Bunker Hill Mining draws $4M more on mine loan
Bunker Hill Mining Corp. (BHLL) drew an additional US$4.0 million on September 16, 2026 under its concentrate prepayment facility with Ocean Partners UK Limited, increasing total borrowings under this US$10.0 million Ocean Partners Facility to US$8.0 million.
Rhea-AI Filing Summary
Bunker Hill Mining Corp. (BHLL) drew an additional US$4.0 million on September 16, 2026 under its concentrate prepayment facility with Ocean Partners UK Limited, increasing total borrowings under this US$10.0 million Ocean Partners Facility to US$8.0 million.
The new funds will be used for working capital at the Bunker Hill Mine in Idaho. Amounts outstanding under the facility bear interest at 7.0% per annum plus the three-month secured overnight financing rate, with interest accruing daily and payable monthly in arrears. During an event of default, the interest rate increases by an additional 3.0% per annum. Interest may be paid either in cash or by setoff against payments owed on concentrates.
Positive
- None.
Negative
- Debt outstanding under the Ocean Partners Facility rose to US$8.0 million, adding interest costs tied to 7.0% plus the three-month secured overnight financing rate and a possible additional 3.0% per annum in an event of default.
8-K Event Classification
2 items: 2.03, 9.01
2 items
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
New draw amount: US$4.0 million
Ocean Partners Facility size: US$10.0 million
Outstanding principal: US$8.0 million
+2 more
5 metrics
New draw amount
US$4.0 million
Second draw under the Ocean Partners Facility on September 16, 2026
Ocean Partners Facility size
US$10.0 million
Maximum concentrate prepayment facility committed by Ocean Partners UK Limited
Outstanding principal
US$8.0 million
Total principal outstanding under the Ocean Partners Facility after the second draw
Base interest margin
7.0% per annum + three-month secured overnight financing rate
Interest rate on amounts outstanding under the Ocean Partners Facility
Default rate step-up
3.0% per annum
Additional interest charged during an event of default under the facility
Key Terms
concentrate prepayment facility, secured overnight financing rate, event of default
3 terms
concentrate prepayment facility financial
"provide the Company with a concentrate prepayment facility of up to US$10.0 million"
secured overnight financing rate financial
"7.0% per annum plus the three-month secured overnight financing rate as published"
A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Think of it as the market price to “rent” cash for a day with a very safe pledge, similar to paying a short-term rental fee for money backed by government bonds. Investors track SOFR because it underpins pricing for loans, bonds and derivatives, so movements change borrowing costs, interest income and the valuation of interest-rate–linked positions.
event of default financial
"During an event of default, the applicable interest rate increases by an additional"
An event of default is a specific breach of a loan or bond agreement—such as missed payments or breaking agreed rules—that gives lenders the legal right to act, for example by demanding immediate repayment, seizing collateral, or accelerating other obligations. For investors, it’s a red flag because it can sharply reduce a company’s ability to operate or raise money, like a car lender repossessing a vehicle after missed payments, and often leads to falling share or bond prices.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What new borrowing did Bunker Hill Mining Corp. (BHLL) disclose?
Bunker Hill Mining Corp. drew US$4.0 million on September 16, 2026 under its Ocean Partners concentrate prepayment facility, bringing total outstanding principal under that facility to US$8.0 million.
What is the total capacity of BHLL’s Ocean Partners Facility?
Ocean Partners UK Limited agreed to provide Bunker Hill Mining Corp. with a concentrate prepayment facility of up to US$10.0 million. After the September 16, 2026 draw, US$8.0 million is outstanding under this facility.
How will BHLL use the new US$4.0 million draw?
The company states that the US$4.0 million draw will be used for working capital at the Bunker Hill Mine in Idaho, supporting ongoing operational needs at that site.
What interest rate applies to BHLL’s Ocean Partners Facility?
Amounts outstanding under the Ocean Partners Facility bear interest at 7.0% per annum plus the three-month secured overnight financing rate. Interest accrues daily and is payable monthly in arrears on the first business day of the next month.
What happens to BHLL’s interest rate under the facility if there is an event of default?
During an event of default, the applicable interest rate under the Ocean Partners Facility increases by an additional 3.0% per annum, computed on the basis of a 360-day year, raising the company’s borrowing cost.
How can BHLL pay interest on the Ocean Partners Facility?
Bunker Hill Mining Corp. may pay interest either in cash or by setoff against any payments owed on concentrates under the Ocean Partners arrangement.
AI-generated analysis. How Rhea-AI works. Not financial advice.
