Capital stock, warrants and stock options | 11. Capital stock, warrants and stock options Authorized The total authorized capital is as follows: ● 1,500,000,000 0.000001 ● 10,000,000 0.000001 Issued and outstanding In February 2021, the Company closed a non-brokered private placement of units of the Company (the “February 2021 Offering”), issuing 19,576,360 0.40 6,168,069 7,830,544 0.60 five years 154,630 351,000 0.40 The Company also issued 417,720 132,000 0.45 56,146 In April 2022, the Company closed a private placement of 37,849,325 1,471,664 9,384,622 11,796,297 4,809,160 Bunker Hill Mining Corp. Notes to Consolidated Financial Statements Years Ended December 31, 2022 and December 31, 2021 (Expressed in United States Dollars) The Special Warrants were issued at a price of C$ 0.30 0.37 On May 31, 2022, the Company announced that it had received a receipt from the Ontario Securities Commission for its final short-form Canadian prospectus qualifying the distribution of the common stock of the Company and common stock purchase warrants of the Company issuable upon exercise of the special warrants of the Company that were issued on April 1, 2022. The Company also announced that it received notice from the United States Securities and Exchange Commission that its Form S-1 has been declared effective as of May 27, 2022. As a result of obtaining the receipt for the Canadian prospectus and the declaration of effectiveness for the Form S-1, each unexercised Special Warrant was automatically exercised into one Common Share and one Warrant without further action on the part of the holders. The non-brokered 1,471,664 0.30 0.37 In connection with the special warrants offering, the agents earned a cash commission in the amount of C$ 563,968 1,879,892 0.30 0.37 In April 2022, the Company issued 1,315,856 In April 2022, the Company issued 768,750 In May 2022, the Company issued 10,416,667 0.245 0.37 In June 2022, the Company issued 1,218,000 0.37 In June 2022, the Company issued 165,000 In July 2022, the Company issued 1,975,482 In September 2022, the Company issued 33,000 In October 2022, the Company issued 8,252,940 In November 2022, the Company issued 1,599,150 For each financing, the Company has accounted for the warrants in accordance with ASC Topic 815 Derivatives and Hedging. The warrants are considered derivative instruments as they were issued in a currency other than the Company’s functional currency of the U.S. 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 consolidated statement of operations and comprehensive loss as a gain or loss in the change in derivative liability line item Bunker Hill Mining Corp. Notes to Consolidated Financial Statements Years Ended December 31, 2022 and December 31, 2021 (Expressed in United States Dollars) The fair value of the warrant liabilities related to the various tranches of warrants issued during the period 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, 2022 and December 31, 2021: Schedule of Estimated Using the Binomial Model to Determine the Fair Value of Warrant Liabilities April 2022 special warrants issuance December 31, 2022 April 1, 2022 Expected life 822 1,096 Volatility 120 % 120 % Risk free interest rate 4.06 % 2.35 % Dividend yield 0 % 0 % Share price (C$) $ 0.17 $ 0.29 Fair value $ 2,406,104 $ 5,947,232 Change in derivative liability $ (3,541,128 ) $ - April 2022 non-brokered issuance December 31, 2022 April 1, 2022 Expected life 822 1,096 Volatility 120 % 120 % Risk free interest rate 4.06 % 2.35 % Dividend yield 0 % 0 % Share price (C$) $ 0.17 $ 0.29 Fair value $ 93,553 $ 186,190 Change in derivative liability $ (92,637 ) $ - May 2022 Teck issuance December 31, 2022 May 13, 2022 Expected life 864 1,096 Volatility 120 % 120 % Risk free interest rate 4.06 % 2.68 % Dividend yield 0 % 0 % Share price (C$) $ 0.17 $ 0.25 Fair value $ 684,497 $ 1,273,032 Change in derivative liability $ (588,535 ) $ - June 2022 issuance December 31, 2022 June 30, 2022 Expected life 822 1,006 Volatility 120 % 120 % Risk free interest rate 3.72 % 3.14 % Dividend yield 0 % 0 % Share price (C$) $ 0.17 $ 0.20 Fair value $ 77,429 $ 113,425 Change in derivative liability $ (35,996 ) $ - February 2021 issuance December 31, 2022 December 31, 2021 Expected life 1,136 1,501 Volatility 120 % 100 % Risk free interest rate 3.72 % 1.25 % Dividend yield 0 % 0 % Share price $ 0.17 $ 0.37 Fair value $ 1,335,990 $ 3,483,745 Change in derivative liability $ (2,147,756 ) $ - The warrant liabilities as a result of the August 2018, November 2018, June 2019, August 2019, and August 2020 private placements were revalued as at December 31, 2022 and December 31, 2021 using the Binomial model and the following assumptions: August 2020 issuance December 31, 2022 December 31, 2021 Expected life 243 608 Volatility 120 % 100 % Risk free interest rate 4.06 % 0.95 % Dividend yield 0 % 0 % Share price $ 0.17 $ 0.37 Fair value $ 903,697 $ 6,790,163 Change in derivative liability $ (5,886,466 ) $ - Bunker Hill Mining Corp. Notes to Consolidated Financial Statements Years Ended December 31, 2022 and December 31, 2021 (Expressed in United States Dollars) June 2019 issuance (i) December 31, 2022 December 31, 2021 Expected life 1,096 1,461 Volatility 120 % 100 % Risk free interest rate 3.82 % 1.02 % Dividend yield 0 % 0 % Share price $ 0.17 $ 0.37 Fair value $ 725,737 $ 2,067,493 Change in derivative liability $ (1,341,756 ) $ - (i) During the six months ended December 31, 2020, the Company amended the exercise price to C$ 0.59 per common share and extended the expiry date to December 31, 2025 for 11,660,000 warrants. August 2019 issuance (ii) December 31, 2022 December 31, 2021 Expected life 1,096 1,461 Volatility 120 % 100 % Risk free interest rate 3.82 % 1.02 % Dividend yield 0 % 0 % Share price $ 0.17 $ 0.37 Fair value $ 1,115,369 $ 3,177,485 Change in derivative liability $ (2,062,116 ) $ - (ii) During the six months ended December 31, 2020, the Company amended the exercise price to C$ 0.59 December 31, 2025 17,920,000 2,752,900 Warrants Schedule of Warrant Activity Weighted Weighted average average Number of exercise price grant date warrants (C$) value ($) Balance, December 31, 2020 95,777,806 $ 0.54 $ 0.18 Issued 19,994,080 0.60 0.19 Expired (4,359,174 ) 0.59 0.19 Balance, December 31, 2021 111,412,712 $ 0.54 $ 0.18 Issued 50,955,636 0.37 0.15 Expired (239,284 ) 0.70 0.21 Balance, December 31, 2022 162,129,064 $ 0.49 $ 0.17 During the year ended December 31, 2022, 239,284 At December 31, 2022, the following warrants were outstanding: Schedule of Warrants Outstanding Exercise Price Exercise Number of Number of warrants Expiry date price (C$) warrants exercisable August 31, 2023 0.50 58,284,148 58,284,148 December 31, 2025 0.59 32,895,200 32,895,200 February 9, 2026 0.60 17,112,500 17,112,500 February 16, 2026 0.60 2,881,580 2,881,580 April 1, 2025 0.37 40,538,969 40,538,969 May 13, 2025 0.37 10,416,667 10,416,667 162,129,064 162,129,064 Bunker Hill Mining Corp. Notes to Consolidated Financial Statements Years Ended December 31, 2022 and December 31, 2021 (Expressed in United States Dollars) Compensation options At December 31, 2022, the following compensation options were outstanding: Schedule of Compensation Options Weighted Number of average broker exercise price options (C$) Issued - August 2020 Compensation Options 3,239,907 $ 0.35 Balance, December 31, 2020 3,239,907 $ 0.35 Issued – February 2021 Compensation Options 351,000 0.40 Balance, December 31, 2021 3,590,907 0.35 Issued – April 2022 Compensation Options 1,879,892 0.30 Balance, December 31, 2022 5,470,799 $ 0.34 Schedule of Estimated Using Black-Scholes Valuation Model for Fair Value of Broker Options Grant Date Risk free interest rate Dividend yield Volatility Stock price Weighted average life August 2020 0.31 % 0 % 100 % C$ 0.35 3 February 2021 0.26 % 0 % 100 % C$ 0.40 3 April 1, 2022 2.34 % 0 % 120 % C$ 0.30 2 Schedule of Broker Exercise Prices Exercise Number of Fair value Expiry date price (C$) broker options ($) August 31, 2023 (i) $ 0.35 3,239,907 $ 521,993 February 16, 2024 (ii) $ 0.40 351,000 $ 68,078 April 1, 2024 (iii) $ 0.30 1,879,892 $ 264,435 5,470,799 $ 854,506 (i) Exercisable into one August 2020 Unit (ii) Exercisable into one February 2021 Unit (iii) Exercisable into one April 2022 Unit Bunker Hill Mining Corp. Notes to Consolidated Financial Statements Years Ended December 31, 2022 and December 31, 2021 (Expressed in United States Dollars) Stock options The following table summarizes the stock option activity during the years ended December 31, 2022 and 2021: Schedule of Stock Options Weighted average Number of exercise price stock options (C$) Balance, December 31, 2020 8,015,159 $ 0.62 Granted (i) 1,037,977 0.34 Balance, December 31, 2021 9,053,136 $ 0.58 Granted (ii) 700,000 0.15 Expired May 1, 2022 (47,500 ) 10.00 Forfeited November 25, 2022 (150,000 ) 0.15 Expired December 31, 2022 (235,500 ) 0.50 Balance, December 31, 2022 9,320,636 $ 0.51 (i) On February 19, 2021, 1,037,977 273,271 764,706 5 0.335 204,213 nil 204,213 (ii) On August 24, 2022, 300,000 150,000 5 0.15 28,930 15,594 (iii) On November 23, 2022, 400,000 200,000 5 0.15 37,387 20,191 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: Schedule of Estimated Using Black-Scholes Valuation Model for Fair value of Stock Options Risk free interest rate Dividend yield Volatility Stock price Weighted average life (i) 0.64 % 0 % 100 % C$ 0.34 5 (ii) 3.27 % 0 % 120 % C$ 0.15 5 (iii) 3.22 % 0 % 120 % C$ 0.15 5 The following table reflects the actual stock options issued and outstanding as of December 31, 2022: Schedule of Actual Stock Options Issued and Outstanding Number of remaining Number of options Exercise contractual options vested Grant date price (C$) life (years) outstanding (exercisable) fair value ($) 0.60 0.75 200,000 200,000 52,909 0.60 1.82 1,575,000 1,575,000 435,069 0.55 2.30 5,957,659 2,978,830 1,536,764 0.335 3.14 1,037,977 1,037,977 204,213 0.15 0.90 150,000 150,000 14,465 0.15 4.90 400,000 200,000 37,387 9,320,636 6,141,807 $ 2,280,807 Bunker Hill Mining Corp. Notes to Consolidated Financial Statements Years Ended December 31, 2022 and December 31, 2021 (Expressed in United States Dollars) |