8.50 multiplied by the number of shares intended to be issued upon conversion. Further, in the event that the lender holds more than 5% of the issued and outstanding shares of the Company subsequent to the exercise of any of its convertible securities held under this placement, it shall have the right to appoint one director to the board of the Company. Lastly, among other things, the loan agreement further provides that for as long as any amount is outstanding under the convertible loan, the investor retains a right of first refusal on any Company financing or joint venture/strategic partnership/disposal of assets. | ||||
Convertible Debt | $ 2,000,000 | $ 2,000,000 | |||
Extinguishment of Debt, Amount | 8,193 | $ 1,195,880 | |||
Residual value of the promissory note, net | 1,800,000 | ||||
Residual value of the promissory note, expenses | 200,000 | ||||
Accretion expense (note 7) | 33,869 | 9,373 | |||
Interest expense | $ 47,890 | $ 44,932 | |||
Hummingbird Principal Amount | |||||
Convertible Debt | $ 1,500,000 | 1,500,000 | |||
Residual value of the promissory note, net | 61,448 | ||||
Residual value of the promissory note, expenses | 20,074 | ||||
Hummingbird Additional Amount | |||||
Residual value of the promissory note, net | 34,850 | ||||
Residual value of the promissory note, expenses | $ 38,449 |
Note 7 - Convertible Loan Pay_6
Note 7 - Convertible Loan Payable: Schedule of Debt (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Jun. 30, 2019 | |
Details | ||
Balance | $ 70,820 | |
Proceeds on issuance | 500,000 | |
Debt issue costs | (238,455) | |
Conversion feature valuation | (205,444) | |
Warrant valuation debt | (221,256) | |
Accretion expense debt | $ 33,869 | 734,589 |
Loss on loan extinguishment | 1,204,073 | |
Partial extinguishment | (100,000) | |
Convertible debt | $ 1,778,196 | $ 1,744,327 |
Note 8 - Lease liability_ Sch_2
Note 8 - Lease liability: Schedule of Capital Leased Assets (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 |
Details | ||||
Operating Lease, Expense | $ 319,133 | $ 0 | $ 319,133 | |
Interest expense on lease liability | 7,787 | $ 0 | ||
Lease payments | (30,893) | $ 0 | ||
Operating Lease, Liability | 296,027 | 296,027 | ||
Current portion of lease liability (note 8) | (98,411) | 0 | (98,411) | |
Lease liability (note 8) | $ 197,616 | $ 0 | $ 197,616 |
Note 9 - Capital Stock, Warra_8
Note 9 - Capital Stock, Warrants and Stock Options (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Keystone | ||
Private placement units issued | 160,408 | |
Proceeds from Issuance of Private Placement | $ 549,333 | |
Nonbrokered Private Placement | ||
Private placement units issued | 11,660,000 | |
Proceeds from Issuance of Private Placement | $ 436,608 |
Note 9 - Capital Stock, Warra_9
Note 9 - Capital Stock, Warrants and Stock Options: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) | Sep. 30, 2019shares |
Details | |
Number of warrants outstanding | 36,052,284 |
Warrants Exercisable | 36,052,284 |
Note 9 - Capital Stock, Warr_10
Note 9 - Capital Stock, Warrants and Stock Options: Schedule of Stock Options Activity Table Text Block (Details) | Sep. 30, 2019shares |
Details | |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 287,100 |
Note 9 - Capital Stock, Warr_11
Note 9 - Capital Stock, Warrants and Stock Options: Information on stock options outstanding (Details) | Sep. 30, 2019shares |
Details | |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 287,100 |
Note 10 - Commitments and Con_2
Note 10 - Commitments and Contingencies (Details) | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Placer | |
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. 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 to be paid every six months on December 1 and June 1. The $2 million required for November 1, 2018, December 1, 2018 and June 1, 2019 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. As at September 30, 2019, $2,800,000 payable to the EPA has been included in accrued liabilities. |
Accrued Liabilities | $ 2,800,000 |
Note 11 - Related Party Trans_2
Note 11 - Related Party Transactions (Details) | Sep. 30, 2019USD ($) |
Ryan | |
Accounts payable related party | $ 15,500 |
Parsons | |
Accounts payable related party | 42,618 |
Accounts payable related party | 46,413 |
Aird | |
Accounts payable related party | $ 9,774 |
Note 12 - Subsequent Event (Det
Note 12 - Subsequent Event (Details) | Nov. 15, 2019 | Nov. 13, 2019 | Oct. 24, 2019 | Oct. 22, 2019 |
Details | ||||
Subsequent Event, Description | On November 15, 2019, the Company granted 5,074,494 stock options to the officers of the Company. | On November 13, 2019, the Company issued a promissory note in the amount of $300,000. | On October 24, 2019, the Company granted 1,575,000 stock options to the directors and officers of the Company. | On October 22, 2019, the Company signed a further amendment to the Agreement (see note 6). Under the new amended agreement, the lease period has been extended for an additional period of none months through August 1, 2020. |