Bunker Hill Mining (TSX: BNKR; US-OTC: BHLL) has agreed to acquire Silver47 Exploration (TSX-V: AGA; US-OTC: AAGA) in an all-stock transaction valued at approximately $163 million (C$225 million), the companies announced on Friday, creating a U.S.-focused producer with four silver projects.

Under the terms of the deal, Silver47 shareholders will receive 0.1724 Bunker Hill common shares for each share held. The offer represents a 38% premium to Silver47's Thursday closing price and about a 30% premium to its 20-day volume-weighted average price.

"As Bunker Hill advances towards commercial production targeted in the fourth quarter of 2026, we are very excited to partner with Silver47," Bunker Hill executive 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."

The messaging lands amid a broader push in Washington to rebuild domestic mineral supply chains, an effort that gained momentum in 2025 when the U.S. Geological Survey proposed adding silver to its critical minerals list — a designation the government applies to metals it views as essential to economic and national security.

The transaction pairs Bunker Hill's namesake mine in Idaho's Silver Valley — a past producer that ran for roughly a century before closing in 1981, within one of the world's most prolific silver districts — with Silver47's exploration and development portfolio spanning Alaska, Nevada and New Mexico, anchored by its flagship Red Mountain project in Alaska. It comes as Bunker Hill works towards commercial production later this year, while Silver47 shares remain under pressure, having fallen nearly 36% since the start of 2026.

Combined company

The combined company will be named Bunker Hill Silver, with existing Bunker Hill shareholders owning 57% and Silver47 investors holding the remaining 43%.

Silver47 executive chairman Gary Thompson said combining Silver47's exploration portfolio and capabilities with Bunker Hill's mine-building and operating track record will provide a strong foundation for the growth-focused company.

The companies expect to complete the transaction in November, after which the combined company is expected to continue trading on the Toronto Stock Exchange.

Silver47 shares jumped 16% to 78¢ in early afternoon trading Friday in Toronto, valuing the company at about C$163 million ($116 million). The stock closed Thursday at 67¢, setting the reference price for Bunker Hill's takeover premium. Bunker Hill fell 10% to C$3.52 in Toronto, for a market capitalization of C$166 million.

New financing

Separately, Bunker Hill has secured about $11 million in new financing from existing partners as it moves towards commercial production.

The funding includes a $10-million concentrate prepayment facility with Ocean Partners UK — a structure in which a metals trader advances cash against future deliveries of mine concentrate — and a $1-million draw under Bunker Hill's standby facility with Teck.

The financing gives Bunker Hill additional capital ahead of the proposed merger, while the enlarged company positions its Idaho mine and Silver47's U.S. exploration assets as a broader domestic silver and critical minerals platform.