VANCOUVER, BC, Feb. 19, 2021 /CNW/ - Summa Silver Corp.
("Summa" or the "Company") (TSXV: SSVR) (OTCQB: SSVRF)
(Frankfurt: 48X) is pleased to
announce that it has closed the non-brokered private placement
financing of units of the Company (the "Units") at a price of
$1.00 per Unit (the "Offering") 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 (a
"Common Share") and one-half of one Common Share purchase warrant
(each whole warrant, a "Warrant"). Each Warrant shall be
exercisable to acquire one Common Share (a "Warrant 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 (the "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.
Follow Summa Silver on
Twitter: @summasilver
LinkedIn:
https://www.linkedin.com/company/summa-silver-corp/
ON BEHALF OF THE BOARD OF DIRECTORS
"Galen
McNamara"
Galen
McNamara, Chief Executive Officer
info@summasilver.com
www.summasilver.com
Investor Relations Contact:
Kin Communications
Arlen Hansen
604-684-6730
SSVR@kincommunications.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary note regarding forward-looking statements
This news release contains certain "forward looking
statements" and certain "forward-looking information" as defined
under applicable Canadian and U.S. securities laws. Forward-looking
statements and information can generally be identified by the use
of forward-looking terminology such as "may", "will", "should",
"expect", "intend", "estimate", "anticipate", "believe",
"continue", "plans" or similar terminology. The forward-looking
information contained herein is provided for the purpose of
assisting readers in understanding management's current
expectations and plans relating to the future. These
forward–looking statements or information relate to, among other
things: the closing of the Offering, the expected use of proceeds
of the Offering, the participation of Eric
Sprott in the Offering, and the exploration and development
of the Company's mineral exploration projects.
Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the actual
actions, events or results to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to: the requirement for regulatory approvals;
enhanced uncertainty in global financial markets as a result of the
current COVID-19 pandemic; unquantifiable risks related to
government actions and interventions; stock market volatility;
regulatory restrictions; and other related risks and
uncertainties.
Forward-looking information are based on management of the
parties' reasonable assumptions, estimates, expectations, analyses
and opinions, which are based on such management's experience and
perception of trends, current conditions and expected developments,
and other factors that management believes are relevant and
reasonable in the circumstances, but which may prove to be
incorrect.
The Company undertakes no obligation to update
forward-looking information except as required by applicable law.
Such forward-looking information represents management's best
judgment based on information currently available. No
forward-looking statement can be guaranteed and actual future
results may vary materially. Accordingly, readers are advised not
to place undue reliance on forward-looking statements or
information.
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SOURCE Summa Silver Corp.