The Prospector News

Summa Silver Corp. Closes $8,000,000 Private Placement Financing, Including a Lead Investment by Eric Sprott

You have opened a direct link to the current edition PDF

Open PDF Close

Share this news article

Summa Silver Corp. Closes $8,000,000 Private Placement Financing, Including a Lead Investment by Eric Sprott






Summa Silver Corp. (CSE: SSVR) (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 $8,000,000. Participation in the Offering included a lead order of $5,000,000 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 full 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 volume-weighted average trading price of the Common Shares as quoted on the Canadian Securities Exchange is 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: “I would like to thank all new and existing shareholders for their continued support. Closing this financing has placed Summa Silver in a strong position to push forward with an aggressive exploration program on the eastern side of the historic Tonopah district. With drilling now in progress and advancing well, we look forward to releasing assay results in a timely manner as they are received.”


The Company issued 8,000,000 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 the receipt and final approval of the CSE. 


In connection with the Offering, the Company paid total finder’s fees of $446,400 in cash and issued 446,400 finder’s warrants to eligible finders.  Each Finder’s 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. acted as a finder in connection with a portion of the Offering.


A director of the Company subscribed for a total of 100,000 Units in the Offering. As a result, the Offering is a related party transaction (as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions).  The Company relied upon exemptions from the formal valuation and minority shareholder approval requirements under MI 61-101.


Prior to the Offering, Mr. Sprott beneficially owned or controlled 4,000,000 Common Shares.  Following closing of the Offering, Mr. Sprott beneficially owns or controls 9,000,000 Common Shares and 2,500,000 Warrants representing 17.64% of the issued and outstanding Common Shares on a non-diluted basis and 21.50% on a partially diluted basis assuming the exercise of Warrants


The securities were acquired by Mr. Sprott, through 2176423 Ontario Ltd., for investment purposes. Mr. Sprott may acquire additional securities of the Company including on the open market or through private acquisitions or he may sell securities of the Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors that Mr. Sprott considers relevant from time to time.


A copy of 2176423 Ontario Ltd.’s related early warning report will appear on the Company’s profile on SEDAR ( and may also be obtained by calling Mr. Sprott’s office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).


About Summa Silver Corp 


Summa Silver Corp is a Canadian junior mineral exploration company. The Company is focused on the Hughes Property located in central Nevada, which is host to the high-grade historically producing Belmont Mine, one of the most prolific silver producers in the United States between 1903 and 1929. The mine has remained inactive since commercial production ceased in 1929 due to heavily depressed metal prices and little to no modern exploration work has ever been completed.


Posted August 6, 2020

Share this news article


Orea Announces Closing of Oversubscribed Non-Brokered Private Placement

Orea Mining Corp. (TSX: OREA) (OTCQB: OREAF) (FSE: 3CG) is please... READ MORE

January 26, 2023


Canada Silver Cobalt Works Inc. (TSX-V: CCW) (OTC: CCWOF) (Frankf... READ MORE

January 26, 2023

Guanajuato Silver Produces Record 836,375 AgEq Ounces in Q4

Sees 19% Q4 Production Increase Over Q3   Guanajuato Silver Comp... READ MORE

January 26, 2023

Argentina Lithium Drilling Extends Lithium Brine Zone at Rincon West

Argentina Lithium & Energy Corp. (TSX-V: LIT) (FSE: OAY3) (O... READ MORE

January 26, 2023


Nevada King Gold Corp. (TSX-V: NKG) (OTCQX: NKGFF) is pleased t... READ MORE

January 26, 2023

We acknowledge the [financial] support of the Government of Canada.

Government of Canada Supported
Copyright 2023 The Prospector News