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Sun Summit Announces Closing of C$5.0 Million Brokered Private Placement

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Sun Summit Announces Closing of C$5.0 Million Brokered Private Placement






Sun Summit Minerals Corp. (TSX-V: SMN) (OTCQB: SMREF) is pleased to announce that it has closed its previously announced brokered private placement for gross proceeds of C$ 4,000,000. Due to strong demand, the co-lead agents and joint bookrunners, Red Cloud Securities Inc. and Eventus Capital Corp. fully exercised their option to increase the total gross proceeds of the Offering to C$5,000,000.


Under the Offering, the Company sold 4,217,607 flow-through units at a price of C$0.66 per FT Unit and 2,736,271 flow-through units to charitable purchasers at a price of C$0.81 per Charity FT Unit.


Each FT Unit and Charity FT Unit consisted of one common share of the Company issued as a “flow-through share” under the Income Tax Act (Canada) and one-half of one common share purchase warrant, Each whole warrant entitles the holder to purchase one common share of the Company at a price of C$0.90 until July 31, 2023. The FT Shares and Warrant Shares have a hold period ending on November 30, 2021.


The Company intends to use the proceeds raised from the Offering for the exploration of the Company’s Buck Property and other Canadian properties it may acquire. The gross proceeds from the issuance of the FT Shares will be used for “Canadian Exploration Expenses” under the Income Tax Act (Canada) which will be renounced with an effective date no later than December 31, 2021 to the purchasers of the FT Units and Charity FT Units in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares. If the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each purchaser of FT Units and Charity FT Units for any additional taxes payable by such purchaser as a result of the Company’s failure to renounce the Qualifying Expenditures.


Under the Offering, the Company paid the Agents total cash commissions of C$ 269,629 and issued to the Agents 371,036 warrants to purchase common shares of the Company (the “Broker Warrants”) of which 207,838 Broker Warrants have an exercise price of C$ 0.66 per Warrant Share and 163,198 Broker Warrants have an exercise price of C$ 0.81 per Warrant Share. Each Broker Warrant is exercisable to acquire one Warrant Share until July 29, 2023.


The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.


About Sun Summit


Sun Summit Minerals is an exploration company focused on expanding its epithermal gold discovery at its flagship Buck Project located in north-central British Columbia.


The Company is exploring multiple high priority gold and silver targets through methodical, well-funded exploration campaigns with year round drilling access. The Project has high-grade and bulk-tonnage gold and silver potential and is located in a mining-established region that includes many former operating mines and current exploration projects.


Sun Summit is committed to environmental and social responsibility with a focus on responsible development to generate positive outcomes for all stakeholders.


Posted July 30, 2021

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