KELLOGG — Bunker Hill Mining Corp. and Silver47 Exploration Corp. have announced plans to merge, according to a release published by Bunker Hill on Friday. The deal brings together Bunker Hill's recently reopened Kellogg mine and Silver47's mineral properties across several western states.  

Executives say the merger would create a larger U.S. mining company with interests in silver and minerals used in a range of industrial and manufacturing applications. 

Under the agreement, signed Aug. 20, Bunker Hill will acquire Silver47 through an all-share transaction, meaning Silver47 shareholders will receive Bunker Hill stock rather than cash for their shares. Once the deal is completed, the company intends to operate under the name Bunker Hill Silver Corp. while maintaining its listing on the Toronto Stock Exchange. 

Silver47 investors will receive 0.1724 Bunker Hill shares for each share they own. If the transaction is approved, existing Bunker Hill shareholders would hold about 57% of the combined company, while former Silver47 shareholders would own the remaining 43%. 

Using Bunker Hill's closing stock price on Aug. 20, the transaction values Silver47 shares at approximately 67 cents apiece. Company officials said that represents a roughly 38% premium over Silver47's closing share price that day. 

"As Bunker Hill advances towards commercial production targeted in the fourth quarter of 2026, we are very excited to partner with Silver47 to add depth to our leadership team, strengthen the balance sheet and add silver and critical metals potential to an exclusively U.S.-based project portfolio," Bunker Hill Chairman Richard Williams said. "This is a ‘Made in America’ transaction at a time when the U.S. domestic mining industry, its investors and the users of U.S. metals need new, ambitious leaders capable of safely building and operating profitable mines as well as conducting highly prospective exploration and other strategic acquisitions." 

The proposed merger would unite Bunker Hill's Idaho operations with Silver47's projects in Alaska, Nevada and New Mexico. Company officials said future income from the Bunker Hill Mine could be used to support exploration and development efforts at other projects owned by the combined company. 

Company officials estimate the merged business would be worth about $326 million based on current share values. The companies estimate their four U.S. projects contain a combined 388 million ounces of silver-equivalent resources. Exploration work continues at several sites, with three drilling programs currently underway. 

"The combination of the exploration portfolio and capability of Silver47 with Bunker Hill’s mine building and operational track record creates a strong foundation for this growth-focused company," Silver47 Chairman Gary Thompson said. "As the Bunker Hill Mine targets commercial production, its cash flow will provide the organic power to unlock significant value across the four U.S. sites, and secure the valuation multiples that come with scale, reliable production, and a safe and mining-friendly jurisdiction." 

Bunker Hill projects silver-equivalent production of more than 980,000 ounces in 2026, increasing to more than 2.5 million ounces the following year. Company officials say a planned expansion of milling capacity could eventually push annual production above 5 million ounces. 

Bunker Hill CEO Sam Ash said the company had been exploring a partnership with a U.S.-focused portfolio of silver and critical minerals assets and believes the merger will strengthen future growth opportunities. 

"In addition to unlocking the many upsides to our newly operational Bunker Hill Mine, such as bringing the high-grade Cate-8 discovery into the mine plan, returning the mine to its historic 50/50 silver to base metals mix and potentially expanding our throughput to 2,500 tpd (tons per day)," he said. "I know that the Bunker Hill-Silver47 combination achieves this, and I could not be more excited to partner with Galen McNamara and his team of exploration geologists to help build a new US mining champion at a critical time for our country." 

To help finance the transaction and support operations, Bunker Hill has arranged $10 million in funding through Ocean Partners UK Ltd. and accessed an additional $1 million through an existing financing agreement with Teck Resources Ltd. 

The proposed merger is modest compared to several multibillion-dollar mining deals completed in recent years, but it would create a larger U.S.-focused silver and critical minerals company at a time when domestic mineral production is receiving increased attention. 

The combined company plans to keep its operational headquarters at the Bunker Hill Mine near Kellogg.