Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2023
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 333-150028

BUNKER HILL MINING CORP.

(Exact Name of Registrant as Specified in its Charter)

nevada		32-0196442
(State of other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

82 Richmond Street East
Toronto, Ontario, Canada		M5C 1P1
(Address of Principal Executive Offices)		(Zip Code)

(416) 477-7771

(Registrant’s Telephone Number, including Area Code)

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: None

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes ☒ No ☐

Indicate by check mark whether the Registrant (1) has filed all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 (“Exchange Act”) during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

to this Form 10-Q. ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging Growth Company ☐

Indicate by check mark whether the Registrant is a shell company, as defined in Rule 12b-2 of the Exchange Act. Yes ☐ No ☒

Number of shares of Common Stock outstanding as of August 14, 2023: 317,444,482

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION	3

Item 1. Financial Statements	3

Item 2. Management’s Discussion and Analysis of Financial Condition or Plan of Operation	23

Item 3. Quantitative and Qualitative Disclosures about Market Risk	26

Item 4. Controls and Procedures	26

PART II – OTHER INFORMATION	27

Item 1. Legal Proceedings	27

Item 1A. Risk Factors	28

Item 2. Unregistered Sales of Equity Securities and Use Of Proceeds	28

Item 3. Defaults upon Senior Securities	28

Item 4. Mine Safety Disclosure	28

Item 5. Other Information	29

Item 6. Exhibits	29

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

The condensed interim consolidated financial statements of Bunker Hill Mining Corp., (“Bunker Hill”, the “Company”, or the “Registrant”) a. Nevada corporation, included herein were prepared, without audit, pursuant to rules and regulations of the Securities and Exchange Commission. Because certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.”) were condensed or omitted pursuant to such rules and regulations, these financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2022.

Bunker Hill Mining Corp.

Condensed Interim Consolidated Balance Sheets

(Expressed in United States Dollars)

Unaudited

	June 30,			December 31,
	2023			2022
ASSETS

Current assets
Cash	$	35,133,159		$	708,105
Restricted cash		6,476,000			6,476,000
Accounts receivable and prepaid expenses (note 3)		1,222,565			556,947
Total current assets		42,831,724			7,741,052

Non-current assets
Spare parts inventory		341,004			341,004
Equipment (note 4)		534,784			551,204
Right-of-use asset (note 4)		102,151			-
Long term deposit		69,015			269,015
Bunker Hill Mine and mining interests (note 5)		13,992,896			15,896,645
Process plant (note 4)		9,992,390			8,130,972
Total assets	$	67,863,964		$	32,929,892

EQUITY AND LIABILITIES

Current liabilities
Accounts payable	$	2,878,719		$	4,523,502
Accrued liabilities		644,930			1,500,164
Interest payable (note 7)		27,738			1,154,477
Derivative warrant liability (note 8)		1			903,697
Deferred share units liability (note 10)		861,066			573,742
Derivative special warrant liability (note 8)		12,845,643			-
Promissory notes payable (note 7)		1,095,253			1,500,000
Total current liabilities		18,353,350			10,155,582

Non-current liabilities
Bridge loan (note 7)		-			4,684,446
Series 1 convertible debenture (note 7)		5,812,092			5,537,360
Series 2 convertible debenture (note 7)		14,644,406			14,063,525
Stream obligation (note 7)		45,260,844			-
Royalty convertible debenture (note 7)		-			10,285,777
Environmental protection agency cost recovery liability, net of discount (note 6)		8,712,435			7,941,466
Deferred tax liability (note 12)		3,745,067			-
Derivative warrant liabilities (note 8)		7,768,394			6,438,679
Total liabilities		104,296,588			59,106,835

Shareholders’ Deficiency
Preferred shares, $0.000001 par value, 10,000,000 preferred shares authorized; Nil preferred shares issued and outstanding (note 8)		-			-
Common shares, $0.000001 par value, 1,500,000,000 common shares authorized; 265,810,755 and 229,501,661 common shares issued and outstanding, respectively (note 8)		264			228
Additional paid-in-capital (note 8)		49,538,834			45,161,513
Accumulated other comprehensive income		687,472			253,875
Accumulated deficit		(86,659,194	)		(71,592,559	)
Total shareholders’ deficiency		(36,432,624	)		(26,176,943	)
Total shareholders’ deficiency and liabilities	$	67,863,964		$	32,929,892

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

Bunker Hill Mining Corp.

Condensed Interim Consolidated Statements of (Loss) Income and Comprehensive Income

(Expressed in United States Dollars)

Unaudited

	2023			2022			2023			2022
	Three Months Ended						Six Months Ended
	June 30,						June 30
	2023			2022			2023			2022
Operating expenses
Operation and administration	$	2,003,905		$	176,892		$	2,883,897		$	436,604
Mine preparation		-			1,821,223			-			4,328,302
Legal and accounting		388,776			401,318			923,687			764,054
Consulting		944,292			1,580,429			1,714,877			3,937,576
Loss from operations		(3,336,973	)		(3,979,862	)		(5,522,461	)		(9,466,536	)

Other income or gain (expense or loss)
Interest income		231,133			-			231,133			-
Change in derivative liabilities (note 8)		(13,246,561	)		7,769,211			(9,019,987	)		11,223,219
Gain (loss) on foreign exchange		(591	)		(249,244	)		(3,479	)		(221,324	)
(Loss) gain on FV of debentures (note 7)		(1,884,232	)		1,813,456			(194,531	)		1,739,987
Gain on EPA settlement		-			8,614,103			-			8,614,103
Gain on debt settlement (note 5)		7,117,420			-			7,117,420			-
Gain on warrant settlement		-			-			214,714			-
Interest expense (note 7)		(1,388,420	)		(382,370	)		(2,713,049	)		(1,117,607	)
Debenture finance costs		-			(1,099,051	)		-			(1,166,485	)
Finance costs (note 7, 8)		(524,130	)		(455,653	)		(1,100,881	)		(455,653	)
Other income		24,439			24,191			24,439			24,191
Loss on debt modification (note 7)		(99,569	)		-			(99,569	)		-
Loss on debt settlement (note 7)		(241,557	)		-			(491,643	)		-
(Loss) income for the period pre tax	$	(13,349,041	)	$	12,054,781		$	(11,557,894	)	$	9,173,895
Deferred tax expense (note 12)		(3,508,741	)		-			(3,508,741	)		-
Net (loss) income for the period	$	(16,857,782	)	$	12,054,781		$	(15,066,635	)	$	9,173,895

Other comprehensive (loss) income, net of tax:
(loss) gain on change in FV on own credit risk		(373,415	)		371,586			433,597			371,586
Other comprehensive income		(373,415	)		371,586			433,597			371,586
Comprehensive (loss) income	$	(17,231,197	)	$	12,426,367		$	(14,633,038	)	$	9,545,481

Dilutive effect of convertible debentures		-			(836,204	)		-			(865,015	)
Dilutive effect of derivative warrant liabilities	$	-		$	-		$	-		$	-
Diluted net (loss) income and comprehensive (loss) income for the period	$	(17,231,197	)	$	11,590,163		$	(14,633,038	)	$	8,680,466

Net income (loss) per common share – basic	$	(0.07	)	$	0.06		$	(0.06	)	$	0.05
Net income (loss) per common share – fully diluted	$	(0.07	)	$	0.05		$	(0.06	)	$	0.04

Weighted average common shares – basic		258,236,840			210,586,156			247,170,167			187,638,287
Weighted average common shares – fully diluted		258,236,840			245,879,831			247,170,167			214,210,598

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

Bunker Hill Mining Corp.

Condensed Interim Consolidated Statements of Cash Flows

(Expressed in United States Dollars)

Unaudited

	Six Months			Six Months
	Ended			Ended
	June 30,			June 30,
	2023			2022
Operating activities
Net (loss) income for the period	$	(15,066,635	)	$	9,173,895
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation (note 9)		975,188			(135,128	)
Depreciation expense		89,193			129,445
Change in fair value of warrant liability		9,019,987			(11,223,219	)
Deferred tax expense (note 12)		3,508,741			-
Gain on warrant settlement		(214,714	)		-
Units issued for services		111,971			1,060,858
Interest expense on lease liability (note 7)		5,080			1,834
Financing costs		-			264,435
Foreign exchange loss (gain)		-			221,324
Foreign exchange loss (gain) on re-translation of lease		-			718
Loss on debt modification		99,569			-
Loss on debt settlement		491,643			-
loss (gain) on fair value of debentures		194,531			(1,739,987	)
Amortization of non-current liabilities		855,969			284,087
Gain on debt settlement		(7,117,420	)		-
Gain on EPA debt settlement		-			(8,614,103	)
Changes in operating assets and liabilities:
Accounts receivable and prepaid expenses		(470,181	)		(718,179	)
Accounts payable		(61,969	)		(23,224	)
Accrued liabilities		(118,577	)		465,268
Accrued EPA/IDEQ water treatment		-			(903,565	)
Prepaid finance costs		-			393,640
Deposit on plant demobilization		-			(1,000,000	)
EPA cost recovery payable		-			(2,000,000	)
Interest payable		1,041,361			766,955
Net cash used in operating activities		(6,656,263	)		(13,594,946	)

Investing activities
Additions to Bunker Hill Mine and mining interests		(514,127	)		(5,524,322	)
Land purchase		-			(202,000	)
Process plant		(3,155,362	)		(1,289,477	)
Purchase of equipment		(60,004	)		(161,558	)
Purchase of spare parts inventory		-			(341,004	)
Net cash used in investing activities		(3,729,493	)		(7,518,361	)

Financing activities
Proceeds from stream obligation		46,000,000			-
Transaction costs stream obligation		(304,156	)		-
Proceeds from convertible debentures		-			29,000,000
Proceeds from issuance of shares, net of issue costs		-			7,769,745
Proceeds from issuance of special warrants		3,661,822			-
Proceeds from warrants exercise		837,459			-
Proceeds from promissory note		390,000			-
Repayment of bridge loan		(5,000,000	)		-
Repayment of promissory notes		(654,315	)		(1,000,000	)
Lease payments		(120,000	)		(64,828	)
Net cash provided by financing activities		44,810,810			35,704,917
Net change in cash		34,425,054			14,591,610
Cash and restricted cash, beginning of period		7,184,105			486,063
Cash and restricted cash, end of period	$	41,609,159		$	15,077,673

Supplemental disclosures
Cash interest paid	$	322,708		$	-

Non-cash activities
Accounts payable, accrued liabilities, and promissory notes settled with special warrants issuance	$	874,198		$	228,421
Mill purchase for shares and warrants	$	-		$	3,243,296
Units issued to settle DSU/RSU/Bonuses	$	-		$	872,399
Interest payable settled with common shares	$	2,039,282		$	269,750

Reconciliation from Cash Flow Statement to Balance Sheet:
Cash and restricted cash end of period	$	41,609,159		$	15,077,673
Less restricted cash		6,476,000			9,476,000
Cash end of period	$	35,133,159		$	5,601,673

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

Bunker Hill Mining Corp.

Condensed Interim Consolidated Statements of Changes in Shareholders’ Deficiency

(Expressed in United States Dollars)

Unaudited

											Accumulated
					Additional			Stock			other
	Common stock				paid-in-			subscriptions			comprehensive		Accumulated
	Shares		Amount		capital			payable			income		deficit			Total

Balance, December 31, 2022		229,501,661	$	228	$	45,161,513			-		$	253,875	$	(71,592,559	)	$	(26,176,943	)
Stock-based compensation		-		-		1,050,105			-			-		-			1,050,105
Compensation options		-		-		111,971			-			-		-			111,971
Shares issued for RSUs vested		5,767,218		6		(6	)		-			-		-			-
Shares issued for warrant exercise		10,416,667		10		907,080			-			-		-			907,091
Shares issued for interest payable		20,125,209		20		2,308,171			-			-		-			2,308,191
OCI		-		-		-			-			433,597		-			433,597
Net income (loss) for the period		-		-		-			-			-		(15,066,635	)		(15,066,635	)
Balance, June 30, 2023		265,810,755	$	264	$	49,538,834		$	-		$	687,472	$	(86,659,194	)	$	(36,432,624	)

Balance, December 31, 2021		164,435,829	$	164	$	38,248,618		$	-		$	-	$	(72,491,150	)	$	(34,242,368	)
Stock-based compensation		-		-		161,107			-			-		-			161,107
Compensation options		-		-		264,435			-			-		-			264,435
Shares issued for interest payable		1,315,856		1		269,749			-			-		-			269,750
Shares issued for RSUs vested		933,750		1		(1	)		-			-		-			-
Non brokered shares issued for $0.30 CAD		1,471,664		1		352,854			-			-		-			352,855
Stock subscription received for units		-		-		-			1,775,790			-					1,775,790
Special warrant shares issued for $0.30 CAD		37,849,325		38		9,083,719			(1,775,790	)		-		-			7,307,967
Contractor shares issued for $0.30 CAD		1,218,000		1		289,999			-			-		-			290,000
Shares issued for Mill purchase		10,416,667		10		1,970,254			-			-		-			1,970,264
Issue costs		-		-		(896,009	)		-			-		-			(896,009	)
Warrant valuation		-		-		(6,246,848	)		-			-		-			(6,246,848	)
OCI		-		-		-			-			371,586		-			371,586
Net income (loss) for the period		-		-		-			-			-		9,173,895			9,173,895
Net income (loss)		-		-		-			-			-		9,173,895			9,173,895
Balance, June 30, 2022		217,641,091	$	216	$	43,497,877		$	-		$	371,586	$	(63,317,255	)	$	(19,447,576	)
Balance		217,641,091	$	216	$	43,497,877		$	-		$	371,586	$	(63,317,255	)	$	(19,447,576	)

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

Bunker Hill Mining Corp.

Notes to the Condensed Interim Consolidated Financial Statements (Unaudited)

Three and Six Months Ended June 30, 2023

(Expressed in United States Dollars)

1. Nature and Continuance of Operations

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 Company’s registered office is located at 1802 N. Carson Street, Suite 212, Carson City, Nevada 89701, and its head office is located at 82 Richmond Street East, Toronto, Ontario, Canada, M5C 1P1. As of the date of this Form 10-Q, the Company had one subsidiary, Silver Valley Metals Corp. (formerly American Zinc Corp.), an Idaho corporation created to facilitate the work being conducted at the Bunker Hill Mine in Kellogg, Idaho.

The Company was incorporated for the purpose of engaging in mineral exploration, and exploitation activities. It continues to work at developing its project with a view towards putting it into production.

2. Significant Accounting Policies:

Basis of Presentation

The accompanying unaudited condensed interim consolidated financial statements of the Company 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’ deficiency, 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 Company’s Annual Report on Form 10-K, which contains the annual audited consolidated financial statements and notes thereto, together with the Management’s Discussion and Analysis, for the year ended December 31, 2022. The interim results for the period ended June 30, 2023, are not necessarily indicative of the results for the full fiscal year. The unaudited interim condensed consolidated financial statements are presented in United States dollars, which is the Company’s functional currency.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes for items such as mineral reserves, useful lives and depreciation methods, potential impairment of long-lived assets, sale of mineral properties for the accounting of the conversion of the royalty convertible debenture (the “RCD”), deferred income taxes, settlement pricing of commodity sales, fair value of stock based compensation, accrued liabilities, estimation of asset retirement obligations and reclamation liabilities, convertible debentures, stream obligation, and warrants. Estimates are based on historical experience and various other assumptions that the Company believes to be reasonable. Actual results could differ from those estimates.

3. Accounts receivable and prepaid expenses

Accounts receivable and prepaid expenses consists of the following:

	June 30,		December 31,
	2023		2022

Prepaid expenses and deposits	$	1,162,565	$	386,218
Environment protection agency overpayment (note 6)		60,000		170,729
Total	$	1,222,565	$	556,947

4. Equipment, Right-of-Use asset, and Process Plant

Equipment consists of the following:

Schedule of Equipment

	June 30,			December 31,
	2023			2022

Equipment	$	980,575		$	920,571
Equipment, gross		980,575			920,571
Less accumulated depreciation		(445,791	)		(369,367	)
Equipment, net	$	534,784		$	551,204

The total depreciation expense relating to equipment during the three and six months ended June 30, 2023, was $31,732 and $76,424, respectively. Compared to the three and six months ended June 30, 2022, was $38,692 and $77,091, respectively.

Process Plant

On May 13, 2022, the Company completed the purchase of a package of equipment and parts inventory from Teck Resources Limited’s (“Teck”) Pend Oreille operation. The package comprises substantially all the mineral processing equipment including complete crushing, grinding and flotation circuits suitable for a planned ~1,500 ton-per-day operation at the Bunker Hill site, and total inventory of components and parts for the mill, assay lab, conveyer, field instruments, and electrical spares.

The purchase of the mill has been valued at:

	-	Cash consideration given, comprised of $500,000 non-refundable deposit remitted on January 7, 2022 and $231,000 sales tax remitted on May 13, 2022, a total of $731,000 cash remitted.
	-	Value of common shares issued on May 13, 2022 at the market price of that day, a value of $1,970,264.
	-	Fair value of the warrants issued together with the inputs, as determined by a binomial model, resulted in a fair value of $1,273,032. See note 9.
	-	As a result, the total value of the mill at the time of purchase was determined to be $3,974,296, including $341,004 of spare parts inventory.

The process plant was purchased in an assembled state, and included major processing systems, significant components, and a large inventory of spare parts. The Company has disassembled and transported it to the Bunker Hill site, and will be reassembling it as an integral part of the Company’s future operations. The Company determined that the transaction should be accounted for as an asset acquisition, with the process plant representing a single asset, with the exception of the inventory of spare parts, which has been separated out and appears on the balance sheets as a non-current asset in accordance with the purchase price allocation. As the plant is demobilized, transported and reassembled, installation and other costs associated with these activities will be captured and capitalized as components of the asset.

Process plant consists of the following:

Schedule of Plant Asset Consists

	June 30,		December 31,
	2023		2022

Plant purchase price less inventory	$	3,633,292	$	3,633,292
Ball mill purchase		745,626		-
Demobilization		2,204,539		2,201,414
Site preparation costs		3,408,933		2,296,266
Process Plant	$	9,992,390	$	8,130,972

On June 30, 2023, the Company made the final payment of $545,626 to D’Angelo International LLC to complete the purchase of a ball mill for a total $745,626 (inclusive of two previously paid deposits of $100,000 from the Company to D’Angelo International LLC). The ball mill is capable of delivering the 1,800 ton per day mine plan envisaged in the Company’s Prefeasibility Study, and subject to future detailed engineering and mine planning, the mill could also potentially support a throughput increase.

Right-of-use asset consists of the following:

Schedule of Right-of-use Asset

	June 30,			December 31,
	2023			2022

Loader lease		114,920			-
Loader accumulated depreciation		(12,769	)		-
Right-of-use asset, net	$	102,151		$	-

The total depreciation expense during the three and six months ended June 30, 2023, was $6,385 and $12,769, respectively. Compared to the three and six months ended June 30, 2022, was $24,442 and $52,353, (relating to an expired lease) respectively.

5. Bunker Hill Mine and Mining Interests

Bunker Hill Mine Purchase

The Company purchased the Bunker Hill Mine (the “Mine”) in January 2022, as described below.

Prior to purchasing the Mine, the Company had entered into a series of agreements with Placer Mining Corporation (“Placer Mining”), the prior owner, for the lease and option to purchase the Mine. The first of these agreements was announced on August 28, 2017, with subsequent amendments and/or extensions announced on November 1, 2019, July 7, 2020, and November 20, 2020.

Under the terms of the November 20, 2020, amended agreement (the “Amended Agreement”), a purchase price of $7,700,000 was agreed, with $5,700,000 payable in cash (with an aggregate of $300,000 to be credited toward the purchase price of the Mine as having been previously paid by the Company) and $2,000,000 in Common Shares of the Company. The Company agreed to make an advance payment of $2,000,000, credited towards the purchase price of the Mine, which had the effect of decreasing the remaining amount payable to purchase the Mine to an aggregate of $3,400,000 payable in cash and $2,000,000 in Common Shares of the Company.

The Amended Agreement also required payments pursuant to an agreement with the Environmental Protection Agency (“EPA”) whereby for so long as the Company leases, owns and/or occupies the Mine, the Company would make payments to the EPA on behalf of Placer Mining in satisfaction of the EPA’s claim for historical water treatment cost recovery as per the Settlement Agreement reached with the EPA in 2018. Immediately prior to the purchase of the Mine, the Company’s liability to EPA in this regard totaled $11,000,000.

The Company completed the purchase of the Mine on January 7, 2022. The terms of the purchase price were modified to $5,400,000 in cash, from $3,400,000 of cash and $2,000,000 of Common Shares. Concurrent with the purchase of the Mine, the Company assumed incremental liabilities of $8,000,000 to the EPA, consistent with the terms of the amended Settlement Agreement with the EPA that was executed in December 2021 (see “EPA Settlement Agreement” section below).

The $5,400,000 contract cash paid at purchase was the $7,700,000 less the $2,000,000 deposit and $300,000 credit given by the seller for prior years’ maintenance payments.

The purchase of the mine has been valued on January 7, 2022:

	-	Contract purchase price of $7,700,000 less $300,000 credit by seller for prior maintenance payments.
	-	Net present value of water treatment cost recovery liability assumed of $6,402,425.
	-	Capitalized legal and closing costs of $444,785.
	-	As a result, the total value of the mine at the time of purchase was determined to be $14,247,210. The Company completed the purchase of the Mine on January 7, 2022. The terms of the purchase price were modified to $5,400,000 in cash, from $3,400,000 of cash and $2,000,000 of Common Shares. Concurrent with the purchase of the Mine, the Company assumed incremental liabilities of $8,000,000 to the EPA, consistent with the terms of the amended Settlement Agreement with the EPA that was executed in December 2021 (see “EPA Settlement Agreement” section below).

Management has determined the purchase to be an acquisition of a single asset.

Capitalized Development

Commencing on October 1, 2022, the Company capitalizes mine development. Through June 30, 2023, a total of $1,517,526 had been capitalized.

Sale of Mineral Properties

On June 23, 2023, as consideration for the extinguishment of the RCD, as described in note 7, the Company granted a royalty for 1.85% of life-of-mine gross revenue (the “Royalty”) from mining claims considered to be historically worked, contiguous to current accessible underground development, and covered by the Company’s 2021 ground geophysical survey. A 1.35% rate will apply to claims outside of these areas.

This transaction is treated as a sale of mineral interest to Sprott. The portion of the mineral interest sold was determined based on an analysis of discounted life-of-mine royalty payments relative to discounted future cash flows generated from the mine net of capital and operating costs, applied to the carrying value of the Bunker Hill Mine as of June 23, 2023 before consideration of the sale of mineral properties. This analysis utilized a discount rate of 13% and long-term metal prices of $1.09/lb, $0.98/lb and $25.51/oz for zinc, lead and silver respectively, consistent with assumptions utilized in the valuation of the RCD at extinguishment. The Company has recognized a gain of $6,980,932 in the condensed interim consolidated condensed interim consolidated statements of (loss) income and comprehensive income.

The carrying cost of the Mine is comprised of the following:

Schedule of Mining Interests

	June 30,			December 31,
	2023			2022

Bunker Hill Mine purchase	$	14,247,210		$	14,247,210
Capitalized development		1,517,526			1,447,435
Sale of mineral properties (royalty)		(1,973,840	)		-
Bunker Hill mine	$	13,790,896		$	15,694,645

Land purchase and lease

On March 3, 2022, the Company purchased a 225-acre surface land parcel for $202,000 which includes the surface rights to portions of 24 patented mining claims, for which the Company already owns the mineral rights.

During the six months ended June 30, 2023, the Company entered into a lease agreement with C & E Tree Farm LLC for the lease of a land parcel overlaying a portion of the Company’s existing mineral claims package. The Company is committed to making monthly payments of $10,000 through February 2026. The Company has the option to purchase the land parcel through March 1, 2026, for $3,129,500 less 50% of the payments made through the date of purchase.

6. Environmental Protection Agency and Water Treatment Liabilities (“EPA”)

Historical Cost Recovery Payables - EPA

As a part of the lease of the Mine with Placer Mining the Company was required to make payments pursuant to an agreement with the EPA whereby for so long as the Company leases, owns and/or occupies the Mine, it was required to make payments to the EPA on behalf of Placer Mining in satisfaction of the EPA’s claim for cost recovery related to historical treatment costs paid by the EPA from 1995 to 2017. These payments, if all are made, will total $20,000,000. The agreement called for payments starting with $1,000,000 30 days after an agreement was signed (which payment was made) followed by $2,000,000 on November 1, 2018, and $3,000,000 on each of the next five anniversaries with a final $2,000,000 payment on November 1, 2024. The November 1, 2018, November 1, 2019, November 1, 2020, and November 1, 2021, payments were not made. As a result, a total of $11,000,000 was outstanding as of December 31, 2021, accounted for within current liabilities. As the purchase of the Bunker Hill Mine (which would trigger the immediate recognition of the remaining liabilities due through November 1, 2024) had not yet taken place, the remaining $8,000,000 cost recovery liabilities were not recognized on the Company’s consolidated balance sheets as of December 31, 2021.

Prior to the purchase of the Mine, the Company engaged in discussions with the EPA to reschedule these payments in ways that enable the sustainable operation of the Mine as a viable long-term business.

Effective December 19, 2021, the Company entered into an amended Settlement Agreement between the Company, Idaho Department of Environmental Quality, US Department of Justice, and the EPA (the “Amended Settlement”). Upon the effectivity of the Amended Settlement, the Company would become fully compliant with its payment obligations to these parties. The Amended Settlement modified the payment schedule and payment terms for recovery of the historical environmental costs. Pursuant to the terms of the Amended Settlement, upon purchase of the Bunker Hill Mine and the satisfaction of financial assurance commitments (as described below), the $19,000,000 of cost recovery liabilities will be paid by the Company to the EPA on the following dates:

Date	Amount
Within 30 days of Settlement Agreement	$	2,000,000
November 1, 2024	$	3,000,000
November 1, 2025	$	3,000,000
November 1, 2026	$	3,000,000
November 1, 2027	$	3,000,000
November 1, 2028	$	3,000,000
November 1, 2029		$ 2,000,000 plus accrued interest

In addition to the changes in payment terms and schedule, the Amended Settlement included a commitment by the Company to secure $17,000,000 of financial assurance in the form of performance bonds or letters of credit deemed acceptable to the EPA within 180 days from the effective date of the Amended Settlement. Once in place, the financial assurance can be drawn on by the EPA in the event of non-performance by the Company of its payment obligations under the Amended Settlement (the “Financial Assurance”). The amount of the bonds will decrease over time as individual payments are made.

The Company completed the purchase of the Mine (see note 5) and made the initial $2,000,000 cost recovery payment on January 7, 2022. Concurrent with the purchase of the Mine, the Company assumed the balance of the EPA liability totaling $17,000,000, an increase of $8,000,000. This was capitalized as $6,402,425 to the carrying value of the Bunker Hill Mine at time of purchase, comprised of $3,000,000 of incremental current liabilities and $5,000,000 of non-current liabilities (discounted to $3,402,425). See note 5.

During the year ended 2022, the financial assurance was put into place, enabling the restructuring of the payment under the Amendment Settlement with the entire $17,000,000 liability being recognized as long-term. As of June 30, 2023 (unchanged from December 31, 2022), the Company had two payment bonds of $9,999,000 and $5,000,000, and a $2,001,000 letter of credit, in place to secure this liability. The collateral for the payment bonds is comprised of two letters of credit of $4,475,000 in aggregate, as well as land pledged by third parties with whom the company has entered into a financing cooperation agreement that contemplates a monthly fee of $20,000 (payable in cash or common shares of the Company, at the Company’s election). The letters of credit of $6,476,000 in aggregate are secured by cash deposits under an agreement with a commercial bank, which comprise the $6,476,000 of restricted cash shown within current assets as of June 30, 2023.

The Company recorded accretion expense on the liability of $396,663 and $770,969 for the three and six months ended June 30, 2023, respectively, bringing the net liability to $8,712,435 (previously accrued interest of $154,743) as of June 30, 2023.

Water Treatment Charges – Idaho Department of Environmental Quality

Separate to the cost recovery liability outlined above, the Company is responsible for the payment of ongoing water treatment charges. Water treatment charges incurred through December 31, 2021, were payable to the EPA, and charges thereafter are payable to the Idaho Department of Environmental Quality (“IDEQ”) following a handover of responsibilities for the Central Treatment Plant from the EPA to the IDEQ as of that date.

The Company currently makes monthly payments of $100,000 to the IDEQ as instalments toward the cost of treating water at the Central Treatment Plant. Upon receipt of an invoice from the IDEQ for actual costs incurred, a reconciliation is performed relative to payments made, with an additional payment made or refund received as applicable. The Company accrues $100,000 per month based on its estimate of the monthly cost of water treatment. As of June 30, 2023, a prepaid expense of $60,000 (December 31, 2022: $170,729) represents the difference between the estimated cost of water treatment and net payments made by the Company to the IDEQ to date. This balance has been recognized on the condensed interim balance sheets as accounts receivable and prepaid expenses.

7. Promissory Notes Payable and Convertible Debentures

Promissory Notes

On September 22, 2021, the Company issued a non-convertible promissory note of $2,500,000 bearing interest of 15% per annum and payable at maturity. The Company purchased a land parcel for approximately $202,000 on March 3, 2022, which may be used as security for the promissory note. The promissory note was originally scheduled to mature on March 15, 2022, however, was extended multiple times and is currently due on December 31, 2023. Principal payments of $1,000,000 in aggregate were made in the year ended December 31, 2022. Principal payment of $504,315 was made during the 6 months ended June 30, 2023. The Company incurred a one-time penalty of 10% of the outstanding principal on June 30, 2023, of $99,569 which is included in loss on modification of debt in the condensed interim consolidated statements of income.

On February 21, 2023, the Company issued a non-convertible promissory note to a related party of $120,000, and a separate non-convertible promissory note of $120,000 to another party. Each promissory note bore fixed interest of $18,000 per annum, payable at maturity, which was the earlier of one year or the receipt of an equity or debt financing. Both promissory notes, including interest, were settled on March 27, 2023.

In June 2023, the Company issued a non-convertible promissory note in the amount of $150,000. The promissory note bore fixed interest of $15,000 per annum, payable at maturity, which was the earlier of one year or the receipt of an equity or debt financing. The promissory note, including interest, was settled in June 2023.

At June 30, 2023, the Company owes $1,095,253 in promissory notes payable, which is included in current liabilities on the condensed interim consolidated balance sheets. Interest expense for the three and six months ended June 30, 2023, was $54,931 and $110,411 respectively. Compared to the three and six months ended June 30, 2022, was $92,466 and $167,877 respectively. At June 30, 2023 financing costs of $3,151 ($384,041 at December 31, 2022) is included in interest payable on the condensed interim balance sheet. The effective interest rate of the promissory note is 15%.

Project Finance Package with Sprott Private Resource Streaming & Royalty Corp. (“SRSR”)

On December 20, 2021, the Company executed a non-binding term sheet outlining a $50,000,000 project finance package with SRSR.

The non-binding term sheet with SRSR outlined a $50,000,000 project financing package that the Company expected to fulfill the majority of its funding requirements to restart the Mine. The term sheet consisted of an $8,000,000 royalty convertible debenture (the “RCD”), a $5,000,000 convertible debenture (the “CD1”), and a multi-metals Stream of up to $37,000,000. The CD1 was subsequently increased to $6,000,000, increasing the project financing package to $51,000,000.

On June 17, 2022, the Company consummated a new $15,000,000 convertible debenture (the “CD2”). As a result, total potential funding from SRSR was further increased to $66,000,000 including the RCD, CD1, CD2 and the Stream (together, the “Project Financing Package”).

On May 23, 2023, the Company announced an upsized and improved $67,000,000 project finance package with SRSR, consisting of a $46,000,000 stream and a $21,000,000 new debt facility. The newly proposed $46,000,000 stream (the “Stream”) was envisaged to have the same economic terms as the previously proposed $37,000,000 stream, with a $9,000,000 increase in gross proceeds received by the Company, resulting in a lower cost of capital for the Company. The Company also announced a new $21,000,000 new debt facility (the “Debt Facility”), available for draw at the Company’s election for two years. As a result, total funding commitments from SRSR was envisaged to increase to $96,000,000 including the RCD, CD1, CD2, Stream and debt facility (together, the “Project Financing Package”). The Bridge Loan, as previously envisaged, was to be repaid from the proceeds of the Stream. The parties also agreed to extend the maturities of the CD1 and CD2 to March 31, 2026, when the full $6 million and $15 million, respectively, will become due.

On June 23, 2023, the Project Financing Package and related transactions closed, consistent with the Company’s announcement of May 23, 2023. The Company incurred $254,220 of financing costs on the condensed interim consolidated statements of (loss) income and comprehensive income relating to the modification of CD1, CD2, the extinguishment of RCD and the closing of the $21,000,000 debt facility.

$8,000,000 Royalty Convertible Debenture

The Company closed the $8,000,000 RCD on January 7, 2022. The RCD bears interest at an annual rate of 9.0%, payable in cash or Common Shares at the Company’s option, until such time that SRSR elects to convert a royalty, with such conversion option expiring at the earlier of advancement of the Stream or July 7, 2023 (subsequently amended as described below). In the event of conversion, the RCD will cease to exist and the Company will grant a royalty for 1.85% of life-of-mine gross revenue from mining claims considered to be historically worked, contiguous to current accessible underground development, and covered by the Company’s 2021 ground geophysical survey (the “SRSR Royalty”). A 1.35% rate will apply to claims outside of these areas. The RCD was initially secured by a share pledge of the Company’s operating subsidiary, Silver Valley, until a full security package was put in place concurrent with the consummation of the CD1. In the event of non-conversion, the principal of the RCD will be repayable in cash.

Concurrent with the funding of the CD2 in June 2022, the Company and SRSR agreed to a number of amendments to the terms of the RCD, including an amendment of the maturity date from July 7, 2023 to March 31, 2025. The parties also agreed to enter into a Royalty Put Option such that in the event the RCD is converted into a royalty as described above, the holder of the royalty will be entitled to resell the royalty to the Company for $8,000,000 upon default under the CD1 or CD2 until such time that the CD1 and CD2 are paid in full. The Company determined that the amendments in the terms of the RCD should not be treated as an extinguishment of the RCD, and have therefore been accounted for as a modification.

On June 23, 2023, the funding date of the Stream, the RCD was repaid by the Company granting a royalty for 1.85% of life-of-mine gross revenue (the “Royalty”) from mining claims historically worked as described above. A 1.35% rate will apply to claims outside of these areas. The Company recorded a gain on sale of mineral properties of $6,980,932 in the condensed interim consolidated statements of income (loss). Additionally, on settlement of the RCD, $347,499 of previously deferred to other comprehensive income was recognized in the net income (loss on FV of convertible debentures) on the condensed interim consolidated statement of income (loss). The Royalty Put Option permits SRSR Streaming to resell the royalty to the Company for $8 million upon default under the Series 1 Convertible Debentures or Series 2 Convertible Debentures until such time that they are repaid in full. The Company has accounted for the Royalty as a sale of mineral properties (refer to Note 5 for further detail).

$6,000,000 Convertible Debenture (CD1)

The Company closed the $6,000,000 CD1 on January 28, 2022, which was increased from the previously announced $5,000,000. The CD1 bears interest at an annual rate of 7.5%, payable in cash or shares at the Company’s option, and initially had a maturity date of the earlier of July 7, 2023 (subsequently amended, as described below) or the closing of the $37,000,000 stream that was announced on December 20, 2021. The CD1 is secured by a pledge of the Company’s properties and assets, and is convertible into Common Shares at a price of C$0.30 per Common Share at SRSR’s election at any time through the maturity date. The Company may elect to repay the CD1 early; if SRSR elects not to exercise its conversion option at such time, a minimum of 12 months of interest would apply.

Concurrent with the funding of the CD2 in June 2022, the Company and SRSR agreed to a number of amendments to the terms of the CD1, including that the maturity date would be amended from July 7, 2023 to March 31, 2025, and that the CD1 would remain outstanding until the new maturity date regardless of whether the stream is advanced, unless the Company elects to exercise its option of early repayment or SRSR elects to exercise its share conversion option. The Company determined that the amendments in the terms of the CD1 should not be treated as an extinguishment of the CD1, and have therefore been accounted for as a modification.

Concurrent with the funding of the Stream in June 2023, the Company and SRSR agreed to amend the maturity date of CD1 from March 31, 2025, to March 31, 2026, and that CD1 would remain outstanding until the new maturity date unless the company elects to exercise its option of early repayment. The Company determined that the amendments to the terms of the CD1 should not be treated as an extinguishment of the CD1 and have therefore been accounted for as a modification.

$15,000,000 Series 2 Convertible Debenture (CD2)

The Company closed the $15,000,000 CD2 on June 17, 2022. The CD2 bears interest at an annual rate of 10.5%, payable in cash or shares at the Company’s option, and matured on March 31, 2025. The CD2 is secured by a pledge of the Company’s properties and assets, and is convertible into Common Shares at a price of C$0.29 per Common Share at SRSR’s election at any time through the maturity date. The repayment terms include 3 quarterly payments of $2,000,000 each beginning June 30, 2024, and $9,000,000 on the maturity date.

Concurrent with the funding of the Stream in June 2023, the Company and SRSR agreed to amend the maturity date of the CD2 from 3 quarterly payments of $2,000,000 each beginning June 30, 2024, and $9,000,000 on March 31, 2025, to payment in full on March 31, 2026, and that the CD2 would remain outstanding until the new maturity date unless the company elects to exercise its option of early repayment or SRSR elects to exercise its share conversion option. The Company determined that the amendments to the terms of the CD2 should not be treated as an extinguishment of the CD2 and have therefore been accounted for as a modification.

The Company determined that in accordance with ASC 815 derivatives and hedging, each debenture will be valued and carried as a single instrument, with the periodic changes to fair value accounted through earnings, profit and loss.

Consistent with the approach above, the following table summarizes the key valuation inputs as at applicable valuation dates:

Schedule of Key Valuation Inputs


Reference (2)(4) (5)		Valuation date	Maturity date	Contractual Interest rate			Stock price (US$)		Expected equity volatility			Credit spread			Risk-free rate			Risk- adjusted rate
CD1 note(3)	(2)(4)(5)(3)	12-31-22	03-31-25		7.50	%		0.125		120	%		7.08	%		4.32	%		17.85	%
RCD note	(2)(4)(5)	12-31-22	03-31-25		9.00	%		0.125		120	%		7.08	%		4.32	%		17.85	%
CD2 note(3)	(2)(4)(5)(3)	12-31-22	03-31-25		10.50	%		0.125		120	%		7.08	%		4.32	%		19.76	%
CD1 note(3)	(2)(4)(5)(3)	03-31-23	03-31-25		7.50	%		0.082		115	%		11.22	%		4.06	%		21.33	%
RCD note(5)	(2)(4)(5)	03-31-23	03-31-25		9.00	%		0.082		115	%		11.22	%		4.06	%		21.33	%
CD2 note(3)	(2)(4)(5)(3)	03-31-23	03-31-25		10.50	%		0.082		115	%		11.22	%		4.06	%		23.20	%
RCD note	(2)(4)(5)	06-23-23	03-31-25		9.00	%		0.169		120	%		8.28	%		4.83	%		19.37	%
CD1 note(3)	(2)(4)(5)(3)	06-30-23	03-31-26		7.50	%		0.186		120	%		7.93	%		4.58	%		18.83	%
CD2 note(3)	(2)(4)(5)(3)	06-30-23	03-31-26		10.50	%		0.186		120	%		7.93	%		4.58	%		20.73	%

	(1)	The CD1 carried a Discount for Lack of Marketability (“DLOM”) of 5.0% as of the issuance date and as of June 30, 2023. The CD2 carried a DLOM of 10.0% as of the issuance date and June 30, 2023
	(2)	CD1 and RCD carry an instrument-specific spread of 7.23%, CD2 carries an instrument-specific spread of 9.32%
	(3)	The conversion price of the CD1 is $0.219 and CD2 is $0.226 as of June 30, 2023, and $0.219 and CD2 is $0.212 as of December 31, 2022
	(4)	A project risk rate of 13.0% was used for all scenarios of the RCD fair value computations
	(5)	The valuation of the RCD is driven by the aggregation of (i) the present value of future potential cash flow to the royalty holder, in the event that the RCD is converted to a royalty, utilizing an estimate of future metal sales and Monte Carlo simulations of future metal prices, and (ii) the computation of the present value assuming no conversion to the 1.85% gross revenue royalty. The valuation of (i) is compared to the valuation of (ii) for each simulation, with the higher value used in the aggregation to arrive at the fair value of the RCD. This results in an implied probability of the RCD being converted to the royalty, in the event that the Stream is advanced. Based on this methodology, as of June 30, 2023 (pre-modification), the implied probability of the RCD being converted to a 1.85% royalty, in the event that the Stream is advanced, was 77%. Credit spread, Risk-free rate, and Risk-adjusted rate shown for the RCD are applicable to the scenario where the Stream is not advanced. There are immaterial differences in these inputs for the scenario where the Stream is advanced.

The resulting fair values of the CD1, RCD, and CD2 at June 30, 2023, and as of December 31, 2022, were as follows:

Instrument Description	June 30, 2023		December 31, 2022
CD1	$	5,812,092	$	5,537,360
RCD		-		10,285,777
CD2		14,644,406		14,063,525
Total	$	20,456,498	$	29,886,662

The total (loss) gain on fair value of debentures recognized during the three and six months ended June 30, 2023 was ($1,884,232) and ($194,531), respectively, and $1,813,456 and $1,739,987 for the three and six months ended June 30, 2022, respectively. The portion of changes in fair value attributable to changes in the Company’s credit risk is accounted for within other comprehensive (loss) income during the three and six months ended June 30, 2023 was ($373,415) and $433,597, respectively. Compared to the three and six months ended June 30, 2022 was $371,255 and $371,255, respectively. Interest expense for the three and six months ended June 30, 2023 was $670,562 and $1,347,411, respectively. Compared to the three and six months ended June 30, 2022 was $348,574 and $588,738, respectively. At June 30, 2023 interest of $nil ($691,890 at December 31, 2022) is included in interest payable on the consolidated balance sheets. For the three and six months ended June 30, 2023 the Company recognized $18,803 and $268,889, respectively, loss on debt settlement in the condensed interim consolidated statements of income (loss) and comprehensive income (loss) as a result of settling interest by issuance of shares. Compared to the three and six months ended June 30, 2022 was $nil and $nil, respectively.

The Company performs quarterly testing of the covenants in the CD1 and CD2 and was in compliance with all such covenants as of June 30, 2023.

$5,000,000 Bridge Loan

On December 6, 2022, the Company closed a $5,000,000 loan facility with Sprott (the “Bridge Loan”). The Bridge Loan is secured by the same security package in place for the RCD, CD1, and CD2. The Bridge Loan bears interest of 10.5% per annum and matures at the earlier of (i) the advance of the Stream, or (ii) June 30, 2024. In addition, the minimum quantity of metal delivered under the Stream, if advanced, would increase by 5% relative to amounts previously announced.

On June 23, 2023 the Company repaid the outstanding principal and interest on the Bridge Loan recognizing a loss on extinguishment of debt of $222,754 in the condensed interim consolidated statements of (loss) income. At June 30, 2023 interest of $nil ($53,985 at December 31, 2022) is included in interest payable on the condensed interim balance sheets. Interest expense for three and six months ended June 30, 2023, was $168,166 and $346,550 respectively. Compared to the three and six months ended June 30, 2022, was $nil and $nil respectively.

$46,000,000 Stream

On June 23, 2023, all conditions were met for the closing of the Stream, and $46,000,000 was advanced to the Company. The Stream applies to 10% of all payable metals sold until a minimum quantity of metal is delivered consisting of, individually, 63.5 million pounds of zinc, 40.4 million pounds of lead, and 1.2 million ounces of silver (subsequently amended, as described below). Thereafter, the Stream would apply to 2% of payable metals sold. The delivery price of streamed metals will be 20% of the applicable spot price. The Company may buy back 50% of the Stream Amount at a 1.40x multiple of the Stream Amount between the second and third anniversary of the date of funding, and at a 1.65x multiple of the Stream Amount between the third and fourth anniversary of the date of funding. The Company incurred $824,156 of transactions costs directly related to the Stream which were capitalized against the initial recognition of the Stream of $45,175,844 on the condensed interim consolidated balance sheets.

The Company determined that in accordance with ASC 815 derivatives and hedging, the Stream does not meet the criteria for treatment as a derivate instrument as the quantities of metal to be sold thereunder are not subject to a minimum quantity, and therefore a notional amount is not determinable. The Company has therefore determined that in accordance with ASC 470, the stream obligation should be treated as a liability based on the indexed debt rules thereunder. The initial recognition has been made at fair value based on cash received, net of transaction costs, and the discount rate calibrated so that the future cash flows associated with the Stream, using forward commodity prices, equal the cash received. The measurement of the stream obligation is accounted for at amortized cost with accretion at the discount rate. Subsequent changes to the expected cash flows associated with the Stream will result in the adjustment of the carrying value of the stream obligation using the same discount rate, with changes to the carrying value recognized in the condensed interim consolidated statements of income.

The Company determined the effective interest rate of the Stream obligation to be 11.6% and recorded accretion expense on the liability of $85,000 for the three and six months ended June 30, 2023 ($nil for the three and six months 2022), bringing the liability to $45,260,844 as of June 30, 2023.

$21,000,000 Debt Facility

On June 23, 2023 the Company closed a $21,000,000 debt facility with SRSR which is available for draw at the Company’s election for a period of 2 years. As of June 23, 2023, and June 30, 2023, the company has not drawn on the facility. Any amounts drawn will bear interest of 10% per annum, payable annually in cash or capitalized until three years from closing of the Debt Facility at the Company’s election, and thereafter payable in cash only. The maturity date of any drawings under the Debt Facility will be June 23, 2027. For every $5 million or part thereof advanced under the Debt Facility, the Company will grant a new 0.5% life-of-mine gross revenue royalty, on the same terms as the Royalty, to a maximum of 2.0% on the Primary Claims and 1.4% on the Secondary Claims. The Company may buy back 50% of these royalties for $20 million. The Company determined that no recognition is required on the financial statements as of June 30, 2023.

8. Capital Stock, Warrants and Stock Options

Authorized

The total authorized capital is as follows:

●	1,500,000,000 Common Shares with a par value of $0.000001 per Common Share; and
●	10,000,000 preferred shares with a par value of $0.000001 per preferred share

Issued and outstanding

In March 2023, the Company amended the exercise price and expiry date of 10,416,667 warrants previously issued in a private placement to Teck Resources (“Teck”) on May 13, 2022 in consideration for the Company’s acquisition of the Pend Oreille processing plant. The warrant entitled the holder to purchase one Common Share of the Company at an exercise price of C$0.37 per Warrant at any time on or prior to May 12, 2025. The Company amended the exercise price from C$0.37 to C$0.11 per Warrant and the expiry date from May 12, 2025, to March 31, 2023, resulting in a gain on modification of warrants of $214,714. In March 2023, Teck exercised all 10,416,667 warrants at an exercise price of C$0.11, for aggregate gross proceeds of C$1,145,834 to the Company. During the quarter the Company recognized a change in derivative liability of $400,152 relating to the Teck warrants using the following assumptions: volatility of 120%, stock price of C$0.11, interest rate of 3.42% to 4.06%, and dividend yield of 0%.

In March 2023, the Company closed a brokered private placement of special warrants (the “March 2023 Offering”), issuing 51,633,727 special warrants of the Company (“March 2023 Special Warrants”) at C$0.12 per March 2023 Special Warrant for $4,536,020 (C$6,196,047), of which $3,661,822 was received in cash and $874,198 was applied towards settlement of accounts payable, accrued liabilities and promissory notes.

In connection with the Offering, each March 2023 Special Warrant is automatically exercisable (without payment of any further consideration and subject to customary anti-dilution adjustments) into one unit (“March 2023 Unit”) of the Company on the earlier date of: (i) the third business day following the date upon which the Company has obtained notification that a resale registration statement of the Company to be filed with the U.S. SEC (the “SEC”) registering the resale of the Underlying Shares (as defined below) issuable upon exercise of the March 2023 Special Warrants and the securities issuable thereunder, has been declared effective by the SEC; and (ii) September 27, 2023 (collectively, the “Automatic Exercise Date”), subject to compliance with U.S. securities laws.

Each March 2023 Unit consists of one share of Common Share of the Company (each, a “Unit Share”) and one common stock purchase warrant of the Company (each, a “Warrant”). Each whole Warrant entitles the holder thereof to acquire one Common Share of the Company (a “Warrant Share”, and together with the Unit Shares, the “Underlying Shares”) at an exercise price of C$0.15 per Warrant Share until March 27, 2026, subject to adjustment in certain events. In the event that the Registration Statement has not been declared effective by the SEC on or before 5:00 p.m. (EST) on July 27, 2023, each unexercised Special Warrant will be deemed to be exercised on the Automatic Exercise Date into one penalty unit of the Company (each, a “Penalty Unit”), with each Penalty Unit being comprised of 1.2 Unit Shares and 1.2 Warrants. Notice of such effectiveness was received on July 11, 2023, eliminating the potential for issuance of the Penalty Units.

In connection with the March 2023 Offering, the Company incurred share issuance costs of $846,661 and issued 2,070,258 compensation options (the “March 2023 Compensation Options”). Each March 2023 Compensation Option is exercisable at an exercise price of C$0.12 into one Unit Share and one Warrant Share. Refer to note 15 subsequent events for details on the effectiveness of the registration statement and conversion into units.

The Special Warrants issued on March 27, 2023 were converted to 51,633,727 Common Shares and common stock purchase warrants in the third quarter of 2023. As of June 30, 2023, the common shares and common stock purchase warrants had not been issued. The Company determined that in accordance with ASC 815 derivatives and hedging, each Special Warrant will be valued and carried as a single instrument, with the periodic changes to fair value accounted through earnings, profit and loss until the common shares and common stock purchase warrants are issued.

The fair value of the Special Warrant is determined through the valuation of the Unit Share based on the observed price of the Company’s Common Shares, a Level 1 input, together with a valuation of the warrant component of the March 2023 Unit using the Binomial model calibrated with inputs as shown in the table below.

Consistent with the approach above, the following table summarizes the key valuation inputs as at applicable valuation dates:

March 2023 special warrants	June 30, 2023			Grant Date
Expected life		1,001 days			1096 days
Volatility		24	%		24	%
Risk free interest rate		4.21	%		3.40	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.11
Fair value	$	12,845,643		$	4,536,020
Change in derivative liability	$	8,309,623

For prior financings, excluding the March 2023 Special Warrants, the Company has accounted for warrants in accordance with ASC 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 marked to market at each financial reporting period. The change in fair value of the warrant is recorded in the condensed interim consolidated statements of income (loss) and comprehensive income (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 outstanding warrants during the period were estimated using the Binomial model to determine the fair value using the following assumptions as at June 30, 2023 and December 31, 2022:

April 2022 special warrants issuance	June 30, 2023			December 31, 2022
Expected life		641 days			822 days
Volatility		120	%		120	%
Risk free interest rate		4.58	%		4.06	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	3,284,658		$	2,406,104
Change in derivative liability	$	878,554

April 2022 non-brokered issuance	June 30, 2023			December 31, 2022
Expected life		641 days			822 days
Volatility		120	%		120	%
Risk free interest rate		4.58	%		4.06	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	127,713		$	93,553
Change in derivative liability	$	34,160

June 2022 issuance	June 30, 2023			December 31, 2022
Expected life		641 days			822 days
Volatility		120	%		120	%
Risk free interest rate		4.58	%		3.72	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	105,701		$	77,429
Change in derivative liability	$	28,272

February 2021 issuance	June 30, 2023			December 31, 2022
Expected life		955 days			1,136 days
Volatility		120	%		120	%
Risk free interest rate		4.21	%		3.72	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	1,810,642		$	1,335,990
Change in derivative liability	$	474,652

August 2020 issuance	June 30, 2023			December 31, 2022
Expected life		62 days			243 days
Volatility		100	%		120	%
Risk free interest rate		4.58	%		4.06	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	1		$	903,697
Change in derivative liability	$	(903,696	)

June 2019 issuance	June 30, 2023			December 31, 2022
Expected life		915 days			1,096 days
Volatility		115	%		120	%
Risk free interest rate		4.12	%		3.82	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	961,686		$	725,737
Change in derivative liability	$	235,949

August 2019 issuance	June 30, 2023			December 31, 2022
Expected life		915 days			1,096 days
Volatility		115	%		120	%
Risk free interest rate		4.21	%		3.82	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	1,477,994		$	1,115,369
Change in derivative liability	$	362,625

Outstanding warrants at June 30, 2023 and June 30, 2022 were as follows:

Schedule of Warrant Activity

				Weighted		Weighted
				average		average
	Number of			exercise price		grant date
	warrants			(C$)		value ($)

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, June 30, 2022		162,129,064			0.49		0.17

Balance, December 31, 2022		162,129,064		$	0.49	$	0.17
Exercised		(10,416,667	)		0.11		0.12
Balance, June 30, 2023		151,712,397		$	0.50	$	0.17

During the six months ended June 30, 2023, 10,416,667 May 2022 Teck warrants were exercised. During the six months ended June 30, 2022, 239,284 February 2020 broker warrants expired.

At June 30, 2023, the following warrants were outstanding:

	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
				151,712,397		151,712,379

Compensation options

At June 30, 2023, the following broker options were outstanding:

Schedule of Compensation Options

			Weighted
	Number of		average
	broker		exercise price
	options		(C$)

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
Issued – March 2023 Compensation Options		2,070,258		0.15
Balance, June 30, 2023		7,541,057		0.28

(i)	The grant date fair value of the March 2023 Compensation Options were estimated at $111,971 using the Black-Scholes valuation model with the following underlying assumptions:

Grant Date		Risk free interest rate				Dividend yield				Volatility				Stock price				Weighted average life
March 2023			3.4	%			0	%			120	%			C$0.11				3 years

Schedule of Broker Exercise Prices

	Exercise		Number of		Grant date 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
March 27, 2026^(v)	$	0.15		2,070,258	$	111,971
				7,541,057	$	966,477

i)	Exercisable into one August 2020 Unit
ii)	Exercisable into one February 2021 Unit
iii)	Exercisable into one April 2022 Unit
iv)	Exercisable into one March 2023 Unit

Stock options

The following table summarizes the stock option activity during the six months ended June 30, 2023:

Schedule of Stock Options

				Weighted
				average
	Number of			exercise price
	stock options			(C$)

Balance, December 31, 2022		9,053,136		$	0.58
Granted		700,000		$	0.15
Expired, May 1, 2022		(47,000	)	$	10.00
Forfeited		(150,000	)	$	0.15
Expired, December 31, 2022		(235,500	)	$	0.50
Balance, December 31, 2022		9,320,636		$	0.51
Balance, June 30, 2023		9,320,636		$	0.51

The following table reflects the actual stock options issued and outstanding as of June 30, 2023:

					Number of
	remaining		Number of		options
Exercise	contractual		options		vested		Grant date
price (C$)	life (years)		outstanding		(exercisable)		fair value ($)
0.60		0.25		200,000		200,000		52,909
0.60		1.32		1,575,000		1,575,000		435,069
0.55		1.81		5,957,659		4,468,245		1,536,764
0.335		2.64		1,037,977		1,037,977		204,213
0.15		0.41		150,000		150,000		14,465
0.15		4.40		400,000		200,000		37,387
				9,320,636		7,631,222	$	2,280,807

The vesting of stock options during the three and six months ending June 30, 2023, resulted in stock based compensation expenses of $34,441 and $93,140 respectively ($66,384 and $168,994 for the three and six months ending June 30, 2022, respectively).

9. Restricted Share Units

Effective March 25, 2020, the Board of Directors approved a Restricted Share Unit (“RSU”) Plan to grant RSUs to its officers, directors, key employees and consultants.

The following table summarizes the RSU activity during the six months ended June 30, 2023:

Schedule of Restricted Share Units

				Weighted
				average
				grant date
				fair value
	Number of			per share
	shares			(C$)

Unvested as at December 31, 2021		576,000		$	0.62
Granted		6,620,641			0.17
Vested		(2,373,900	)		0.18
Unvested as at December 31, 2022		4,822,741		$	0.22
Granted		4,109,637			0.24
Vested		(5,767,218	)		0.24
Unvested as at June 30, 2023		3,165,160		$	0.22

	(i)	On January 10, 2022, the Company granted 500,000 RSUs to a consultant of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $122,249 for the six months ended June 30, 2022, which is included in operation and administration expenses on the condensed consolidated statements of (loss) income and comprehensive (loss) income.

	(ii)	On April 29, 2022, the Company granted 76,750 RSUs to certain consultants of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $16,800 for the year ended December, 2022, which is included in operation and administration expenses on the consolidated statements of (loss) income and comprehensive (loss) income.

	(iii)	On June 30, 2022, the Company granted 15,000 RSUs to a consultant of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $2,328 for the year ended December 31, 2022, which is included in operation and administration expenses on the consolidated statements of (loss) income and comprehensive (loss) income.

	(iv)	On June 1, 2023, the Company granted 4,067,637 RSUs to executives and employees of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $717,660 for the six months ended June 30, 2023, which is included in operation and administration expenses on the consolidated statements of (loss) income and comprehensive (loss) income.

	(v)	On June 4, 2023, the Company granted 42,000 RSUs to a consultant of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $7,825 for the six months ended June 30, 2023, which is included in operation and administration expenses on the consolidated statements of (loss) income and comprehensive (loss) income.

The vesting of RSU’s during the three and six months ending June 30, 2023, resulted in stock based compensation expense of $419,754 and $594,724 respectively ($15,922 and $38,859 for the three and six months ending June 30, 2022, respectively).

10. Deferred Share Units

Effective April 21, 2020, the Board of Directors approved a Deferred Share Unit (“DSU”) Plan to grant DSUs to its directors. The DSU Plan permits the eligible directors to defer receipt of all or a portion of their retainer or compensation until termination of their services and to receive such fees in the form of cash at that time.

Upon vesting of the DSUs or termination of service as a director, the director will be able to redeem DSUs based upon the then market price of the Company’s Common Share on the date of redemption in exchange for cash.

The following table summarizes the DSU activity during the six months ended June 30, 2023 and 2022:

Schedule of Deferred Share Units

				Weighted
				average
				grant date
				fair value
	Number of			per share
	shares			(C$)

Unvested as at December 31, 2021		5,625,000		$	1.03
Vested (i)		(3,125,000	)		1.03
Unvested as at June 30, 2022		2,500,000		$	1.03

Unvested as at December 31, 2022		2,710,000			0.97
Vested (ii)		(1,250,000	)		1.03
Unvested as at December 31 2022 and June 30, 2023		1,460,000		$	1.00

(i)

On March 31, 2022, the Board approved the early vesting of 625,000 DSUs for one of the Company’s Directors. During the three months ended June 30, 2022, the director redeemed 2,500,000 DSUs for C$750,000, and elected to use net proceeds to subscribe for 375,000 units in the Company’s April 2022 special warrant issuance at C$0.30 per unit, with the balance of the redeemed amount payable in cash after applicable withholding tax deductions.

(ii)

On April 21, 2023, 1,250,000 DSUs for one of the Company’s Directors vested.

The vesting of DSU’s during the three and six months ending June 30, 2023, resulted in stock based compensation expense of $486,602 and $287,324, respectively (stock based recovery of $695,494 and $895,416 for the three and six months ending June 30, 2022, respectively).

11. Commitments and Contingencies

As stipulated in the agreement with the EPA and as described in Note 6, the Company is required to make two types of payments to the EPA and IDEQ, one for historical water treatment cost-recovery to the EPA, and the other for ongoing water treatment. Water treatment costs incurred through December 2021 are payable to the EPA, and water treatment costs incurred thereafter are payable to the IDEQ. The IDEQ (as done formerly by the EPA) invoices the Company on an annual basis for the actual water treatment costs, which may exceed the recognized estimated costs significantly. When the Company receives the water treatment invoices, it records any liability for actual costs over and above any estimates made and adjusts future estimates as required based on these actual invoices received. The Company is required to pay for the actual costs regardless of the periodic required estimated accruals and payments made each year.

On July 28, 2021, a lawsuit was filed in the US District Court for the District of Idaho brought by Crescent Mining, LLC (“Crescent”). The named defendants include Placer Mining, Robert Hopper Jr., and the Company. The lawsuit alleges that Placer Mining and Robert Hopper Jr. intentionally flooded the Crescent Mine during the period from 1991 and 1994, and that the Company is jointly and severally liable with the other defendants for unspecified past and future costs associated with the presence of Acid Mine Drainage in the Crescent Mine. The plaintiff has requested unspecified damages. On September 20, 2021, the Company filed a motion to dismiss Crescent’s claims against it, contending that such claims are facially deficient.  On March 2, 2022, Chief US District Court Judge, David C. Nye granted in part and denied in part the Company’s motion to dismiss. The court granted the Company’s motion to dismiss Crescent’s Cost Recovery claim under CERCLA Section 107(a), Declaratory Judgment, Tortious Interference, Trespass, Nuisance and Negligence claims. These claims were dismissed without prejudice. The court denied the motion to dismiss filed by Placer Mining Corp. for Crescent’s trespass, nuisance and negligence claims. Crescent later filed an amended complaint on April 1, 2022. Placer Mining Corp. and Bunker Hill Mining Corp are named as co-defendants. The Company responded to the amended filing, refuting and denying all allegations made in the complaint except those that are assertions of fact as a matter of public record. The Company believes the lawsuit against Placer Mining Corp. is without merit and intends to defend Placer Mining Corp. vigorously pursuant to the Company’s indemnification of Placer Mining Corp in the Sale and Purchase agreement executed between the companies for the Mine on December 15, 2021.

12. Deferred tax liability

The Company incurred income tax expense of $3.5 million for the three and six months ended June 30, 2023, and incurred no income tax expense for the three and six months ended June 30, 2022. The Company’s effective income tax rate for the first six months of 2023 was -30.29% compared to 0.0% for the first six months of 2022. The effective tax rate during the first six months of 2023 rate differed from the statutory rate primarily due to the income tax treatment of the Stream proceeds as deferred revenue compared to its treatment as debt under U.S. GAAP thereby resulting in a decrease of the existing valuation allowance against deferred tax assets related to the utilization of $32.3 million of net operating losses not previously benefitted. The Company maintains a valuation allowance against net operating losses subject to Section 382 and other deferred tax assets. The effective tax rate during the first six months of 2022 rate differed from the statutory rate primarily due to changes in the valuation allowance established to offset net deferred tax assets.

A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company will likely ultimately be able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced.

13. Related party transactions

The Company’s key management personnel have the authority and responsibility for planning, directing and controlling the activities of the Company and consists of the Company’s executive management team and management directors.

Schedule of Related Party Transactions

	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2023		2022		2023		2022
Consulting fees & wages	$	357,468	$	486,241	$	572,917	$	1,583,850

At June 30, 2023 and June 30, 2022, $52,148 and $1,049,304, respectively is owed to key management personnel with all amounts included in accounts payable and accrued liabilities.

14. Subsequent Events

Conversion of March 2023 Special Warrants

On July 24, 2023, the “March 2023, Special Warrants” automatically converted into one share of common stock of the company and one common stock purchase warrant of the company which entitles each warrant holder to acquire one share of common stock of the Company at an exercise price of $0.15 per warrant share until March 27, 2026.

2023 RSU Grant

On July 4, 2023, 6,735,354 RSU’s were granted to employees and executives of the Company. The RSU awards vest in one-third increments on March 31 of 2024, 2025 and 2026.

2023 DSU Grant

On July 4, 2023, 1,611,826 DSU’s were granted to directors of the Company. The DSU awards vest immediately.

On July 6, 2023, 245,454 DSU’s were granted to a director of the Company. The DSU award vests on July 6, 2024.

Item 2. Management’s Discussion and Analysis of Financial Condition or Plan of Operation

SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this report, including statements in the following discussion, are what are known as “forward looking statements”, which are basically statements about the future. For that reason, these statements involve risk and uncertainty since no one can accurately predict the future. Words such as “plans,” “intends,” “will,” “hopes,” “seeks,” “anticipates,” “expects “and the like often identify such forward looking statements, but are not the only indication that a statement is a forward-looking statement. Such forward looking statements include statements concerning the Company’s plans and objectives with respect to the present and future operations of the Company, and statements which express or imply that such present and future operations will or may produce revenues, income or profits. Numerous factors and future events could cause the Company to change such plans and objectives or fail to successfully implement such plans or achieve such objectives, or cause such present and future operations to fail to produce revenues, income or profits. Therefore, the reader is advised that the following discussion should be considered in light of the discussion of risks and other factors contained in this report and in the Company’s other filings with the SEC. No statements contained in the following discussion should be construed as a guarantee or assurance of future performance or future results.

Description of Business

Corporate Information

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. On February 11, 2010, the Company changed its name to Liberty Silver Corp and subsequently, on September 29, 2017, the Company changed its name to Bunker Hill Mining Corp. The Company’s registered office is located at 1802 N. Carson Street, Suite 212, Carson City Nevada 89701, and its head office is located at 82 Richmond Street East, Toronto, Ontario, Canada, M5C 1P1, and its telephone number is 416-477-7771. The Company’s website is www.bunkerhillmining.com. Information appearing on the website is not incorporated by reference into this report.

Background and Overview

The Company’s sole focus is the development and restart of its 100% owned Bunker Hill mine (the “Mine”) in Idaho, USA. The Mine remains the largest single producing mine by tonnage in the Silver Valley region of northwest Idaho, producing over 165 million ounces of silver and 5 million tons of base metals between 1885 and 1981. The Mine is located within Operable Unit 2 of the Bunker Hill Superfund site (EPA National Priorities Listing IDD048340921), where cleanup activities have been completed.

The Company purchased the Mine on January 7, 2022 for $5,400,000 in cash. Prior to purchasing the Mine, the Company had entered into a series of agreements with Placer Mining Corporation (“Placer Mining”), the prior owner, for the lease and option to purchase the Mine. The first of these agreements was announced on August 28, 2017, with subsequent amendments and/or extensions announced on November 1, 2019, July 7, 2020, and November 20, 2020.

Under the most recent of these agreements, the Company was required to make payments pursuant to an agreement with the U.S. Environmental Protection Agency (“EPA”) whereby for so long as the Company leases, owns and/or occupies the Mine, the Company would make payments to the EPA on behalf of Placer Mining in satisfaction of the EPA’s claim for historical water treatment cost recovery in accordance with the Settlement Agreement reached with the EPA in 2018. Immediately prior to the purchase of the Mine, the Company’s liability to EPA in this regard totaled $11,000,000. Concurrent with the purchase of the Mine, the Company assumed incremental liabilities of $8,000,000 to the EPA, consistent with the terms of the amended Settlement Agreement with the EPA that was executed in December 2021 (see “EPA 2018 Settlement Agreement & 2021 Amended Settlement Agreement” in the “Our Business” section above).

In early 2020, a new management team comprised of former executives from Barrick Gold Corp. assumed leadership of the Company. Since that time, the Company conducted multiple exploration campaigns, published multiple economic studies and Mineral Resource Estimates, and advanced the rehabilitation and development of the Mine. In December 2021, it announced a project finance package with Sprott Private Resource Streaming & Royalty Corp. (“SRSR”), an amended Settlement Agreement with the EPA, and the purchase of the Bunker Hill Mine, setting the stage for a restart of the Mine.

Key milestones following the purchase of the mine have included the purchase and demobilization of a process plant to site, advancement of engineering and a Prefeasibility Study envisaging the restart of the Mine, the completion of the primary portion of the ramp decline connecting the 5 and 6 Levels and securing of $96,000,000 of financing commitments from SRSR.

Results of Operations

The following discussion and analysis provide information that is believed to be relevant to an assessment and understanding of the results of operation and financial condition of the Company for the three and six months ended June 30, 2023 and June 30, 2022. Unless otherwise stated, all figures herein are expressed in U.S. dollars, which is the Company’s functional currency.

Comparison of the three and six months ended June 30, 2023 and 2022

Revenue

During the three and six months ended June 30, 2023, and 2022, respectively, the Company generated no revenue.

Expenses

During the three and six months ended June 30, 2023, the Company reported total operating expenses of $3,336,973 and $5,522,461, respectively (total operating expenses of $ 3,979,862 and $9,466,536 for the three and six months ending June 30, 2022, respectively).

The decrease in total operating expenses was primarily due to (i) a decrease in mine preparation expenses of $1,821,223, and $4,382,302 (ii) a decrease in consulting and wages expenses of $636,137 and $2,222,699 for the three and six months ending, respectively. Mine preparation expenses were $nil in the six months ended June 30, 2023, primarily as a result of the Company determining that costs directly attributed to the mine after September 30, 2022 (upon the release of the prefeasibility study) constituted mine development costs (capitalized to non-current assets) instead of mine preparation costs (expense) given the existence of probable mineral reserves and an economic study incorporating them. The decrease in consulting and wages expenses was impacted by a lower volume of transactions and a lower bonus accrual in the three and six months ended June 30, 2023, as compared to the three and six months ended June 30, 2022.

Net Income (loss) and Comprehensive Income (loss)

The Company had net loss of $16,857,782 for the three months ended June 30, 2023 (net income of $12,054,781 for the three months ended June 30, 2022). Offsetting the decrease in operating expenses (as described above), net loss in the three months ended June 30, 2023 was impacted by a $21,015,772, increase in the loss due to change in derivative liability (loss of $13,246,561 for the three months ended June 30, 2023 compared to gain of $7,769,211 for the three months ended June 30, 2022) and a loss of $1,884,232 for the 3 months ending June 30, 2023 relating to the change in fair of convertible debentures compared to a gain of 626,075 for the 3 months ending June 30, 2022). Both changes in fair value were driven by a proportionally greater incline in the Company’s share price for the three months ending June 30, 2023, relative to a decline in share price in the three months ending June 30, 2022. The change in net loss was further impacted by a decrease of $1,496,683 gain on extinguishment in debt in the three months ending June 30, 2023, compared to the 3 months ending June 30, 2022. A gain of $7,117,420 was recognized in the three months ending June 30, 2023, relating to the sale of mineral properties, compared with a $8,614,103 gain on EPA settlement in the three months ending June 30, 2022. Net loss for the three months ending June 30, 2023, included the initial recognition of a deferred tax liability and corresponding deferred tax expense relating to the closing of the stream transaction ($3,508,741 for the six months ending June 30, 2023, compared to $nil for the 6 months ending June 30, 2022).

The Company had net loss of $15,066,635 for the six months ended June 30, 2023 (net income of $9,173,895 for the six months ended June 30, 2022). Offsetting the decrease in operating expenses (as described above), net loss in the six months ended June 30, 2023 was impacted by a $20,243,206 increase in the loss due to change in derivative liability (loss of $9,019,987 for the six months ended June 30, 2023 compared to gain of $11,223,2019 for the six months ended June 30, 2022) and a loss of $194,531 for the 3 months ending June 30, 2023 relating to the change in fair of convertible debentures compared to a gain of 552,606 for the 3 months ending June 30, 2022). Both changes in fair value were driven by a proportionally greater incline in the Company’s share price for the six months ending June 30, 2023, relative to a decline in share price in the six months ending June 30, 2022. The change in net loss was further impacted by a decrease of $1,496,683 gain on extinguishment in debt in the six months ending June 30, 2023, compared to the 3 months ending June 30, 2022. A gain of $7,117,420 was recognized in the six months ending June 30, 2023, relating to the sale of mineral properties, compared with a $8,614,103 gain on EPA settlement in the six months ending June 30, 2022. Net loss for the six months ending June 30, 2023, included the initial recognition of a deferred tax liability and corresponding deferred tax expense relating to the closing of the stream transaction ($3,508,741 for the six months ending June 30, 2023, compared to $nil for the 6 months ending June 30, 2022).

The Company had comprehensive loss of $17,231,197 and $14,633,038 for the three and six months ended June 30, 2023, respectively (comprehensive income of $12,426,367 and $9,545,481 for the month three and six ended June 30, 2022, respectively). Comprehensive (loss) income for the three and six months ended June 30, 2023, is inclusive of a ($373,415) and $433,597 gain on change in fair value on own credit risk ($371,586 and $371,586 for the three and six months ended June 30, 2022, respectively).

Liquidity and Capital Resources

Current Assets and Total Assets

As of June 30, 2023, the Company had total current assets of $42,831,724, compared to total current assets of $7,741,052 at December 31, 2022 – an increase of $35,090,672; and total assets of $67,863,964, compared to total assets of $32,929,892 at December 31, 2022 – an increase of $34,934,072. The increase in current assets and total assets was primarily due to the closing of the $46,000,000 Stream, net of repayment of the $5,000,000 Bridge Loan and transaction related costs.

Current Liabilities and Total Liabilities

As of June 30, 2023, the Company had total current liabilities of $18,353,350 and total liabilities of $104,296,588, compared to total current liabilities of $10,155,582 and total liabilities of $59,106,835 at December 31, 2022. Current liabilities decreased primarily as a result of the repayment of the $5,000,000 Bridge Loan from the proceeds of the Stream. Total liabilities increased primarily as a result of closing of the $46,000,000 Stream (net of repayment of the $5,000,000 Bridge Loan) and an increase in the carrying values of the CD1 and CD2 and settlement of RCD.

Working Capital and Shareholders’ Deficit

As of June 30, 2023, the Company had a working capital balance of $24,478,374 and a shareholders’ deficiency of $36,432,624 compared to a working capital deficit of $2,414,530 and a shareholders’ deficiency of $26,176,943 as of December 31, 2022. The working capital balance increased during the six months ended June 30, 2023, primarily due to cash received from closing of the $46,000,000 Stream (net of repayment of the $5,000,000 Bridge Loan and transaction related costs) and cash received from the closing of a brokered private placement of special warrants of the Company, partially offset by operating expenses and capital expenditures incurred during the period. The shareholders’ deficiency decreased due to net loss for the six months ended June 30, 2023, partially offset by an increase due to proceeds received from equity financing in the six months ended June 30, 2023.

Cash Flow

During the six months ended June 30, 2023, the Company had a net cash increase of $34,425,054, primarily due to the closing of a brokered private placement of special warrants of the Company and proceeds received from the exercise of warrants and closing of the Stream agreement with SRSR. Cash expenditures during the six months ended June 30, 2023, were primarily related to working capital requirements.

Subsequent Events

Conversion of March 2023 Special Warrants

On July 24, 2023, the “March 2023, Special Warrants” automatically converted into one share of common stock of the company and one common stock purchase warrant of the company which entitles each warrant holder therof to acquire one share of common stock of the Company at an exercise price of $0.15 per Warrant share until March 27, 2026.

2023 RSU Grant

On July 4, 2023, 6,735,354 RSU’s were granted to employees and executives of the Company. The RSU awards vest in one-third increments on March 31 of 2024, 2025 and 2026.

2023 DSU Grant

On July 4, 2023, 1,611,826 DSU’s were granted to directors of the Company. The DSU awards vest immediately.

On July 6, 2023, 245,454 DSU’s were granted to a director of the Company. The DSU award vest on July 6, 2024.

New Director

On July 6, 2023, the Company appointed Paul Smith to its Board of Directors and Chair of its new Growth Committee.

AGM Results and Amendments to Equity Compensation Plans

The Company held its Annual General Meeting (the “Meeting”) on August 4, 2023. The nominees for the Board of Directors listed in the Company’s management information circular dated July 6, 2023 (the “Circular”), being (i) Sam Ash, (ii) Mark Cruise, (iii) Dickson Hall, (iv) Cassandra Joseph, (v) Pamela Saxton, (vi) Paul Smith and (vii) Richard Williams, were elected to the board of directors of the Company (the “Board”) to hold office until the next annual meeting of shareholders or until their successors are duly appointed or elected.

In addition, at the Meeting, the shareholders of the Company approved: (ii) the re-appointment of MNP LLP Chartered Professional Accountants as auditor of the Company for the ensuing year; (ii) the Company’s amended and restated stock option plan (the “Amended and Restated Stock Option Plan”); and (iii) the Company’s amended and restated restricted stock unit incentive plan (the “Amended and Restated RSU Plan” and, together with the Stock Option Plan, the “Security Based Compensation Plans”).

The Security Based Compensation Plans were each approved by the Board on July 5, 2023 and are being implemented to comply with the policies of the TSX Venture Exchange (the “TSXV”) in connection with Bunker Hill’s application to list its common stock (the “Common Shares”) on the TSXV.

The Amended and Restated Stock Option Plan is a rolling plan meaning that the maximum number of Common Shares issuable thereunder is 10% of the issued and outstanding Common Shares (on a non-diluted basis) at the time of the grant of options.

The Amended and Restated RSU Plan is a fixed plan meaning the maximum number of Common Shares issuable thereunder is fixed at 26,581,075, being 10% of the issued and outstanding Common Shares (on a non-diluted basis as at July 5, 2023.

Additional information regarding the Security Based Compensation Plans, including details regarding the amendments, can be found in the Circular posted on Bunker Hill’s SEDAR+ profile at www.sedarplus.ca.

Critical accounting estimates

The preparation of the interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and contingent liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Estimates and judgments are continuously evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual outcomes can differ from these estimates. The key sources of estimation uncertainty that have a significant risk of causing material adjustment to the amounts recognized in the financial statements are:

Share-based payments

Management determines costs for share-based payments using market-based valuation techniques. The fair value of the share awards and warrant liabilities are determined at the date of grant using generally accepted valuation techniques and for warrant liabilities at each balance sheets date thereafter. Assumptions are made and judgment used in applying valuation techniques. These assumptions and judgments include estimating the future volatility of the stock price and expected dividend yield. Such judgments and assumptions are inherently uncertain. Changes in these assumptions affect the fair value estimates.

Convertible loans, promissory notes, stream obligation and warrants

Estimating the fair value of derivative warrant liability requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the issuance. This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the warrants derivative liability, volatility and dividend yield and making assumptions about them.

The fair value estimates of the convertible loans use inputs to the valuation model that include risk-free rates, equity value per common share, USD-CAD exchange rates, spot and futures prices of minerals, expected equity volatility, expected volatility in minerals prices, discount for lack of marketability, credit spread, expected mineral production over the life of the mine, and project risk/estimation risk factors.

The stream obligation inputs used to determine the future cash flows and effective interest for the amortized cost calculation include futures prices of minerals and expected mineral production over the life of the mine.

The fair value estimates may differ from actual fair values and these differences may be significant and could have a material impact on the Company’s balance sheets and the consolidated statements of operations. Assets are reviewed for an indication of impairment at each reporting date. This determination requires significant judgment. Factors that could trigger an impairment review include, but are not limited to, significant negative industry or economic trends, interruptions in exploration activities or a significant drop in precious metal prices.

Accrued liabilities

The Company has to make estimates to accrue for certain expenditures due to delay in receipt of third-party vendor invoices. These accruals are made based on trends, history and knowledge of activities. Actual results may be different.

The Company makes monthly estimates of its water treatment costs, with a true-up to the annual invoice received from the IDEQ. Using the actual costs in the annual invoice, the Company will then reassess its estimate for future periods. Given the nature, complexity and variability of the various actual cost items included in the invoice, the Company has used the most recent invoice as its estimate of the water treatment costs for future periods.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Securities and Exchange Commission (“SEC”) defines the term “disclosure controls and procedures” to mean a company’s controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified under the SEC’s rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosure.

As of the end of the period covered by this report, the Company made an evaluation of the effectiveness of the design and operation of the disclosure controls and procedures over financial reporting for the timely alert to material information required to be included in the Company’s periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported within the time periods specified. This evaluation resulted in the conclusion that the design and operation of the disclosure controls and procedures were effective as of June 30, 2023.

Internal Control Over Financial Reporting

The management of the Company is responsible for the preparation of the financial statements and related financial information appearing in this report. The financial statements and notes have been prepared in conformity with accounting principles generally accepted in the United States of America. The management of the Company also is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. A company’s internal control over financial reporting is defined as a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Company’s internal control over financial reporting includes those policies and procedures that: i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company; ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the issuer are being made only in accordance with authorizations of management and directors of the Company; and iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Management, including the CEO and CFO, does not expect that the Company’s disclosure controls, procedures and internal control over financial reporting will prevent all error and all fraud. Because of its inherent limitations, a system of internal control over financial reporting can provide only reasonable, not absolute, assurance that the objectives of the control system are met and may not prevent or detect misstatements. Further, over time, control may become inadequate because of changes in conditions or the degree of compliance with the policies or procedures may deteriorate. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented if there exists in an individual a desire to do so. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

With the participation of the CEO and CFO, the Company’s management evaluated the effectiveness of the Company’s internal control over financial reporting as of June 30, 2023 to ensure that information required to be disclosed by the Company in the reports filed or submitted by the Company under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, including to ensure that information required to be disclosed by the Company in the reports filed or submitted by the Company under the Exchange Act is accumulated and communicated to the Company’s management, including the Company’s principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on that evaluation, the Company’s CEO and CFO have concluded that the internal control over financial reporting was effective as of June 30, 2023.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

Other than as described below, neither the Company nor its property is the subject of any current, pending, or threatened legal proceedings. The Company is not aware of any other legal proceedings in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of the Company’s voting securities, or any associate of any such director, officer, affiliate or security holder of the Company, is a party adverse to the Company or any of its subsidiaries or has a material interest adverse to the Company or any of its subsidiaries.

On July 28, 2021, a lawsuit was filed in the US District Court for the District of Idaho brought by Crescent Mining, LLC (“Crescent”). The named defendants include Placer Mining, Robert Hopper Jr., and the Company. The lawsuit alleges that Placer Mining and Robert Hopper Jr. intentionally flooded the Crescent Mine during the period from 1991 and 1994, and that the Company is jointly and severally liable with the other defendants for unspecified past and future costs associated with the presence of AMD in the Crescent Mine. The plaintiff has requested unspecified damages. On September 20, 2021, the Company filed a motion to dismiss Crescent’s claims against it, contending that such claims are facially deficient.  On March 2, 2022, Chief US District Court Judge, David C. Nye granted in part and denied in part the Company’s motion to dismiss. The court granted the Company’s motion to dismiss Crescent’s Cost Recovery claim under CERCLA Section 107(a), Declaratory Judgment, Tortious Interference, Trespass, Nuisance and Negligence claims. These claims were dismissed without prejudice. The court denied the motion to dismiss filed by Placer Mining Corp. for Crescent’s trespass, nuisance and negligence claims. Crescent later filed an amended complaint on April 1, 2022. Placer Mining Corp. and Bunker Hill Mining Corp are named as co-defendants. The Company responded to the amended filing, refuting and denying all allegations made in the complaint except those that are assertions of fact as a matter of public record. The Company believes the lawsuit against Placer Mining Corp. is without merit and intends to defend Placer Mining Corp. vigorously pursuant to the Company’s indemnification of Placer Mining Corp in the Sale and Purchase agreement executed between the companies for the Mine on December 15, 2021.

On October 26, 2021, the Company asserted claims against Crescent in a separate lawsuit. Bunker Hill Mining Corporation v. Venzee Technologies Inc. et al, Case No. 2:21-cv-209-REP, filed in the same court on May 14, 2021. The Company has subsequently executed a tolling agreement with Venzee in exchange for dropping its lawsuit. The Company originally filed this lawsuit on May 14, 2021 against other parties but has since filed an amended complaint to include its claims against Crescent. This lawsuit has been consolidated into the lawsuit Crescent filed on July 28, 2021.

Item 1A. Risk Factors

There have been no changes to our risk factors as reported in our annual report on Form 10-K for the year ended December 31, 2022.

Item 2. Unregistered Sales of Equity Securities and Use Of Proceeds

Not Applicable.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosure

Pursuant to Section 1503(a) of the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, issued under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”) by the Mine Safety and Health Administration (the “MSHA”), as well as related assessments and legal actions, and mining-related fatalities.

The following table provides information for the three months ended June 30, 2023.

Mine

Mine Act §104 Violations (1)

Mine Act §104(b) Orders (2)

Mine Act §104(d) Citations and Orders (3)

Mine Act §110(b)(2) Violations (4)

Mine Act §107(a) Orders (5)

Proposed Assessments from MSHA (In dollars $)

Mining Related Fatalities

Mine Act §104(e) Notice (yes/no) (6)

Pending Legal Action before Federal Mine Safety and Health Review Commission (yes/no)

Bunker Hill Mine

143.00

(1)	The total number of violations received from MSHA under §104 of the Mine Act, which includes citations for health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.

(2)	The total number of orders issued by MSHA under §104(b) of the Mine Act, which represents a failure to abate a citation under §104(a) within the period of time prescribed by MSHA.

(3)	The total number of citations and orders issued by MSHA under §104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards.

(4)	The total number of flagrant violations issued by MSHA under §110(b)(2) of the Mine Act.

(5)	The total number of orders issued by MSHA under §107(a) of the Mine Act for situations in which MSHA determined an imminent danger existed.

(6)	A written notice from the MSHA regarding a pattern of violations, or a potential to have such pattern under §104(e) of the Mine Act.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit No.		Document
31.1		Certification of the Chief Executive Officer pursuant to Rule 13a-14 of the Exchange Act
31.2		Certification of the Chief Financial Officer pursuant to Rule 13a-14 of the Exchange Act
32.1		Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SIGNATURES

In accordance with Section 12 of the Securities Exchange Act of 1934, the Registrant has caused this Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 14, 2023

	BUNKER HILL MINING CORP.

	By	/s/ Sam Ash
		Sam Ash, Chief Executive Officer and President

In accordance with Section 12 of the Securities Exchange Act of 1934, the Registrant has caused Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 14, 2023

	BUNKER HILL MINING CORP.

	By	/s/ David Wiens
		David Wiens, Chief Financial Officer and Corporate Secretary

Exhibit 31.1

CERTIFICATION

I, Sam Ash, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Bunker Hill Mining Corp.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 14, 2023

By:	/s/ Sam Ash
	Sam Ash, Chief Executive Officer, President and Principal Executive Officer

A signed original of this written statement has been provided to the registrant and will be retained by the registrant to be furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit 31.2

CERTIFICATION

I, David Wiens, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Bunker Hill Mining Corp.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 14, 2023

By:	/s/ David Wiens
	David Wiens, Chief Financial Officer, Principal Financial Officer

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Bunker Hill Mining Corp., (the “Company”) on Form 10-Q for the period ending June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Sam Ash, Chief Executive Officer, President and Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

	1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Bunker Hill Mining Corp.

/s/ Sam Ash		DATE: August 14, 2023
Sam Ash, Chief Executive Officer and President

A signed original of this written statement required by Section 906 has been provided to Bunker Hill Mining Corp. and will be retained by Bunker Hill Mining Corp. to be furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Bunker Hill Mining Corp., (the “Company”) on Form 10-Q for the period ending June 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David Wiens, Chief Financial Officer and Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

	1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Bunker Hill Mining Corp.

/s/ David Wiens		DATE: August 14, 2023
David Wiens, Chief Financial Officer

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2023	Aug. 14, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	333-150028
Entity Registrant Name	BUNKER HILL MINING CORP.
Entity Central Index Key	0001407583
Entity Tax Identification Number	32-0196442
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	82 Richmond Street East
Entity Address, City or Town	Toronto
Entity Address, State or Province	ON
Entity Address, Country	CA
Entity Address, Postal Zip Code	M5C 1P1
City Area Code	(416)
Local Phone Number	477-7771
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		317,444,482

Condensed Interim Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash	$ 35,133,159	$ 708,105
Restricted cash	6,476,000	6,476,000
Accounts receivable and prepaid expenses (note 3)	1,222,565	556,947
Total current assets	42,831,724	7,741,052
Non-current assets
Spare parts inventory	341,004	341,004
Equipment (note 4)	534,784	551,204
Right-of-use asset (note 4)	102,151
Long term deposit	69,015	269,015
Bunker Hill Mine and mining interests (note 5)	13,992,896	15,896,645
Process plant (note 4)	9,992,390	8,130,972
Total assets	67,863,964	32,929,892
Current liabilities
Accounts payable	2,878,719	4,523,502
Accrued liabilities	644,930	1,500,164
Interest payable (note 7)	27,738	1,154,477
Derivative warrant liability (note 8)	1	903,697
Deferred share units liability (note 10)	861,066	573,742
Derivative special warrant liability (note 8)	12,845,643
Promissory notes payable (note 7)	1,095,253	1,500,000
Total current liabilities	18,353,350	10,155,582
Non-current liabilities
Bridge loan (note 7)		4,684,446
Series 1 convertible debenture (note 7)	5,812,092	5,537,360
Series 2 convertible debenture (note 7)	14,644,406	14,063,525
Stream obligation (note 7)	45,260,844
Royalty convertible debenture (note 7)		10,285,777
Environmental protection agency cost recovery liability, net of discount (note 6)	8,712,435	7,941,466
Deferred tax liability (note 12)	3,745,067
Derivative warrant liabilities (note 8)	7,768,394	6,438,679
Total liabilities	104,296,588	59,106,835
Shareholders’ Deficiency
Preferred shares, $0.000001 par value, 10,000,000 preferred shares authorized; Nil preferred shares issued and outstanding (note 8)
Common shares, $0.000001 par value, 1,500,000,000 common shares authorized; 265,810,755 and 229,501,661 common shares issued and outstanding, respectively (note 8)	264	228
Additional paid-in-capital (note 8)	49,538,834	45,161,513
Accumulated other comprehensive income	687,472	253,875
Accumulated deficit	(86,659,194)	(71,592,559)
Total shareholders’ deficiency	(36,432,624)	(26,176,943)
Total shareholders’ deficiency and liabilities	$ 67,863,964	$ 32,929,892

Condensed Interim Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.000001	$ 0.000001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.000001	$ 0.000001
Common stock, shares authorized	1,500,000,000	1,500,000,000
Common stock, shares issued	265,810,755	229,501,661
Common stock, shares outstanding	265,810,755	229,501,661

Condensed Interim Consolidated Statements of (loss) Income and Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating expenses
Operation and administration	$ 2,003,905	$ 176,892	$ 2,883,897	$ 436,604
Mine preparation		1,821,223		4,328,302
Legal and accounting	388,776	401,318	923,687	764,054
Consulting	944,292	1,580,429	1,714,877	3,937,576
Loss from operations	(3,336,973)	(3,979,862)	(5,522,461)	(9,466,536)
Other income or gain (expense or loss)
Interest income	231,133		231,133
Change in derivative liabilities (note 8)	(13,246,561)	7,769,211	(9,019,987)	11,223,219
Gain (loss) on foreign exchange	(591)	(249,244)	(3,479)	(221,324)
(Loss) gain on FV of debentures (note 7)	(1,884,232)	1,813,456	(194,531)	1,739,987
Gain on EPA settlement		8,614,103		8,614,103
Gain on debt settlement (note 5)	7,117,420		7,117,420
Gain on warrant settlement			214,714
Interest expense (note 7)	(1,388,420)	(382,370)	(2,713,049)	(1,117,607)
Debenture finance costs		(1,099,051)		(1,166,485)
Finance costs (note 7, 8)	(524,130)	(455,653)	(1,100,881)	(455,653)
Other income	24,439	24,191	24,439	24,191
Loss on debt modification (note 7)	(99,569)		(99,569)
Loss on debt settlement (note 7)	(241,557)		(491,643)
(Loss) income for the period pre tax	(13,349,041)	12,054,781	(11,557,894)	9,173,895
Deferred tax expense (note 12)	(3,508,741)		(3,508,741)
Net (loss) income for the period	(16,857,782)	12,054,781	(15,066,635)	9,173,895
Other comprehensive (loss) income, net of tax:
(loss) gain on change in FV on own credit risk	(373,415)	371,586	433,597	371,586
Other comprehensive income	(373,415)	371,586	433,597	371,586
Comprehensive (loss) income	(17,231,197)	12,426,367	(14,633,038)	9,545,481
Dilutive effect of convertible debentures		(836,204)		(865,015)
Dilutive effect of derivative warrant liabilities
Diluted net (loss) income and comprehensive (loss) income for the period	$ (17,231,197)	$ 11,590,163	$ (14,633,038)	$ 8,680,466
Net income (loss) per common share – basic	$ (0.07)	$ 0.06	$ (0.06)	$ 0.05
Net income (loss) per common share – fully diluted	$ (0.07)	$ 0.05	$ (0.06)	$ 0.04
Weighted average common shares – basic	258,236,840	210,586,156	247,170,167	187,638,287
Weighted average common shares – fully diluted	258,236,840	245,879,831	247,170,167	214,210,598

Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Operating activities
Net (loss) income for the period	$ (16,857,782)	$ 12,054,781	$ (15,066,635)	$ 9,173,895
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation (note 9)			975,188	(135,128)
Depreciation expense			89,193	129,445
Change in fair value of warrant liability			9,019,987	(11,223,219)
Deferred tax expense (note 12)	3,508,741		3,508,741
Gain on warrant settlement			(214,714)
Units issued for services			111,971	1,060,858
Interest expense on lease liability (note 7)			5,080	1,834
Financing costs				264,435
Foreign exchange loss (gain)				221,324
Foreign exchange loss (gain) on re-translation of lease				718
Loss on debt modification	99,569		99,569
Loss on debt settlement	241,557		491,643
loss (gain) on fair value of debentures			194,531	(1,739,987)
Amortization of non-current liabilities			855,969	284,087
Gain on debt settlement			(7,117,420)
Gain on EPA debt settlement				(8,614,103)
Changes in operating assets and liabilities:
Accounts receivable and prepaid expenses			(470,181)	(718,179)
Accounts payable			(61,969)	(23,224)
Accrued liabilities			(118,577)	465,268
Accrued EPA/IDEQ water treatment				(903,565)
Prepaid finance costs				393,640
Deposit on plant demobilization				(1,000,000)
EPA cost recovery payable				(2,000,000)
Interest payable			1,041,361	766,955
Net cash used in operating activities			(6,656,263)	(13,594,946)
Investing activities
Additions to Bunker Hill Mine and mining interests			(514,127)	(5,524,322)
Land purchase				(202,000)
Process plant			(3,155,362)	(1,289,477)
Purchase of equipment			(60,004)	(161,558)
Purchase of spare parts inventory				(341,004)
Net cash used in investing activities			(3,729,493)	(7,518,361)
Financing activities
Proceeds from stream obligation			46,000,000
Transaction costs stream obligation			(304,156)
Proceeds from convertible debentures				29,000,000
Proceeds from issuance of shares, net of issue costs				7,769,745
Proceeds from issuance of special warrants			3,661,822
Proceeds from warrants exercise			837,459
Proceeds from promissory note			390,000
Repayment of bridge loan			(5,000,000)
Repayment of promissory notes			(654,315)	(1,000,000)
Lease payments			(120,000)	(64,828)
Net cash provided by financing activities			44,810,810	35,704,917
Net change in cash			34,425,054	14,591,610
Cash and restricted cash, beginning of period			7,184,105	486,063	$ 486,063
Cash and restricted cash, end of period	41,609,159	15,077,673	41,609,159	15,077,673	7,184,105
Supplemental disclosures
Cash interest paid			322,708
Non-cash activities
Accounts payable, accrued liabilities, and promissory notes settled with special warrants issuance			874,198	228,421
Mill purchase for shares and warrants				3,243,296
Units issued to settle DSU/RSU/Bonuses				872,399
Interest payable settled with common shares			2,039,282	269,750
Reconciliation from Cash Flow Statement to Balance Sheet:
Cash and restricted cash end of period	41,609,159	15,077,673	41,609,159	15,077,673
Less restricted cash	6,476,000	9,476,000	6,476,000	9,476,000	6,476,000
Cash end of period	$ 35,133,159	$ 5,601,673	$ 35,133,159	$ 5,601,673	$ 708,105

Condensed Interim Consolidated Statements of Changes in Shareholders' Deficiency (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Balance, December 31, 2021			$ (26,176,943)	$ (34,242,368)
Stock-based compensation			1,050,105	161,107
Compensation options			111,971	264,435
Shares issued for RSUs vested
Shares issued for warrant exercise			907,091
Shares issued for interest payable			2,308,191	269,750
OCI	$ (373,415)	$ 371,586	433,597	371,586
Net income (loss)	(16,857,782)	12,054,781	(15,066,635)	9,173,895
Balance	(36,432,624)	(19,447,576)	(36,432,624)	(19,447,576)
Non brokered shares issued for $0.30 CAD				352,855
Stock subscription received for units				1,775,790
Special warrant shares issued for $0.30 CAD				7,307,967
Contractor shares issued for $0.30 CAD				290,000
Shares issued for Mill purchase				1,970,264
Issue costs				(896,009)
Warrant valuation				(6,246,848)
Common Stock [Member]
Balance, December 31, 2021			$ 228	$ 164
Beginning balance, shares			229,501,661	164,435,829
Stock-based compensation
Compensation options
Shares issued for RSUs vested			$ 6	$ 1
Beginning balance, shares			5,767,218	933,750
Shares issued for warrant exercise			$ 10
Beginning balance, shares			10,416,667
Shares issued for interest payable			$ 20	$ 1
Beginning balance, shares			20,125,209	1,315,856
OCI
Net income (loss)
Balance	$ 264	$ 216	$ 264	$ 216
Beginning balance, shares	265,810,755	217,641,091	265,810,755	217,641,091
Non brokered shares issued for $0.30 CAD				$ 1
Beginning balance, shares				1,471,664
Stock subscription received for units
Special warrant shares issued for $0.30 CAD				$ 38
Beginning balance, shares				37,849,325
Contractor shares issued for $0.30 CAD				$ 1
Beginning balance, shares				1,218,000
Shares issued for Mill purchase				$ 10
Beginning balance, shares				10,416,667
Issue costs
Warrant valuation
Additional Paid-in Capital [Member]
Balance, December 31, 2021			$ 45,161,513	38,248,618
Stock-based compensation			1,050,105	161,107
Compensation options			111,971	264,435
Shares issued for RSUs vested			(6)	(1)
Shares issued for warrant exercise			907,080
Shares issued for interest payable			2,308,171	269,749
OCI
Net income (loss)
Balance	$ 49,538,834	$ 43,497,877	49,538,834	43,497,877
Non brokered shares issued for $0.30 CAD				352,854
Stock subscription received for units
Special warrant shares issued for $0.30 CAD				9,083,719
Contractor shares issued for $0.30 CAD				289,999
Shares issued for Mill purchase				1,970,254
Issue costs				(896,009)
Warrant valuation				(6,246,848)
Stock Subscriptions Payable [Member]
Balance, December 31, 2021
Stock-based compensation
Compensation options
Shares issued for RSUs vested
Shares issued for warrant exercise
Shares issued for interest payable
OCI
Net income (loss)
Balance
Non brokered shares issued for $0.30 CAD
Stock subscription received for units				1,775,790
Special warrant shares issued for $0.30 CAD				(1,775,790)
Contractor shares issued for $0.30 CAD
Shares issued for Mill purchase
Issue costs
Warrant valuation
AOCI Attributable to Parent [Member]
Balance, December 31, 2021			253,875
Stock-based compensation
Compensation options
Shares issued for RSUs vested
Shares issued for warrant exercise
Shares issued for interest payable
OCI			433,597	371,586
Net income (loss)
Balance	687,472	371,586	687,472	371,586
Non brokered shares issued for $0.30 CAD
Stock subscription received for units
Special warrant shares issued for $0.30 CAD
Contractor shares issued for $0.30 CAD
Shares issued for Mill purchase
Issue costs
Warrant valuation
Retained Earnings [Member]
Balance, December 31, 2021			(71,592,559)	(72,491,150)
Stock-based compensation
Compensation options
Shares issued for RSUs vested
Shares issued for warrant exercise
Shares issued for interest payable
OCI
Net income (loss)			(15,066,635)	9,173,895
Balance	$ (86,659,194)	$ (63,317,255)	$ (86,659,194)	(63,317,255)
Non brokered shares issued for $0.30 CAD
Special warrant shares issued for $0.30 CAD
Contractor shares issued for $0.30 CAD
Shares issued for Mill purchase
Issue costs
Warrant valuation

Condensed Interim Consolidated Statements of Changes in Shareholders' Deficiency (Unaudited) (Parenthetical)	Jun. 30, 2022 $ / shares
Non Brokered Shares [Member]
Class of Stock [Line Items]
Shares issued price per share	$ 0.30
Special Warrant [Member]
Class of Stock [Line Items]
Shares issued price per share	0.30
Contractor Shares [Member]
Class of Stock [Line Items]
Shares issued price per share	$ 0.30

Nature and Continuance of Operations

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature and Continuance of Operations

1. Nature and Continuance of Operations

Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies:

Basis of Presentation

Use of Estimates

Accounts receivable and prepaid expenses

6 Months Ended

Jun. 30, 2023

Credit Loss [Abstract]

Accounts receivable and prepaid expenses

3. Accounts receivable and prepaid expenses

Accounts receivable and prepaid expenses consists of the following:

	June 30,		December 31,
	2023		2022

Prepaid expenses and deposits	$	1,162,565	$	386,218
Environment protection agency overpayment (note 6)		60,000		170,729
Total	$	1,222,565	$	556,947

Equipment, Right-of-Use asset, and Process Plant

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Equipment, Right-of-Use asset, and Process Plant

4. Equipment, Right-of-Use asset, and Process Plant

Equipment consists of the following:

Schedule of Equipment

	June 30,			December 31,
	2023			2022

Equipment	$	980,575		$	920,571
Equipment, gross		980,575			920,571
Less accumulated depreciation		(445,791	)		(369,367	)
Equipment, net	$	534,784		$	551,204

Process Plant

The purchase of the mill has been valued at:

	-	Cash consideration given, comprised of $500,000 non-refundable deposit remitted on January 7, 2022 and $231,000 sales tax remitted on May 13, 2022, a total of $731,000 cash remitted.
	-	Value of common shares issued on May 13, 2022 at the market price of that day, a value of $1,970,264.
	-	Fair value of the warrants issued together with the inputs, as determined by a binomial model, resulted in a fair value of $1,273,032. See note 9.
	-	As a result, the total value of the mill at the time of purchase was determined to be $3,974,296, including $341,004 of spare parts inventory.

Process plant consists of the following:

Schedule of Plant Asset Consists

	June 30,		December 31,
	2023		2022

Plant purchase price less inventory	$	3,633,292	$	3,633,292
Ball mill purchase		745,626		-
Demobilization		2,204,539		2,201,414
Site preparation costs		3,408,933		2,296,266
Process Plant	$	9,992,390	$	8,130,972

Right-of-use asset consists of the following:

Schedule of Right-of-use Asset

	June 30,			December 31,
	2023			2022

Loader lease		114,920			-
Loader accumulated depreciation		(12,769	)		-
Right-of-use asset, net	$	102,151		$	-

Bunker Hill Mine and Mining Interests

6 Months Ended

Jun. 30, 2023

Extractive Industries [Abstract]

Bunker Hill Mine and Mining Interests

5. Bunker Hill Mine and Mining Interests

Bunker Hill Mine Purchase

The Company purchased the Bunker Hill Mine (the “Mine”) in January 2022, as described below.

The $5,400,000 contract cash paid at purchase was the $7,700,000 less the $2,000,000 deposit and $300,000 credit given by the seller for prior years’ maintenance payments.

The purchase of the mine has been valued on January 7, 2022:

	-	Contract purchase price of $7,700,000 less $300,000 credit by seller for prior maintenance payments.
	-	Net present value of water treatment cost recovery liability assumed of $6,402,425.
	-	Capitalized legal and closing costs of $444,785.
	-	As a result, the total value of the mine at the time of purchase was determined to be $14,247,210. The Company completed the purchase of the Mine on January 7, 2022. The terms of the purchase price were modified to $5,400,000 in cash, from $3,400,000 of cash and $2,000,000 of Common Shares. Concurrent with the purchase of the Mine, the Company assumed incremental liabilities of $8,000,000 to the EPA, consistent with the terms of the amended Settlement Agreement with the EPA that was executed in December 2021 (see “EPA Settlement Agreement” section below).

Management has determined the purchase to be an acquisition of a single asset.

Capitalized Development

Commencing on October 1, 2022, the Company capitalizes mine development. Through June 30, 2023, a total of $1,517,526 had been capitalized.

Sale of Mineral Properties

The carrying cost of the Mine is comprised of the following:

Schedule of Mining Interests

	June 30,			December 31,
	2023			2022

Bunker Hill Mine purchase	$	14,247,210		$	14,247,210
Capitalized development		1,517,526			1,447,435
Sale of mineral properties (royalty)		(1,973,840	)		-
Bunker Hill mine	$	13,790,896		$	15,694,645

Land purchase and lease

Environmental Protection Agency and Water Treatment Liabilities (“EPA”)

6 Months Ended

Jun. 30, 2023

Environmental Remediation Obligations [Abstract]

Environmental Protection Agency and Water Treatment Liabilities (“EPA”)

6. Environmental Protection Agency and Water Treatment Liabilities (“EPA”)

Historical Cost Recovery Payables - EPA

Date	Amount
Within 30 days of Settlement Agreement	$	2,000,000
November 1, 2024	$	3,000,000
November 1, 2025	$	3,000,000
November 1, 2026	$	3,000,000
November 1, 2027	$	3,000,000
November 1, 2028	$	3,000,000
November 1, 2029		$ 2,000,000 plus accrued interest

Water Treatment Charges – Idaho Department of Environmental Quality

Promissory Notes Payable and Convertible Debentures

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Promissory Notes Payable and Convertible Debentures

7. Promissory Notes Payable and Convertible Debentures

Promissory Notes

Project Finance Package with Sprott Private Resource Streaming & Royalty Corp. (“SRSR”)

On December 20, 2021, the Company executed a non-binding term sheet outlining a $50,000,000 project finance package with SRSR.

$8,000,000 Royalty Convertible Debenture

$6,000,000 Convertible Debenture (CD1)

$15,000,000 Series 2 Convertible Debenture (CD2)

Consistent with the approach above, the following table summarizes the key valuation inputs as at applicable valuation dates:

Schedule of Key Valuation Inputs


Reference (2)(4) (5)		Valuation date	Maturity date	Contractual Interest rate			Stock price (US$)		Expected equity volatility			Credit spread			Risk-free rate			Risk- adjusted rate
CD1 note(3)	(2)(4)(5)(3)	12-31-22	03-31-25		7.50	%		0.125		120	%		7.08	%		4.32	%		17.85	%
RCD note	(2)(4)(5)	12-31-22	03-31-25		9.00	%		0.125		120	%		7.08	%		4.32	%		17.85	%
CD2 note(3)	(2)(4)(5)(3)	12-31-22	03-31-25		10.50	%		0.125		120	%		7.08	%		4.32	%		19.76	%
CD1 note(3)	(2)(4)(5)(3)	03-31-23	03-31-25		7.50	%		0.082		115	%		11.22	%		4.06	%		21.33	%
RCD note(5)	(2)(4)(5)	03-31-23	03-31-25		9.00	%		0.082		115	%		11.22	%		4.06	%		21.33	%
CD2 note(3)	(2)(4)(5)(3)	03-31-23	03-31-25		10.50	%		0.082		115	%		11.22	%		4.06	%		23.20	%
RCD note	(2)(4)(5)	06-23-23	03-31-25		9.00	%		0.169		120	%		8.28	%		4.83	%		19.37	%
CD1 note(3)	(2)(4)(5)(3)	06-30-23	03-31-26		7.50	%		0.186		120	%		7.93	%		4.58	%		18.83	%
CD2 note(3)	(2)(4)(5)(3)	06-30-23	03-31-26		10.50	%		0.186		120	%		7.93	%		4.58	%		20.73	%

	(1)	The CD1 carried a Discount for Lack of Marketability (“DLOM”) of 5.0% as of the issuance date and as of June 30, 2023. The CD2 carried a DLOM of 10.0% as of the issuance date and June 30, 2023
	(2)	CD1 and RCD carry an instrument-specific spread of 7.23%, CD2 carries an instrument-specific spread of 9.32%
	(3)	The conversion price of the CD1 is $0.219 and CD2 is $0.226 as of June 30, 2023, and $0.219 and CD2 is $0.212 as of December 31, 2022
	(4)	A project risk rate of 13.0% was used for all scenarios of the RCD fair value computations
	(5)	The valuation of the RCD is driven by the aggregation of (i) the present value of future potential cash flow to the royalty holder, in the event that the RCD is converted to a royalty, utilizing an estimate of future metal sales and Monte Carlo simulations of future metal prices, and (ii) the computation of the present value assuming no conversion to the 1.85% gross revenue royalty. The valuation of (i) is compared to the valuation of (ii) for each simulation, with the higher value used in the aggregation to arrive at the fair value of the RCD. This results in an implied probability of the RCD being converted to the royalty, in the event that the Stream is advanced. Based on this methodology, as of June 30, 2023 (pre-modification), the implied probability of the RCD being converted to a 1.85% royalty, in the event that the Stream is advanced, was 77%. Credit spread, Risk-free rate, and Risk-adjusted rate shown for the RCD are applicable to the scenario where the Stream is not advanced. There are immaterial differences in these inputs for the scenario where the Stream is advanced.

The resulting fair values of the CD1, RCD, and CD2 at June 30, 2023, and as of December 31, 2022, were as follows:

Instrument Description	June 30, 2023		December 31, 2022
CD1	$	5,812,092	$	5,537,360
RCD		-		10,285,777
CD2		14,644,406		14,063,525
Total	$	20,456,498	$	29,886,662

The Company performs quarterly testing of the covenants in the CD1 and CD2 and was in compliance with all such covenants as of June 30, 2023.

$5,000,000 Bridge Loan

$46,000,000 Stream

$21,000,000 Debt Facility

Capital Stock, Warrants and Stock Options

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Capital Stock, Warrants and Stock Options

8. Capital Stock, Warrants and Stock Options

Authorized

The total authorized capital is as follows:

●	1,500,000,000 Common Shares with a par value of $0.000001 per Common Share; and
●	10,000,000 preferred shares with a par value of $0.000001 per preferred share

Issued and outstanding

Consistent with the approach above, the following table summarizes the key valuation inputs as at applicable valuation dates:

March 2023 special warrants	June 30, 2023			Grant Date
Expected life		1,001 days			1096 days
Volatility		24	%		24	%
Risk free interest rate		4.21	%		3.40	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.11
Fair value	$	12,845,643		$	4,536,020
Change in derivative liability	$	8,309,623

April 2022 special warrants issuance	June 30, 2023			December 31, 2022
Expected life		641 days			822 days
Volatility		120	%		120	%
Risk free interest rate		4.58	%		4.06	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	3,284,658		$	2,406,104
Change in derivative liability	$	878,554

April 2022 non-brokered issuance	June 30, 2023			December 31, 2022
Expected life		641 days			822 days
Volatility		120	%		120	%
Risk free interest rate		4.58	%		4.06	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	127,713		$	93,553
Change in derivative liability	$	34,160

June 2022 issuance	June 30, 2023			December 31, 2022
Expected life		641 days			822 days
Volatility		120	%		120	%
Risk free interest rate		4.58	%		3.72	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	105,701		$	77,429
Change in derivative liability	$	28,272

February 2021 issuance	June 30, 2023			December 31, 2022
Expected life		955 days			1,136 days
Volatility		120	%		120	%
Risk free interest rate		4.21	%		3.72	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	1,810,642		$	1,335,990
Change in derivative liability	$	474,652

August 2020 issuance	June 30, 2023			December 31, 2022
Expected life		62 days			243 days
Volatility		100	%		120	%
Risk free interest rate		4.58	%		4.06	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	1		$	903,697
Change in derivative liability	$	(903,696	)

June 2019 issuance	June 30, 2023			December 31, 2022
Expected life		915 days			1,096 days
Volatility		115	%		120	%
Risk free interest rate		4.12	%		3.82	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	961,686		$	725,737
Change in derivative liability	$	235,949

August 2019 issuance	June 30, 2023			December 31, 2022
Expected life		915 days			1,096 days
Volatility		115	%		120	%
Risk free interest rate		4.21	%		3.82	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	1,477,994		$	1,115,369
Change in derivative liability	$	362,625

Outstanding warrants at June 30, 2023 and June 30, 2022 were as follows:

Schedule of Warrant Activity

				Weighted		Weighted
				average		average
	Number of			exercise price		grant date
	warrants			(C$)		value ($)

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, June 30, 2022		162,129,064			0.49		0.17

Balance, December 31, 2022		162,129,064		$	0.49	$	0.17
Exercised		(10,416,667	)		0.11		0.12
Balance, June 30, 2023		151,712,397		$	0.50	$	0.17

During the six months ended June 30, 2023, 10,416,667 May 2022 Teck warrants were exercised. During the six months ended June 30, 2022, 239,284 February 2020 broker warrants expired.

At June 30, 2023, the following warrants were outstanding:

	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
				151,712,397		151,712,379

Compensation options

At June 30, 2023, the following broker options were outstanding:

Schedule of Compensation Options

			Weighted
	Number of		average
	broker		exercise price
	options		(C$)

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
Issued – March 2023 Compensation Options		2,070,258		0.15
Balance, June 30, 2023		7,541,057		0.28

(i)	The grant date fair value of the March 2023 Compensation Options were estimated at $111,971 using the Black-Scholes valuation model with the following underlying assumptions:

Grant Date		Risk free interest rate				Dividend yield				Volatility				Stock price				Weighted average life
March 2023			3.4	%			0	%			120	%			C$0.11				3 years

Schedule of Broker Exercise Prices

	Exercise		Number of		Grant date 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
March 27, 2026^(v)	$	0.15		2,070,258	$	111,971
				7,541,057	$	966,477

i)	Exercisable into one August 2020 Unit
ii)	Exercisable into one February 2021 Unit
iii)	Exercisable into one April 2022 Unit
iv)	Exercisable into one March 2023 Unit

Stock options

The following table summarizes the stock option activity during the six months ended June 30, 2023:

Schedule of Stock Options

				Weighted
				average
	Number of			exercise price
	stock options			(C$)

Balance, December 31, 2022		9,053,136		$	0.58
Granted		700,000		$	0.15
Expired, May 1, 2022		(47,000	)	$	10.00
Forfeited		(150,000	)	$	0.15
Expired, December 31, 2022		(235,500	)	$	0.50
Balance, December 31, 2022		9,320,636		$	0.51
Balance, June 30, 2023		9,320,636		$	0.51

The following table reflects the actual stock options issued and outstanding as of June 30, 2023:

					Number of
	remaining		Number of		options
Exercise	contractual		options		vested		Grant date
price (C$)	life (years)		outstanding		(exercisable)		fair value ($)
0.60		0.25		200,000		200,000		52,909
0.60		1.32		1,575,000		1,575,000		435,069
0.55		1.81		5,957,659		4,468,245		1,536,764
0.335		2.64		1,037,977		1,037,977		204,213
0.15		0.41		150,000		150,000		14,465
0.15		4.40		400,000		200,000		37,387
				9,320,636		7,631,222	$	2,280,807

Restricted Share Units

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Restricted Share Units

9. Restricted Share Units

Effective March 25, 2020, the Board of Directors approved a Restricted Share Unit (“RSU”) Plan to grant RSUs to its officers, directors, key employees and consultants.

The following table summarizes the RSU activity during the six months ended June 30, 2023:

Schedule of Restricted Share Units

				Weighted
				average
				grant date
				fair value
	Number of			per share
	shares			(C$)

Unvested as at December 31, 2021		576,000		$	0.62
Granted		6,620,641			0.17
Vested		(2,373,900	)		0.18
Unvested as at December 31, 2022		4,822,741		$	0.22
Granted		4,109,637			0.24
Vested		(5,767,218	)		0.24
Unvested as at June 30, 2023		3,165,160		$	0.22

	(i)	On January 10, 2022, the Company granted 500,000 RSUs to a consultant of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $122,249 for the six months ended June 30, 2022, which is included in operation and administration expenses on the condensed consolidated statements of (loss) income and comprehensive (loss) income.

	(ii)	On April 29, 2022, the Company granted 76,750 RSUs to certain consultants of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $16,800 for the year ended December, 2022, which is included in operation and administration expenses on the consolidated statements of (loss) income and comprehensive (loss) income.

	(iii)	On June 30, 2022, the Company granted 15,000 RSUs to a consultant of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $2,328 for the year ended December 31, 2022, which is included in operation and administration expenses on the consolidated statements of (loss) income and comprehensive (loss) income.

	(iv)	On June 1, 2023, the Company granted 4,067,637 RSUs to executives and employees of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $717,660 for the six months ended June 30, 2023, which is included in operation and administration expenses on the consolidated statements of (loss) income and comprehensive (loss) income.

	(v)	On June 4, 2023, the Company granted 42,000 RSUs to a consultant of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $7,825 for the six months ended June 30, 2023, which is included in operation and administration expenses on the consolidated statements of (loss) income and comprehensive (loss) income.

Deferred Share Units

6 Months Ended

Jun. 30, 2023

Deferred Share Units

Deferred Share Units

10. Deferred Share Units

The following table summarizes the DSU activity during the six months ended June 30, 2023 and 2022:

Schedule of Deferred Share Units

				Weighted
				average
				grant date
				fair value
	Number of			per share
	shares			(C$)

Unvested as at December 31, 2021		5,625,000		$	1.03
Vested (i)		(3,125,000	)		1.03
Unvested as at June 30, 2022		2,500,000		$	1.03

Unvested as at December 31, 2022		2,710,000			0.97
Vested (ii)		(1,250,000	)		1.03
Unvested as at December 31 2022 and June 30, 2023		1,460,000		$	1.00

(i)

(ii)

On April 21, 2023, 1,250,000 DSUs for one of the Company’s Directors vested.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. Commitments and Contingencies

Deferred tax liability

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Deferred tax liability

12. Deferred tax liability

Related party transactions

6 Months Ended

Jun. 30, 2023

Related party transactions

13. Related party transactions

Schedule of Related Party Transactions

	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2023		2022		2023		2022
Consulting fees & wages	$	357,468	$	486,241	$	572,917	$	1,583,850

At June 30, 2023 and June 30, 2022, $52,148 and $1,049,304, respectively is owed to key management personnel with all amounts included in accounts payable and accrued liabilities.

Subsequent Events

6 Months Ended

Jun. 30, 2023

Subsequent Events [Abstract]

Subsequent Events

14. Subsequent Events

Conversion of March 2023 Special Warrants

2023 RSU Grant

On July 4, 2023, 6,735,354 RSU’s were granted to employees and executives of the Company. The RSU awards vest in one-third increments on March 31 of 2024, 2025 and 2026.

2023 DSU Grant

On July 4, 2023, 1,611,826 DSU’s were granted to directors of the Company. The DSU awards vest immediately.

On July 6, 2023, 245,454 DSU’s were granted to a director of the Company. The DSU award vests on July 6, 2024.

Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed interim consolidated financial statements of the Company 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’ deficiency, 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 Company’s Annual Report on Form 10-K, which contains the annual audited consolidated financial statements and notes thereto, together with the Management’s Discussion and Analysis, for the year ended December 31, 2022. The interim results for the period ended June 30, 2023, are not necessarily indicative of the results for the full fiscal year. The unaudited interim condensed consolidated financial statements are presented in United States dollars, which is the Company’s functional currency.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes for items such as mineral reserves, useful lives and depreciation methods, potential impairment of long-lived assets, sale of mineral properties for the accounting of the conversion of the royalty convertible debenture (the “RCD”), deferred income taxes, settlement pricing of commodity sales, fair value of stock based compensation, accrued liabilities, estimation of asset retirement obligations and reclamation liabilities, convertible debentures, stream obligation, and warrants. Estimates are based on historical experience and various other assumptions that the Company believes to be reasonable. Actual results could differ from those estimates.

Accounts receivable and prepaid expenses (Tables)

6 Months Ended

Jun. 30, 2023

Credit Loss [Abstract]

Schedule of Accounts receivable and prepaid expenses

Accounts receivable and prepaid expenses consists of the following:

	June 30,		December 31,
	2023		2022

Prepaid expenses and deposits	$	1,162,565	$	386,218
Environment protection agency overpayment (note 6)		60,000		170,729
Total	$	1,222,565	$	556,947

Equipment, Right-of-Use asset, and Process Plant (Tables)

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Schedule of Equipment

Equipment consists of the following:

Schedule of Equipment

	June 30,			December 31,
	2023			2022

Equipment	$	980,575		$	920,571
Equipment, gross		980,575			920,571
Less accumulated depreciation		(445,791	)		(369,367	)
Equipment, net	$	534,784		$	551,204

Schedule of Plant Asset Consists

Process plant consists of the following:

Schedule of Plant Asset Consists

	June 30,		December 31,
	2023		2022

Plant purchase price less inventory	$	3,633,292	$	3,633,292
Ball mill purchase		745,626		-
Demobilization		2,204,539		2,201,414
Site preparation costs		3,408,933		2,296,266
Process Plant	$	9,992,390	$	8,130,972

Schedule of Right-of-use Asset

Right-of-use asset consists of the following:

Schedule of Right-of-use Asset

	June 30,			December 31,
	2023			2022

Loader lease		114,920			-
Loader accumulated depreciation		(12,769	)		-
Right-of-use asset, net	$	102,151		$	-

Bunker Hill Mine and Mining Interests (Tables)

6 Months Ended

Jun. 30, 2023

Extractive Industries [Abstract]

Schedule of Mining Interests

The carrying cost of the Mine is comprised of the following:

Schedule of Mining Interests

	June 30,			December 31,
	2023			2022

Bunker Hill Mine purchase	$	14,247,210		$	14,247,210
Capitalized development		1,517,526			1,447,435
Sale of mineral properties (royalty)		(1,973,840	)		-
Bunker Hill mine	$	13,790,896		$	15,694,645

Environmental Protection Agency and Water Treatment Liabilities (“EPA”) (Tables)

6 Months Ended

Jun. 30, 2023

Environmental Remediation Obligations [Abstract]

Schedule of Amended Settlement Environmental Protection Agency Agreement

Date	Amount
Within 30 days of Settlement Agreement	$	2,000,000
November 1, 2024	$	3,000,000
November 1, 2025	$	3,000,000
November 1, 2026	$	3,000,000
November 1, 2027	$	3,000,000
November 1, 2028	$	3,000,000
November 1, 2029		$ 2,000,000 plus accrued interest

Promissory Notes Payable and Convertible Debentures (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Key Valuation Inputs

Consistent with the approach above, the following table summarizes the key valuation inputs as at applicable valuation dates:

Schedule of Key Valuation Inputs


Reference (2)(4) (5)		Valuation date	Maturity date	Contractual Interest rate			Stock price (US$)		Expected equity volatility			Credit spread			Risk-free rate			Risk- adjusted rate
CD1 note(3)	(2)(4)(5)(3)	12-31-22	03-31-25		7.50	%		0.125		120	%		7.08	%		4.32	%		17.85	%
RCD note	(2)(4)(5)	12-31-22	03-31-25		9.00	%		0.125		120	%		7.08	%		4.32	%		17.85	%
CD2 note(3)	(2)(4)(5)(3)	12-31-22	03-31-25		10.50	%		0.125		120	%		7.08	%		4.32	%		19.76	%
CD1 note(3)	(2)(4)(5)(3)	03-31-23	03-31-25		7.50	%		0.082		115	%		11.22	%		4.06	%		21.33	%
RCD note(5)	(2)(4)(5)	03-31-23	03-31-25		9.00	%		0.082		115	%		11.22	%		4.06	%		21.33	%
CD2 note(3)	(2)(4)(5)(3)	03-31-23	03-31-25		10.50	%		0.082		115	%		11.22	%		4.06	%		23.20	%
RCD note	(2)(4)(5)	06-23-23	03-31-25		9.00	%		0.169		120	%		8.28	%		4.83	%		19.37	%
CD1 note(3)	(2)(4)(5)(3)	06-30-23	03-31-26		7.50	%		0.186		120	%		7.93	%		4.58	%		18.83	%
CD2 note(3)	(2)(4)(5)(3)	06-30-23	03-31-26		10.50	%		0.186		120	%		7.93	%		4.58	%		20.73	%

	(1)	The CD1 carried a Discount for Lack of Marketability (“DLOM”) of 5.0% as of the issuance date and as of June 30, 2023. The CD2 carried a DLOM of 10.0% as of the issuance date and June 30, 2023
	(2)	CD1 and RCD carry an instrument-specific spread of 7.23%, CD2 carries an instrument-specific spread of 9.32%
	(3)	The conversion price of the CD1 is $0.219 and CD2 is $0.226 as of June 30, 2023, and $0.219 and CD2 is $0.212 as of December 31, 2022
	(4)	A project risk rate of 13.0% was used for all scenarios of the RCD fair value computations
	(5)	The valuation of the RCD is driven by the aggregation of (i) the present value of future potential cash flow to the royalty holder, in the event that the RCD is converted to a royalty, utilizing an estimate of future metal sales and Monte Carlo simulations of future metal prices, and (ii) the computation of the present value assuming no conversion to the 1.85% gross revenue royalty. The valuation of (i) is compared to the valuation of (ii) for each simulation, with the higher value used in the aggregation to arrive at the fair value of the RCD. This results in an implied probability of the RCD being converted to the royalty, in the event that the Stream is advanced. Based on this methodology, as of June 30, 2023 (pre-modification), the implied probability of the RCD being converted to a 1.85% royalty, in the event that the Stream is advanced, was 77%. Credit spread, Risk-free rate, and Risk-adjusted rate shown for the RCD are applicable to the scenario where the Stream is not advanced. There are immaterial differences in these inputs for the scenario where the Stream is advanced.

Schedule of Fair Value Derivative Liability

The resulting fair values of the CD1, RCD, and CD2 at June 30, 2023, and as of December 31, 2022, were as follows:

Instrument Description	June 30, 2023		December 31, 2022
CD1	$	5,812,092	$	5,537,360
RCD		-		10,285,777
CD2		14,644,406		14,063,525
Total	$	20,456,498	$	29,886,662

Capital Stock, Warrants and Stock Options (Tables)

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Schedule of Estimated Fair Value of Special Warrant Liabilities

March 2023 special warrants	June 30, 2023			Grant Date
Expected life		1,001 days			1096 days
Volatility		24	%		24	%
Risk free interest rate		4.21	%		3.40	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.11
Fair value	$	12,845,643		$	4,536,020
Change in derivative liability	$	8,309,623

Schedule of Estimated Using the Binomial Model to Determine the Fair Value of Warrant Liabilities

April 2022 special warrants issuance	June 30, 2023			December 31, 2022
Expected life		641 days			822 days
Volatility		120	%		120	%
Risk free interest rate		4.58	%		4.06	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	3,284,658		$	2,406,104
Change in derivative liability	$	878,554

April 2022 non-brokered issuance	June 30, 2023			December 31, 2022
Expected life		641 days			822 days
Volatility		120	%		120	%
Risk free interest rate		4.58	%		4.06	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	127,713		$	93,553
Change in derivative liability	$	34,160

June 2022 issuance	June 30, 2023			December 31, 2022
Expected life		641 days			822 days
Volatility		120	%		120	%
Risk free interest rate		4.58	%		3.72	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	105,701		$	77,429
Change in derivative liability	$	28,272

February 2021 issuance	June 30, 2023			December 31, 2022
Expected life		955 days			1,136 days
Volatility		120	%		120	%
Risk free interest rate		4.21	%		3.72	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	1,810,642		$	1,335,990
Change in derivative liability	$	474,652

August 2020 issuance	June 30, 2023			December 31, 2022
Expected life		62 days			243 days
Volatility		100	%		120	%
Risk free interest rate		4.58	%		4.06	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	1		$	903,697
Change in derivative liability	$	(903,696	)

June 2019 issuance	June 30, 2023			December 31, 2022
Expected life		915 days			1,096 days
Volatility		115	%		120	%
Risk free interest rate		4.12	%		3.82	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	961,686		$	725,737
Change in derivative liability	$	235,949

August 2019 issuance	June 30, 2023			December 31, 2022
Expected life		915 days			1,096 days
Volatility		115	%		120	%
Risk free interest rate		4.21	%		3.82	%
Dividend yield		0	%		0	%
Share price (C$)	$	0.23		$	0.17
Fair value	$	1,477,994		$	1,115,369
Change in derivative liability	$	362,625

Schedule of Warrant Activity

Outstanding warrants at June 30, 2023 and June 30, 2022 were as follows:

Schedule of Warrant Activity

				Weighted		Weighted
				average		average
	Number of			exercise price		grant date
	warrants			(C$)		value ($)

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, June 30, 2022		162,129,064			0.49		0.17

Balance, December 31, 2022		162,129,064		$	0.49	$	0.17
Exercised		(10,416,667	)		0.11		0.12
Balance, June 30, 2023		151,712,397		$	0.50	$	0.17

Schedule of Warrants Outstanding Exercise Price

At June 30, 2023, the following warrants were outstanding:

	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
				151,712,397		151,712,379

Schedule of Compensation Options

At June 30, 2023, the following broker options were outstanding:

Schedule of Compensation Options

			Weighted
	Number of		average
	broker		exercise price
	options		(C$)

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
Issued – March 2023 Compensation Options		2,070,258		0.15
Balance, June 30, 2023		7,541,057		0.28

(i)	The grant date fair value of the March 2023 Compensation Options were estimated at $111,971 using the Black-Scholes valuation model with the following underlying assumptions:

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
March 2023			3.4	%			0	%			120	%			C$0.11				3 years

Schedule of Broker Exercise Prices

	Exercise		Number of		Grant date 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
March 27, 2026^(v)	$	0.15		2,070,258	$	111,971
				7,541,057	$	966,477

i)	Exercisable into one August 2020 Unit
ii)	Exercisable into one February 2021 Unit
iii)	Exercisable into one April 2022 Unit
iv)	Exercisable into one March 2023 Unit

Schedule of Stock Options

The following table summarizes the stock option activity during the six months ended June 30, 2023:

Schedule of Stock Options

				Weighted
				average
	Number of			exercise price
	stock options			(C$)

Balance, December 31, 2022		9,053,136		$	0.58
Granted		700,000		$	0.15
Expired, May 1, 2022		(47,000	)	$	10.00
Forfeited		(150,000	)	$	0.15
Expired, December 31, 2022		(235,500	)	$	0.50
Balance, December 31, 2022		9,320,636		$	0.51
Balance, June 30, 2023		9,320,636		$	0.51

Schedule of Actual Stock Options Issued and Outstanding

The following table reflects the actual stock options issued and outstanding as of June 30, 2023:

					Number of
	remaining		Number of		options
Exercise	contractual		options		vested		Grant date
price (C$)	life (years)		outstanding		(exercisable)		fair value ($)
0.60		0.25		200,000		200,000		52,909
0.60		1.32		1,575,000		1,575,000		435,069
0.55		1.81		5,957,659		4,468,245		1,536,764
0.335		2.64		1,037,977		1,037,977		204,213
0.15		0.41		150,000		150,000		14,465
0.15		4.40		400,000		200,000		37,387
				9,320,636		7,631,222	$	2,280,807

Restricted Share Units (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Restricted Share Units

The following table summarizes the RSU activity during the six months ended June 30, 2023:

Schedule of Restricted Share Units

				Weighted
				average
				grant date
				fair value
	Number of			per share
	shares			(C$)

Unvested as at December 31, 2021		576,000		$	0.62
Granted		6,620,641			0.17
Vested		(2,373,900	)		0.18
Unvested as at December 31, 2022		4,822,741		$	0.22
Granted		4,109,637			0.24
Vested		(5,767,218	)		0.24
Unvested as at June 30, 2023		3,165,160		$	0.22

	(i)	On January 10, 2022, the Company granted 500,000 RSUs to a consultant of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $122,249 for the six months ended June 30, 2022, which is included in operation and administration expenses on the condensed consolidated statements of (loss) income and comprehensive (loss) income.

	(ii)	On April 29, 2022, the Company granted 76,750 RSUs to certain consultants of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $16,800 for the year ended December, 2022, which is included in operation and administration expenses on the consolidated statements of (loss) income and comprehensive (loss) income.

	(iii)	On June 30, 2022, the Company granted 15,000 RSUs to a consultant of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $2,328 for the year ended December 31, 2022, which is included in operation and administration expenses on the consolidated statements of (loss) income and comprehensive (loss) income.

	(iv)	On June 1, 2023, the Company granted 4,067,637 RSUs to executives and employees of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $717,660 for the six months ended June 30, 2023, which is included in operation and administration expenses on the consolidated statements of (loss) income and comprehensive (loss) income.

	(v)	On June 4, 2023, the Company granted 42,000 RSUs to a consultant of the Company, vested immediately. The vesting of these RSUs resulted in stock-based compensation of $7,825 for the six months ended June 30, 2023, which is included in operation and administration expenses on the consolidated statements of (loss) income and comprehensive (loss) income.

Deferred Share Units (Tables)

6 Months Ended

Jun. 30, 2023

Deferred Share Units

Schedule of Deferred Share Units

The following table summarizes the DSU activity during the six months ended June 30, 2023 and 2022:

Schedule of Deferred Share Units

				Weighted
				average
				grant date
				fair value
	Number of			per share
	shares			(C$)

Unvested as at December 31, 2021		5,625,000		$	1.03
Vested (i)		(3,125,000	)		1.03
Unvested as at June 30, 2022		2,500,000		$	1.03

Unvested as at December 31, 2022		2,710,000			0.97
Vested (ii)		(1,250,000	)		1.03
Unvested as at December 31 2022 and June 30, 2023		1,460,000		$	1.00

(i)

(ii)

On April 21, 2023, 1,250,000 DSUs for one of the Company’s Directors vested.

Related party transactions (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Related Party Transactions

	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2023		2022		2023		2022
Consulting fees & wages	$	357,468	$	486,241	$	572,917	$	1,583,850

Nature and Continuance of Operations (Details Narrative)	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Entity incorporation, state or country code	NV

Schedule of Accounts receivable and prepaid expenses (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Credit Loss [Abstract]
Prepaid expenses and deposits	$ 1,162,565	$ 386,218
Environment protection agency overpayment (note 6)	60,000	170,729
Total	$ 1,222,565	$ 556,947

Schedule of Equipment (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Equipment, gross	$ 980,575	$ 920,571
Less accumulated depreciation	(445,791)	(369,367)
Equipment, net	534,784	551,204
Equipment [Member]
Property, Plant and Equipment [Line Items]
Equipment, gross	$ 980,575	$ 920,571

Schedule of Plant Asset Consists (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Plant purchase price less inventory	$ 3,633,292	$ 3,633,292
Ball mill purchase	745,626
Demobilization	2,204,539	2,201,414
Site preparation costs	3,408,933	2,296,266
Process Plant	$ 9,992,390	$ 8,130,972

Schedule of Right-of-use Asset (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Loader lease	$ 114,920
Loader accumulated depreciation	(12,769)
Right-of-use asset, net	$ 102,151

Equipment, Right-of-Use asset, and Process Plant (Details Narrative) - USD ($)			3 Months Ended		6 Months Ended
	Jun. 30, 2023	May 13, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Jan. 07, 2022
Property, Plant and Equipment [Line Items]
Depreciation expenses					$ 89,193	$ 129,445
Cash remitted					60,004	161,558
Value of warrants issued					9,019,987	(11,223,219)
Payments for deposits					19,000,000
Depreciation expenses lease			$ 6,385	$ 24,442	12,769	52,353
Ball Mill [Member]
Property, Plant and Equipment [Line Items]
Purchase payments	$ 745,626
Teck Resources Limited [Member]
Property, Plant and Equipment [Line Items]
Non-refundable deposit							$ 500,000
Sales tax paid		$ 231,000
Cash remitted		731,000
Value of shares issued		$ 1,970,264
Value of warrants issued					1,273,032
Total value					3,974,296
Spare parts inventory	341,004		341,004		341,004
D'Angelo International LLC [Member]
Property, Plant and Equipment [Line Items]
Purchase payments	545,626
Payments for deposits	$ 100,000
Equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciation expenses			$ 31,732	$ 38,692	$ 76,424	$ 77,091

Schedule of Mining Interests (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Extractive Industries [Abstract]
Bunker Hill Mine purchase	$ 14,247,210	$ 14,247,210
Capitalized development	1,517,526	1,447,435
Sale of mineral properties (royalty)	(1,973,840)
Bunker Hill mine	$ 13,790,896	$ 15,694,645

Bunker Hill Mine and Mining Interests (Details Narrative) - USD ($)						3 Months Ended			6 Months Ended
	Jun. 23, 2023	Mar. 03, 2022	Jan. 07, 2022	Jan. 07, 2022	Nov. 20, 2020	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Reserve Quantities [Line Items]
Payments for deposits									$ 19,000,000
Mine at time of purchase						$ 14,247,210			14,247,210		$ 14,247,210
Gain on extinguishment of debt						99,569			99,569
Land purchase		$ 202,000								$ 202,000
Monthly payments							$ 10,000
C and E Tree Farm LLC [Member] \| Through February 2026 [Member]
Reserve Quantities [Line Items]
Monthly payments									10,000
C and E Tree Farm LLC [Member] \| Through March 1, 2026 [Member]
Reserve Quantities [Line Items]
Option to purchase land						3,129,500			3,129,500
Royalty Convertible Debenture [Member]
Reserve Quantities [Line Items]
Capitalized cost			1.85%
RCD Note [Member]
Reserve Quantities [Line Items]
Capitalized cost				1.85%
Gain on extinguishment of debt	$ 6,980,932
Mine Development [Member]
Reserve Quantities [Line Items]
Capitalized cost			$ 1,517,526	$ 1,517,526
Amended Agreement [Member], Placer Mining Corp [Member]
Reserve Quantities [Line Items]
Purchases price consideration					$ 7,700,000
Payable in cash					5,700,000
Remaining payments purchase assets					300,000
Consideration shares					2,000,000
Contract purchase price					2,000,000
Amended Agreement [Member], Placer Mining Corp [Member] \| Minimum [Member]
Reserve Quantities [Line Items]
Payable in cash					3,400,000
Number shares issued of common shares					$ 2,000,000
Environmental Protection Agency Agreement [Member]
Reserve Quantities [Line Items]
Payable in cash			5,400,000
Payments purchase asset			3,400,000
Incremental Liabilities			8,000,000	8,000,000		$ 17,000,000			$ 17,000,000
Environmental Protection Agency Agreement [Member] \| Common Stock [Member]
Reserve Quantities [Line Items]
Remaining payments purchase assets			2,000,000
EPA Settlement Agreement[Member], Placer Mining Corp [Member]
Reserve Quantities [Line Items]
Payable in cash			5,400,000
Contract purchase price			7,700,000
Payments for deposits			2,000,000
Credit by seller for prior maintenance payments			300,000	300,000
Net present value of water treatment cost recovery liability assumed			6,402,425	6,402,425
Capitalized legal and closing costs			444,785	444,785
Mine at time of purchase			$ 14,247,210	$ 14,247,210

Schedule of Amended Settlement Environmental Protection Agency Agreement (Details) - Environmental Protection Agency Agreement [Member]	Jun. 30, 2023 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Within 30 days of Settlement Agreement	$ 2,000,000
November 1, 2024	3,000,000
November 1, 2025	3,000,000
November 1, 2026	3,000,000
November 1, 2027	3,000,000
November 1, 2028	3,000,000
November 1, 2029	$ 2,000,000

Environmental Protection Agency and Water Treatment Liabilities (“EPA”) (Details Narrative) - USD ($)		3 Months Ended	6 Months Ended	12 Months Ended
	Jan. 07, 2022	Jun. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Site Contingency [Line Items]
Payments for deposits			$ 19,000,000
Liabilities current		$ 18,353,350	18,353,350	$ 10,155,582
Monthly fee			20,000
Restricted cash		6,476,000	6,476,000	6,476,000	$ 9,476,000
Discount amortization expense		396,663	770,969
Environment protection agency cost recovery liability, net of discount		8,712,435	8,712,435
Interest payable		154,743	154,743
Monthly instalments		100,000	100,000
Monthly costs water treatment charges			100,000
Prepaid expense		60,000	60,000	170,729
Third Party [Member]
Site Contingency [Line Items]
Payment bond			4,475,000
Bunker Hill Mine [Member]
Site Contingency [Line Items]
Capitalized carring value		6,402,425	6,402,425
Liabilities current		3,000,000	3,000,000
Liabilities non current		5,000,000	5,000,000
Discount purchase price			3,402,425
Environmental Protection Agency Agreement [Member]
Site Contingency [Line Items]
Payments for environmental liabilities			20,000,000
Cost recovery payable outstanding						$ 11,000,000
Cost recovery liabilities not recogized						$ 8,000,000
Discount on debt	$ 8,000,000	17,000,000	17,000,000
Environmental Protection Agency Agreement [Member] \| Maximum [Member]
Site Contingency [Line Items]
Discount on debt		8,000,000	8,000,000
Environmental Protection Agency Agreement [Member] \| Common Stock [Member]
Site Contingency [Line Items]
Remaining payments purchase assets	$ 2,000,000
Environmental Protection Agency Agreement [Member] \| 30 Days After Agreement Signed [Member]
Site Contingency [Line Items]
Payments for environmental liabilities			1,000,000
Environmental Protection Agency Agreement [Member] \| November 1, 2018 [Member]
Site Contingency [Line Items]
Payments for environmental liabilities			2,000,000
Environmental Protection Agency Agreement [Member] \| Next Five Anniversaries [Member]
Site Contingency [Line Items]
Payments for environmental liabilities			3,000,000
Environmental Protection Agency Agreement [Member] \| November 1, 2024 [Member]
Site Contingency [Line Items]
Payments for environmental liabilities			2,000,000
EPA Settlement Agreement Amendment [Member]
Site Contingency [Line Items]
Payment bond			17,000,000
Payment to amended settlement				$ 17,000,000
Letter of credit		2,001,000	2,001,000
Secured deposits		$ 6,476,000	6,476,000
EPA Settlement Agreement Amendment [Member] \| Payment Bond One [Member]
Site Contingency [Line Items]
Payment bond			9,999,000
EPA Settlement Agreement Amendment [Member] \| Payment Bond Two [Member]
Site Contingency [Line Items]
Payment bond			$ 5,000,000

Schedule of Key Valuation Inputs (Details)

6 Months Ended

Jun. 30, 2023

$ / shares

Mar. 31, 2023

$ / shares

Schedule of Key Valuation Inputs (Details) (Parenthetical)	Jun. 30, 2023 $ / shares	Dec. 31, 2022 $ / shares
CD1 Note [Member]
Short-Term Debt [Line Items]
RCD2	5.0
Conversion price	$ 0.219	$ 0.219
CD2 Note [Member]
Short-Term Debt [Line Items]
RCD2	10.0
CD2 Note [Member] \| Measurement Input, Credit Spread [Member]
Short-Term Debt [Line Items]
RCD2	9.32
CD1 and RCD [Member] \| Measurement Input, Credit Spread [Member]
Short-Term Debt [Line Items]
RCD2	7.23
CD1 Note Two [Member]
Short-Term Debt [Line Items]
Conversion price	$ 0.226	$ 0.212
RCD Note [Member]
Short-Term Debt [Line Items]
Percentage of royalty revenue	1.85%
RCD Note [Member] \| Measurement Input Project Risk Rate [Member]
Short-Term Debt [Line Items]
RCD2	13.0
RCD Note [Member] \| Measurement Input, Option Volatility [Member]
Short-Term Debt [Line Items]
RCD2	77

Schedule of Fair Value Derivative Liability (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Total Fair Value	$ 20,456,498	$ 29,886,662
CD1 Note [Member]
Short-Term Debt [Line Items]
Total Fair Value	5,812,092	5,537,360
RCD Note [Member]
Short-Term Debt [Line Items]
Total Fair Value		10,285,777
CD2 Note [Member]
Short-Term Debt [Line Items]
Total Fair Value	$ 14,644,406	$ 14,063,525

Promissory Notes Payable and Convertible Debentures (Details Narrative)												1 Months Ended		3 Months Ended		6 Months Ended
	Jun. 23, 2023 USD ($)	Jun. 23, 2023 USD ($)	May 23, 2023 USD ($)	Feb. 21, 2023 USD ($)	Dec. 06, 2022 USD ($)	Jun. 17, 2022 USD ($) $ / shares	Mar. 03, 2022 USD ($)	Jan. 28, 2022 USD ($)	Jan. 07, 2022 USD ($)	Dec. 20, 2021 USD ($)	Sep. 22, 2021 USD ($)	Jun. 30, 2023 USD ($) $ / shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) $ / shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) $ / shares	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) $ / shares	Jan. 28, 2022 $ / shares
Short-Term Debt [Line Items]
Interest rate												15.00%		15.00%		15.00%
Debt face amount			$ 21,000,000
Gain on extinguishment of debt														$ 99,569		$ 99,569
Convertible debt						$ 66,000,000
Notes Payable, Current												$ 1,095,253		1,095,253		1,095,253		$ 1,500,000
Interest Expense														$ 1,388,420	382,370	$ 2,713,049	1,117,607
Project finance package convertible debenture										$ 50,000,000
Project financing fee										51,000,000
Project finance package amount			67,000,000
Debt amount available under stream	$ 46,000,000		46,000,000
Previously proposed			37,000,000
Gross proceeds received			9,000,000
Payments of financing costs		$ 254,220
Proceeds from lines of credit		21,000,000
Interest rate												11.60%		11.60%		11.60%
[custom:GainOnFairValueOfConvertibleDebtDerivatives]														$ (1,884,232)	1,813,456	$ (194,531)	1,739,987
[custom:GainsLossesOnDebtSettlement]														18,803		268,889
Gains loss on extinguishment debt														(99,569)		(99,569)
Funding stream description	On June 23, 2023, all conditions were met for the closing of the Stream, and $46,000,000 was advanced to the Company. The Stream applies to 10% of all payable metals sold until a minimum quantity of metal is delivered consisting of, individually, 63.5 million pounds of zinc, 40.4 million pounds of lead, and 1.2 million ounces of silver (subsequently amended, as described below). Thereafter, the Stream would apply to 2% of payable metals sold. The delivery price of streamed metals will be 20% of the applicable spot price. The Company may buy back 50% of the Stream Amount at a 1.40x multiple of the Stream Amount between the second and third anniversary of the date of funding, and at a 1.65x multiple of the Stream Amount between the third and fourth anniversary of the date of funding
Debt instrument transaction cost	$ 824,156
Stream debenture non current	$ 45,175,844	45,175,844										$ 45,260,844		45,260,844		45,260,844
Other expenses														85,000	0	85,000	0
Other Comprehensive Income (Loss) [Member]
Short-Term Debt [Line Items]
[custom:GainOnFairValueOfConvertibleDebtDerivatives]														373,415	371,255	433,597	371,255
Consolidated Balance Sheets [Member]
Short-Term Debt [Line Items]
Interest Expense														670,562	348,574	1,347,411	588,738
Interest payable current																		691,890
Convertible Debt [Member]
Short-Term Debt [Line Items]
Maturity date	Jun. 23, 2027
Debt face amount	$ 21,000,000	$ 21,000,000				$ 15,000,000		$ 6,000,000
Convertible debt										37,000,000
Debt advance payment	$ 5,000,000
Increase in debt								$ 5,000,000
Maturity date, description								maturity date would be amended from July 7, 2023 to March 31, 2025
Interest rate	10.00%	10.00%				10.50%		7.50%
Common shares price \| (per share)						$ 0.0029													$ 0.30
Debt description	The maturity date of any drawings under the Debt Facility will be June 23, 2027. For every $5 million or part thereof advanced under the Debt Facility, the Company will grant a new 0.5% life-of-mine gross revenue royalty, on the same terms as the Royalty, to a maximum of 2.0% on the Primary Claims and 1.4% on the Secondary Claims. The Company may buy back 50% of these royalties for $20 million. The Company determined that no recognition is required on the financial statements as of June 30, 2023.
Debt term	2 years
Royalties payment	$ 20,000,000
Convertible Debt [Member] \| 3 Quartely Payments Beginning June 30, 2024 [Member]
Short-Term Debt [Line Items]
Debt advance payment						$ 2,000,000
Convertible Debt [Member] \| Maturity Date [Member]
Short-Term Debt [Line Items]
Debt advance payment						9,000,000
Bridge Loan [Member]
Short-Term Debt [Line Items]
Debt face amount					$ 5,000,000
Gain on extinguishment of debt																(222,754)
Debt description					The Bridge Loan bears interest of 10.5% per annum and matures at the earlier of (i) the advance of the Stream, or (ii) June 30, 2024
Increase in quantity delivered					5.00%
Gains loss on extinguishment debt																222,754
Bridge Loan [Member] \| Consolidated Balance Sheets [Member]
Short-Term Debt [Line Items]
Interest payable current																		53,985
Interest expense, debt														$ 168,166		$ 346,550
Multi-metal Stream [Member]
Short-Term Debt [Line Items]
Convertible debt										37,000,000
Non Convertible Promissory Notes Payable [Member]
Short-Term Debt [Line Items]
Notes Payable											$ 2,500,000
Interest rate											15.00%	10.00%		10.00%		10.00%
Payment for Acquisition, Land, Held-for-Use							$ 202,000
Maturity date											Dec. 31, 2023
Debt face amount												$ 504,315		$ 504,315		$ 504,315		1,000,000
Gain on extinguishment of debt																99,569
Convertible debt												150,000		150,000		150,000
Debt advance payment				$ 18,000								15,000
Notes Payable, Current												1,095,253		1,095,253		1,095,253
Interest Expense														54,931	92,466	110,411	167,877
Financing costs												$ 3,151		$ 3,151		3,151		$ 384,041
Gains loss on extinguishment debt																$ (99,569)
Non Convertible Promissory Notes Payable [Member] \| Related Party [Member]
Short-Term Debt [Line Items]
Convertible debt				120,000
Non Convertible Promissory Notes Payable [Member] \| Another Party [Member]
Short-Term Debt [Line Items]
Convertible debt				$ 120,000
RCD Note [Member]
Short-Term Debt [Line Items]
Interest rate									9.00%
Debt face amount									$ 8,000,000
Gain on extinguishment of debt	6,980,932
Convertible debt			96,000,000							8,000,000			$ 8,000,000		$ 8,000,000		$ 8,000,000
Royalty percentage									1.85%
Maturity date, description													maturity date from July 7, 2023 to March 31, 2025
Gains loss on extinguishment debt	$ (6,980,932)
CD1 Note [Member]
Short-Term Debt [Line Items]
Convertible debt										5,000,000
Increase in debt										$ 6,000,000
Common shares price \| $ / shares												$ 0.219		$ 0.219		$ 0.219		$ 0.219
CD2 Note [Member]
Short-Term Debt [Line Items]
Convertible debt						$ 15,000,000
CD One And CD Two Note [Member] \| Minimum [Member]
Short-Term Debt [Line Items]
Debt advance payment			6,000,000
CD One And CD Two Note [Member] \| Maximum [Member]
Short-Term Debt [Line Items]
Debt advance payment			$ 15,000,000

Schedule of Warrant Activity (Details) - Warrant [Member]	6 Months Ended
	Jun. 30, 2023 $ / shares shares	Jun. 30, 2023 $ / shares shares	Jun. 30, 2022 $ / shares shares	Jun. 30, 2022 $ / shares shares
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of warrants, beginning balance \| shares	162,129,064	162,129,064	111,412,712	111,412,712
Weighted average exercise price, beginning balance		$ 0.49		$ 0.54
Weighted average grant date, beginning balance	$ 0.17		$ 0.18
Number of warrants, issued \| shares			50,955,636	50,955,636
Weighted average issued price, Issued				$ 0.37
Weighted average grant date, Issued			$ 0.15
Number of warrants, Expired \| shares			(239,284)	(239,284)
Weighted average exercise price, Expired				$ 0.70
Weighted average grant date, Expired			$ 0.21
Number of warrants, ending balance \| shares	151,712,397	151,712,397	162,129,064	162,129,064
Weighted average exercise price, ending balance		$ 0.50		$ 0.49
Weighted average grant date, ending balance	$ 0.17		$ 0.17
Number of warrants, Exercised \| shares	(10,416,667)	(10,416,667)
Weighted average exercise price, Exercised		$ 0.11
Weighted average grant date, Exercised	$ 0.12

Schedule of Warrants Outstanding Exercise Price (Details)	Jun. 30, 2023 $ / shares shares
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of warrants	151,712,397
Number of warrants exercisable	151,712,379
Warrants One [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Expiry date	Aug. 31, 2023
Exercise price \| $ / shares	$ 0.50
Number of warrants	58,284,148
Number of warrants exercisable	58,284,148
Warrants Two [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Expiry date	Dec. 31, 2025
Exercise price \| $ / shares	$ 0.59
Number of warrants	32,895,200
Number of warrants exercisable	32,895,200
Warrants Three [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Expiry date	Feb. 09, 2026
Exercise price \| $ / shares	$ 0.60
Number of warrants	17,112,500
Number of warrants exercisable	17,112,500
Warrants Four [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Expiry date	Feb. 16, 2026
Exercise price \| $ / shares	$ 0.60
Number of warrants	2,881,580
Number of warrants exercisable	2,881,580
Warrants Five [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Expiry date	Apr. 01, 2025
Exercise price \| $ / shares	$ 0.37
Number of warrants	40,538,969
Number of warrants exercisable	40,538,969

Schedule of Estimated Using Black-Scholes Valuation Model for Fair Value of Broker Options (Details) - March 2023 [Member]	6 Months Ended
	Jun. 30, 2023 $ / shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Risk free interest rate	3.40%
Dividend yield	0.00%
Volatility	120.00%
Stock price	$ 0.11
Weighted average life	3 years

Schedule of Actual Stock Options Issued and Outstanding (Details)	6 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 shares	Dec. 31, 2021 shares
Subsidiary, Sale of Stock [Line Items]
Number of stock options outstanding	9,320,636	9,320,636	9,053,136
Number of options vested (exercisable)	7,631,222
Grant date fair value \| $	$ 2,280,807
Stock Options One [Member]
Subsidiary, Sale of Stock [Line Items]
Exercise price \| $ / shares	$ 0.60
Remaining contractual life (years)	3 months
Number of stock options outstanding	200,000
Number of options vested (exercisable)	200,000
Grant date fair value \| $	$ 52,909
Stock Options Two [Member]
Subsidiary, Sale of Stock [Line Items]
Exercise price \| $ / shares	$ 0.60
Remaining contractual life (years)	1 year 3 months 25 days
Number of stock options outstanding	1,575,000
Number of options vested (exercisable)	1,575,000
Grant date fair value \| $	$ 435,069
Stock Options Three [Member]
Subsidiary, Sale of Stock [Line Items]
Exercise price \| $ / shares	$ 0.55
Remaining contractual life (years)	1 year 9 months 21 days
Number of stock options outstanding	5,957,659
Number of options vested (exercisable)	4,468,245
Grant date fair value \| $	$ 1,536,764
Stock Options Four [Member]
Subsidiary, Sale of Stock [Line Items]
Exercise price \| $ / shares	$ 0.335
Remaining contractual life (years)	2 years 7 months 20 days
Number of stock options outstanding	1,037,977
Number of options vested (exercisable)	1,037,977
Grant date fair value \| $	$ 204,213
Stock Options Five [Member]
Subsidiary, Sale of Stock [Line Items]
Exercise price \| $ / shares	$ 0.15
Remaining contractual life (years)	4 months 28 days
Number of stock options outstanding	150,000
Number of options vested (exercisable)	150,000
Grant date fair value \| $	$ 14,465
Stock Options Six [Member]
Subsidiary, Sale of Stock [Line Items]
Exercise price \| $ / shares	$ 0.15
Remaining contractual life (years)	4 years 4 months 24 days
Number of stock options outstanding	400,000
Number of options vested (exercisable)	200,000
Grant date fair value \| $	$ 37,387

Capital Stock, Warrants and Stock Options (Details Narrative)		1 Months Ended		3 Months Ended		6 Months Ended
	Mar. 27, 2023 shares	Mar. 31, 2023 USD ($) $ / shares shares	Mar. 31, 2023 CAD ($) shares	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2022 USD ($) shares	Jun. 30, 2023 $ / shares	Mar. 31, 2023 $ / shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2022 $ / shares	May 13, 2022 $ / shares shares	Mar. 31, 2022 $ / shares
Subsidiary, Sale of Stock [Line Items]
Common stock, shares authorized				1,500,000,000		1,500,000,000				1,500,000,000
Common stock, par value \| $ / shares				$ 0.000001		$ 0.000001				$ 0.000001
Preferred stock, shares authorized				10,000,000		10,000,000				10,000,000
Preferred stock, par value \| $ / shares				$ 0.000001		$ 0.000001				$ 0.000001
Warrants issued				151,712,379		151,712,379
Proceeds from warrant exercise \| $						$ 837,459
Derivative liability \| $				$ 1		1				$ 903,697
Issue price \| $ / shares													$ 0.30
Gross proceeds \| $						3,661,822
Share-Based Payment Arrangement [Member]
Subsidiary, Sale of Stock [Line Items]
Options grant fair value \| $				$ 34,441	$ 66,384	$ 93,140	$ 168,994
March 2023 Special Warrants Issuance [Member]
Subsidiary, Sale of Stock [Line Items]
Stock price \| $ / shares								$ 0.23			$ 0.11
Warrant [Member]
Subsidiary, Sale of Stock [Line Items]
Warrants expired						10,416,667
Warrants expired							239,284
Common Stock [Member]
Subsidiary, Sale of Stock [Line Items]
Stock Issued During Period, Shares, Conversion of Units	51,633,727
May 2022 Teck Warrants [Member]
Subsidiary, Sale of Stock [Line Items]
Warrants expired						10,416,667
February 2020 Broker Warrants [Member]
Subsidiary, Sale of Stock [Line Items]
Warrants expired							239,284
Brokered Private Placement [Member] \| March 2023 Special Warrants Issuance [Member]
Subsidiary, Sale of Stock [Line Items]
Warrants issued		51,633,727
Issue price \| $ / shares		$ 0.12
Gross proceeds		$ 4,536,020	$ 6,196,047
Gross proceeds, received in cash \| $		3,661,822
Settlement of accounts payable, accrued liabilities \| $		$ 874,198
Warrants description		Each March 2023 Unit consists of one share of Common Share of the Company (each, a “Unit Share”) and one common stock purchase warrant of the Company (each, a “Warrant”). Each whole Warrant entitles the holder thereof to acquire one Common Share of the Company (a “Warrant Share”, and together with the Unit Shares, the “Underlying Shares”) at an exercise price of C$0.15 per Warrant Share until March 27, 2026, subject to adjustment in certain events. In the event that the Registration Statement has not been declared effective by the SEC on or before 5:00 p.m. (EST) on July 27, 2023, each unexercised Special Warrant will be deemed to be exercised on the Automatic Exercise Date into one penalty unit of the Company (each, a “Penalty Unit”), with each Penalty Unit being comprised of 1.2 Unit Shares and 1.2 Warrants. Notice of such effectiveness was received on July 11, 2023, eliminating the potential for issuance of the Penalty Units.	Each March 2023 Unit consists of one share of Common Share of the Company (each, a “Unit Share”) and one common stock purchase warrant of the Company (each, a “Warrant”). Each whole Warrant entitles the holder thereof to acquire one Common Share of the Company (a “Warrant Share”, and together with the Unit Shares, the “Underlying Shares”) at an exercise price of C$0.15 per Warrant Share until March 27, 2026, subject to adjustment in certain events. In the event that the Registration Statement has not been declared effective by the SEC on or before 5:00 p.m. (EST) on July 27, 2023, each unexercised Special Warrant will be deemed to be exercised on the Automatic Exercise Date into one penalty unit of the Company (each, a “Penalty Unit”), with each Penalty Unit being comprised of 1.2 Unit Shares and 1.2 Warrants. Notice of such effectiveness was received on July 11, 2023, eliminating the potential for issuance of the Penalty Units.
Compensation Options [Member] \| Warrant [Member]
Subsidiary, Sale of Stock [Line Items]
Payments of Stock Issuance Costs \| $						$ 846,661
Options granted						2,070,258
Exercise price \| $ / shares		$ 0.12
Teck Resources Limited [Member]
Subsidiary, Sale of Stock [Line Items]
Warrants issued												10,416,667
Exercise price \| $ / shares									$ 0.11			$ 0.37
Warrants expired		Mar. 31, 2023
Gain on warrant extinguishment \| $		$ 214,714
Warrants expired		10,416,667	10,416,667
Proceeds from warrant exercise \| $			$ 1,145,834
Derivative liability \| $		$ 400,152
Volatility rate		120.00%	120.00%
Stock price \| $ / shares									$ 0.11
Interest rate		3.42%	3.42%
Interest rate		4.06%	4.06%
Dividend rate		0.00%	0.00%

Restricted Share Units (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
Restricted Share Units (Details Narrative) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options grant fair value	$ 419,754	$ 15,922	$ 594,724	$ 38,859

Deferred Share Units (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
Deferred Share Units (Details Narrative) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Deferred Share Unit [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options grant fair value	$ 486,602	$ 695,494	$ 287,324	$ 895,416

Commitments and Contingencies (Details Narrative)	3 Months Ended
Commitments and Contingencies (Details Narrative)	Mar. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Monthly payments	$ 10,000

Deferred tax liability (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
Deferred tax liability (Details Narrative) - USD ($)	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income tax expense benefit	$ 3,500,000	$ 0	$ 3,500,000	$ 0
Income tax rate			(3029.00%)	0.00%
Deferred tax assets	$ 32,300,000		$ 32,300,000

Related party transactions (Details Narrative) - USD ($)	Jun. 30, 2023	Jun. 30, 2022
Key Management Personnel [Member]
Related Party Transaction [Line Items]
Accounts payable and accrued liabilities	$ 52,148	$ 1,049,304

Subsequent Events (Details Narrative) - Subsequent Event [Member] - $ / shares	Jul. 14, 2023	Jul. 06, 2023	Jul. 04, 2023
Restricted Stock Units (RSUs) [Member]
Subsequent Event [Line Items]
Shares granted			6,735,354
Deferred Stock Units DSU [Member] \| Director [Member]
Subsequent Event [Line Items]
Shares granted		245,454	1,611,826
Vesting date		Jul. 06, 2024
Warrant [Member]
Subsequent Event [Line Items]
Warrant exercise price	$ 0.15

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