Summa Silver unveils $5.0 million private placement
Summa Silver Corp. [SSVR-TSXV, SSVRF-OTCQB, 48X-FSE] has struck a deal with a syndicate of agents in connection with a brokered private placement that is expected to generate gross proceeds of $5 million. The private placement is expected to consist of up to 12.5 million units priced at 40 cents per unit.
Net proceeds of the offering will be used for further exploration work on the company’s projects and for general working capital purposes.
Each unit will consist of one common share and one half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one common share at a price of 55 cents per share for 24 months from the date of closure, which is expected to occur on November 1, 2024.
The units sold under the terms of the offering are expected to be offered to purchasers in all provinces of Canada, except Quebec, and other qualifying jurisdictions, including the United States.
Summa was in the news two years ago when it raised $10.3 million from a brokered private placement. Mining financier Eric Sprott subscribed into the offering as the lead subscriber for $3 million.
Summa Silver shares eased 9.3% or $0.04 to 39 cents. The shares trade in a 52-week range of 62 cents and 29.5 cents.
Summa is a Canadian junior exploration company. It owns a 100% interest in the Hughes property located in central Nevada, which contains the former Belmont mine, one of the most prolific silver producers in the United States between 1903 and 1929. It can earn a 100% stake in the Mogollon property, which ranks as the largest historic silver producer in New Mexico.
Both properties have remained inactive since commercial production ceased and neither have seen modern exploration prior to Summa’s involvement.
At Mogollon, the focus of previous, multi-rig drilling was to test un-mined extensions of the Consolidated Mine, centred on the north-trending Queen Vein. The 3,766-acre Mogollon Property is located in the historically prolific Mogollon mining district of New Mexico, approximately 120 kilometres north of Silver City. Numerous underground workings have exploited high-grade gold and silver veins from three primary mines, Fanney, Last Chance and Consolidated Mining.
In a press release on September 16, 2024, Summa released an update on the highly prospective eastern extension of the Tonopah Mining district at the Hughes Project near Tonopah, Nevada.
At the Eastern Extension of the Tonopah Mining District, Summa said it has made three discoveries including the significant Ruby and Sapphire veins located up to 4.2 kilometres along strike from the historic Tonopah mining district.
The company said high-grade silver and gold mineralization has now been intersected in multiple zones over 6.2 kilometres across an east-west trend on the Hughes project.
An upcoming drill program will target mineralized extensions in a series of systematic step-out holes as well as target areas not previously drill tested.