Sun Summit Closes Oversubscribed $2.89 Million Private Placement
Sun Summit Closes Oversubscribed $2.89
Million Private Placement
Vancouver, British Columbia--(Newsfile Corp. - May 11, 2023) - Sun Summit Minerals Corp.
(TSXV:
SMN) (OTCQB: SMREF) is pleased to announce that it has closed its oversubscribed private placement
for gross proceeds of $2,889,419.66 consisting of:
(i)
9,123,015 non-flow-through units at a price of $0.11 each ("
NFT Units
") for $1,003,531.70; and
(ii)
15,715,733 flow-through units at a price of $0.12 each ("
FT Units
") for $1,885,887.96.
"The successful closing of our oversubscribed financing has strengthened our balance sheet and
positions us for a very active exploration season," commented Sharyn Alexander, Sun Summit's
President. "Exploration plans at the Buck Project are being finalized but will include fieldwork aimed at
advancing exploration targets to the drill-ready stage, as well as step-out drilling at Buck Main, following
up on the strong expansion potential identified through recent drilling. We thank current shareholders for
their continued support as well as welcome new investors through this financing. The Company is poised
for an exciting year."
Each NFT Unit consisted of one (non-flow-through) common share of the Company (an "
NFT Share
"),
and one non-transferable common share purchase warrant (a "
Warrant
"). Each FT Unit consisted of one
common share of the Company issued as a "flow-through share" under Canada's
Income Tax Act
(a
"
FT Share
") and one Warrant. Each Warrant entitles the purchase of one (non-flow-through) common
share of the Company (a "
Warrant Share
") for two years at a price of $0.165.
The Company paid finder's fees consisting of a commission of 7% of the gross proceeds raised by
eligible finders (commissions of $159,986) and finder warrants ("
Finder Warrants
") to purchase that
number of Warrant Shares equal to 7% of the number of Units sold by the finders for two years at a price
of $0.165 (1,159,857 Finder Warrants) as follows: Haywood Securities Inc. received $28,693 and
251,183 Finder Warrants, Echelon Wealth Partners Inc. received $37,089 and 106,050 Finder
Warrants, Eventus Capital Corp. received $35,705 and 303,380 Finder Warrants, RedPlug Inc. received
$29,400 and 245,000 Finder Warrants, Canaccord Genuity Corp. received $11,970 and 105,000 Finder
Warrants, Red Cloud Securities Inc. received $7,280.67 and 62,794 Finder Warrants, GloRes Capital
Inc. received $5,775 and 52,500 Finder Warrants, Richardson Wealth Ltd. received $3,360 and 28,000
Finder Warrants, and MogoTrade Inc. received $714 and 5,950 Finder Warrants.
The Company intends to use the proceeds raised from the placement for the exploration of the
Company's Buck Property and other properties in British Columbia it may acquire. The gross proceeds
from the issuance of the FT Shares will be used for "Canadian Exploration Expenses" (within the
meaning of the
Income Tax Act
(Canada)), which will be renounced with an effective date no later than
December 31, 2023, to the purchasers of the FT Units in an aggregate amount not less than the gross
proceeds raised from the issue of the FT Shares.
The FT Shares, NFT Shares, Warrants and Warrant Shares will have a four month hold period expiring
on September 11, 2023.
A senior officer of the Company acquired 20,000 NFT Units under the placement which constituted a
"related party transaction" under Multilateral Instrument 61-101
Protection of Minority Security Holders
in Special Transactions
and TSX Venture Exchange policy. However, such related party transaction
was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as
neither the fair market value of the NFT Units issued to, nor the consideration paid by, such senior officer
exceeded 25% of the Company's market capitalization. There was insufficient time between such
subscription and the closing for the Company to file a material change report respecting the placement
not less than 21 days before the closing of the placement.
The securities described herein have not been, and will not be, registered under the United States
Securities Act of 1933, or any state securities laws, and accordingly, may not be offered or sold within
the United States except in compliance with the registration requirements of the U.S. Securities Act
and applicable state securities requirements or pursuant to exemptions therefrom. This press release
does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.
About Sun Summit
Sun Summit Minerals (TSXV: SMN) (OTCQB: SMREF) is a mineral exploration company focused on
expanding its gold, silver, and zinc discovery at its flagship Buck Project located in north-central British
Columbia.
Sun Summit is committed to environmental and social responsibility, with a focus on accountable
development and building respectful and beneficial relationships with Indigenous and local communities.
Further details are available at
www.sunsummitminerals.com
.
For further information, contact:
Sharyn Alexander
President
Roger Blair
Acuity Advisory Corp., Corporate Communications
Tel. 778-588-9606
Forward-Looking Information
Statements contained in this news release that are not historical facts may be forward-looking
statements, which involve risks, uncertainties and other factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements. Factors that could cause
such differences, without limiting the generality of the following, include: risks inherent in exploration
activities; the impact of exploration competition; unexpected geological or hydrological conditions;
changes in government regulations and policies, including trade laws and policies; failure to obtain
necessary permits and approvals from government authorities; volatility and sensitivity to market prices;
volatility and sensitivity to capital market fluctuations; the ability to raise funds through private or public
equity financings; environmental and safety risks including increased regulatory burdens; weather and
other natural phenomena; and other exploration, development, operating, financial market and regulatory
risks. Except as required by applicable securities laws and regulation, Sun Summit disclaims any
intention or obligation to update or revise any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by applicable securities laws.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada
accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/165669