Summa Silver Corp. (TSX-V: SSVR) (OTCQB: SSVRF) (Frankfurt: 48X) is pleased to announce that it has closed the non-brokered private placement financing of units of the Company at a price of $1.00 per Unit for gross proceeds of $10,168,000. Participation in the Offering included an order of $2,000,000 from Mr. Eric Sprott.
Each Unit is comprised of one common share of the Company and one-half of one Common Share purchase warrant. Each Warrant shall be exercisable to acquire one Common Share at a price of $1.75 per Warrant Share for a period of 24 months from the closing of the Offering. If the closing price of the Common Shares is at a price equal to or greater than $3.00 for a period of ten consecutive trading days, Summa will have the right to accelerate the expiry date of the warrants by giving notice, via a news release, to the holders of the Warrants that the Warrants will expire on the date that is 30 days after the issuance of said news release.
Galen McNamara, CEO of the Company, stated: “Closing this financing has placed Summa Silver in a strong position to push forward with aggressive exploration programs in two of the most prospective high-grade silver districts in the United States. I would like to thank all new and existing shareholders for their continued support. We look forward to continuing our aggressive approach to value creation as we chase high-grade discoveries in 2021.”
The Company issued 10,168,000 Units at a price of $1.00 per Unit pursuant to the Offering. Net proceeds of the Offering will be used for exploration, corporate development, and general working capital purposes. Securities issued pursuant to the Offering are subject to a four month and one-day statutory hold period. The Offering Is subject to certain customary conditions including, but not limited to, the receipt of all necessary regulatory approvals and acceptance of the TSX Venture Exchange.
In connection with the Offering, the Company paid total finders’ fees of $555,100 in cash and issued 555,100 finders’ warrants to eligible finders. Each Finders’ Warrant is exercisable into one Common Share of the Company at a price of $1.00 for a period of two years.
Eventus Capital Corp. and Mackie Research Capital Corporation. acted as finders in connection with a portion of the Offering.
About Summa Silver Corp
Summa Silver Corp is a Canadian junior mineral exploration company. The Company has options to earn 100% interests in the Hughes property located in central Nevada and the Mogollon property located in southwestern New Mexico. The Hughes property is host to the high-grade past-producing Belmont Mine, one of the most prolific silver producers in the United States between 1903 and 1929. The Mogollon property features a number of high-grade past-producing mines which operated between the 1880’s and 1942.
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We acknowledge the [financial] support of the Government of Canada.