Sprott leads Summa Silver financing
Summa Silver Corp. [SSVR-TSXV, SSVRF-OTCQB, 48X-FSE] said Thursday it has 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 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 ongoing, multi-rig drilling is 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.
On Thursday, Summa said proceeds of the $10.3 million financing will be used for further exploration work on the company’s projects. It consisted of the issuance of 12.9 million units, including the partial exercise of the agents’ option at 80 cents per unit.
Each unit consists of one common share and one half of one common share purchase warrant. Each whole warrant can be exercised to acquire on e common share for $1.20 each for 36 months from the closing date of the offering.
“Closing of this financing places the company in a strong position to start 2023,’’ said Summa CEO Galen McNamara. “The fundamentals for silver look strong and will be increasingly bolstered by the expected increase in demand from the solar and electric vehicle sectors,’’ he said.
“It is our goal that one day, the silver deposits we uncover will help bring more prosperity to the regions of New Mexico and Nevada where we work, while protecting the environment and preserving the environment and preserving the rural lifestyles of these two special parts of America.’’
The company said Sprott, via an Ontario numbered company, acquired 3.75 million units, worth $3 million. After closing, he now owns or controls 16.9 million common shares and 6.5 million warrants, representing approximately 18.5% on a non-diluted basis and 23.9% fully diluted.
That’s up from 16.9% (non-diluted) and 21.5% (partially diluted) prior to the offering.
On Thursday, Summa shares were unchanged at 79 cents and currently trade in a 52-week range of $1.54 and 48.5 cents.