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Sun Summit Minerals Corp (2)
Symbol SMN
Shares Issued 40,265,178
Close 2024-04-02 C$ 0.095
Market Cap C$ 3,825,192
Recent Sedar Documents

Sun Summit Minerals reprices private placement

2024-04-02 10:54 ET - News Release

Mr. Brian Lock reports

SUN SUMMIT ANNOUNCES REVISION OF NON-BROKERED PRIVATE PLACEMENT AND REDUCTION OF 2024 EXPLORATION COMMITMENT

Sun Summit Minerals Corp. has repriced and restructured the terms of the non-brokered private placement of the company previously announced in the company's press release on March 11, 2024. New terms will consist of the issuance of: (i) up to 11,363,636 flow-through units of the company at a price of 11 cents per flow-through unit; and (ii) up to 12.5 million non-flow-through units of the company at a price of 10 cents per non-flow-through unit, for aggregate gross proceeds to the company of up to $2.5-million. Each flow-through unit will consist of one common share of the company issued on a flow-through basis under the Income Tax Act (Canada) and one-half of one common share purchase warrant of the company. Each flow-through warrant will entitle the holder to acquire one non-flow-through common share of the company at an exercise price of 13 cents per share for a period of 24 months from the date of issuance of the flow-through warrant. Each non-flow-through unit will consist of one non-flow-through common share of the company and one-half of one common share purchase warrant of the company. Each non-flow-through warrant will entitle the holder to acquire one non-flow-through common share of the company at an exercise price of 13 cents per share for a period of 24 months from the date of issuance of the non-flow-through warrant.

Brian Lock, executive chairman of the company, stated: "The investment in Sun Summit Minerals represents the opportunity at a low price point to participate in the exploration of a promising epithermal gold-silver system on the JD project in the Toodoggone region in north-central British Columbia. The JD project is adjacent to the east of the Thesis Gold's Ranch project and in close proximity to other known deposits. The Sun Summit team includes highly experienced geologists with extensive knowledge of the Toodoggone gained through years of exploration in the region. We are excited to begin drilling multiple high-priority targets during the summer this year."

The company intends to use the proceeds of the private placement for exploration and development of the company's mineral property interests in British Columbia, Canada, and for general working capital purposes. The gross proceeds from the issuance of all flow-through shares will be used to incur Canadian exploration expenses (CEE) and will qualify as flow-through mining expenditures under the Income Tax Act (Canada), which will be renounced to the purchasers of flow-through shares with an effective date no later than Dec. 31, 2024, in an aggregate amount no less than the proceeds raised from the issue of the flow-through shares.

The private placement is subject to the approval of the TSX Venture Exchange. The securities issued in the private placement will be subject to a four-month hold period in accordance with applicable securities laws.

Extension of exploration commitment

The company and the JD property vendors have agreed to reduce the required year 1 expenditures on the JD project to $1-million from $2.5-million. The deferred $1.5-million will be rolled into the 2025 property option requirements. The company intends to spend in excess of $1-million on the JD property in 2024, with any additional exploration expenditure incurred this year counted toward the 2025 exploration commitments. For further details regarding the option agreement for the JD project, see the company's press releases dated Jan. 9, 2024, and Feb. 5, 2024.

About Sun Summit Minerals Corp.

Sun Summit Minerals is a mineral exploration company focused on expansion and discovery of district-scale gold and copper assets in British Columbia. The company's diverse portfolio includes the JD project in the Toodoggone region of north-central British Columbia and the Buck project in 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.

We seek Safe Harbor.

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