San Marco to Raise $1.05 Million Through Non-Brokered Private Placement

September 26, 2019 9:00 AM EDT | Source: Sun Summit Minerals Corp.

Vancouver, British Columbia--(Newsfile Corp. - September 26, 2019) - San Marco Resources Inc. (TSXV: SMN) announces that it intends to complete a non-brokered private placement to raise gross proceeds up to C$ 1,050,000.

The private placement will consist of up to 7,000,000 units at a price of $0.15 per unit. 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 purchase one common share for three years at a price of $0.20 for the first two years and $0.25 for the third year.

The placement will be sold to qualified investors, including shareholders of record resident in Canada on September 24, 2019. Such shareholders are eligible to purchase up to $15,000 worth of units without an investment dealer or more than $15,000 worth with suitability advice from a registered investment dealer. If, after deducting subscriptions from qualified investors, the subscriptions from existing shareholders exceed the remaining units available, such remaining units will be sold to the existing shareholders in proportion to the number of units subscribed for by them.

The Company may pay finders fees in cash and finders warrants (each exercisable to purchase one share for $0.15 for one year) to eligible finders in accordance with the policies of the TSXV.

Proceeds of the private placement will be used for funding exploration of the Buck property, consisting primarily of drilling (approximately $500,000), general exploration for high quality gold/silver properties in B.C. (approximately $200,000) and working capital (approximately $350,000).

All the securities issued pursuant to this private placement will be subject to a four month restricted resale period. Completion of the offering is subject to receipt of approval from the TSX Venture Exchange.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration requirement is available.

About San Marco

San Marco is a Canadian mineral exploration company actively pursuing world class gold, silver, zinc and copper projects with a focus in mining friendly jurisdictions in both British Columbia, Canada and Mexico.

The Company's principal focus and asset is the recently optioned Buck Property in north-central British Columbia that has large tonnage gold-silver-zinc potential in a mining-friendly region that includes many former and current operating mines. In addition, the Company's portfolio includes the several prospective, early stage exploration properties in Mexico.

For further information, contact:

Robert Willis, P. Eng.
Executive Director

National Instrument 43-101 Disclosure

This news release has been approved by San Marco's CEO, Robert D. Willis, P. Eng. a "Qualified Person" as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators. He has verified the data disclosed, including sampling, analytical and test data, underlying such technical information by reviewing the assay reports provided to San Marco by its independent testing laboratory.

Forward Looking Information

Information set forth in this document may include forward-looking statements. While these statements reflect management's current plans, projections and intents, by their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the control of San Marco Resources Inc. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on these forward-looking statements. San Marco's actual results, programs, activities and financial position could differ materially from those expressed in or implied by these forward-looking statements.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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