Summa Silver Announces $5 Million Brokered Financing
Summa Silver Corp. (“Summa” or the “Company”) (TSXV:SSVR) (OTCQX:SSVRF) (Frankfurt:48X) is excited to share news regarding a substantial financing initiative. The Company has engaged Research Capital Corporation and Eventus Capital Corp. as co-lead agents and joint bookrunners for a brokered private placement. This offering involves raising up to $5 million through the sale of 12,500,000 units, each priced at $0.40.
Details of the Offering
Each unit in the offering is composed of one common share of the Company and one-half of a share purchase warrant. The whole warrant will allow for the acquisition of an additional common share at a price of $0.55 for a duration of 24 months following the closure of the offering.
The units will be available to interested purchasers in every province of Canada, excluding Quebec, as well as in other qualifying jurisdictions including the United States. This will be conducted under the listed issuer financing exemption outlined in National Instrument 45-106, known as NI 45-106. Notably, these units will not be subject to a statutory hold period, allowing for greater flexibility for investors.
Use of Proceeds
The net proceeds from this offering are earmarked for advancing exploration activities on the Company’s projects, along with general working capital purposes. These potential investments are detailed further in the offering document, which we encourage prospective investors to review prior to making any investment decisions.
Anticipated Closing Date
The company expects to close this offering around November 1, 2024, although this date may change based on various factors, including the completion of necessary regulatory approvals and compliance with the requirements set forth by the TSX Venture Exchange.
Compensation for Agents
Summa Silver has agreed to compensate the agents involved in this transaction with a cash commission of 7% on the gross proceeds. Additionally, the Company plans to issue broker warrants to the agents, which will be exercisable for a two-year period to acquire a number of common shares equal to 7% of the units sold at an exercise price of $0.40.
About Summa Silver Corp
Summa Silver Corp operates as a junior mineral exploration entity with a strong portfolio of projects. The Company notably holds a 100% stake in two significant projects: the Hughes project in central Nevada and the Mogollon project in southwestern New Mexico. The Hughes project features the high-grade Belmont Mine, historically one of the most prolific silver mines in the U.S. Meanwhile, the Mogollon project is recognized as the largest historic silver producer in New Mexico. Both locations have not seen any modern exploration until Summa took over, positioning the Company well for future advancements in these ventures.
Frequently Asked Questions
What is the purpose of the $5 million financing by Summa Silver?
The financing aims to fund further exploration work on the Company's projects and cover general working capital needs.
Which agents are involved in the brokered private placement?
Research Capital Corporation and Eventus Capital Corp. are acting as the co-lead agents and joint bookrunners for this financing initiative.
When is the anticipated closing date for the financing?
The closing date is expected around November 1, 2024, subject to regulatory approvals.
How can investors acquire the units being offered?
The units will be made available in all provinces of Canada, excluding Quebec, and in other qualifying jurisdictions including the U.S.
What notable projects does Summa Silver Corp own?
Summa Silver owns the Hughes project in Nevada and the Mogollon project in New Mexico, both of which have significant historical silver production.
