Summa Silver Corp. Closes $10,168,000 Private Placement Financing, Including an Investment by Eric Sprott

Rhea-AI Summary

Summa Silver Corp. has successfully closed a non-brokered private placement financing, raising $10,168,000 at $1.00 per unit. The offering included a $2,000,000 investment from Eric Sprott. Each unit consists of one common share and half a warrant, exercisable at $1.75 for 24 months. The proceeds will be allocated for exploration and corporate development in high-grade silver districts in the U.S. The company also paid finders' fees totaling $555,100.

Positive

• Raised $10,168,000 in private placement financing.
• Included a significant investment of $2,000,000 from Eric Sprott.
• Proceeds targeted for exploration and corporate development in high-grade silver districts.

Negative

• None.

VANCOUVER, BC, Feb. 19, 2021 /PRNewswire/ - 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.

FAQ

What was the amount raised in Summa Silver's private placement financing on February 19, 2021?

Summa Silver raised $10,168,000 in its private placement financing.

Who invested <b>$2,000,000</b> in Summa Silver's financing?

Eric Sprott invested $2,000,000 in the financing.

What will the proceeds from the offering be used for?

The proceeds will be used for exploration, corporate development, and general working capital purposes.

What is the exercise price for the warrants issued in the financing?

The warrants are exercisable at $1.75 per share for a period of 24 months.