Surge Announces Letter of Intent with Evolution Mining Limited to Enter into a Joint Venture Agreement
Surge Announces Letter of Intent with
Evolution Mining Limited to Enter into a Joint
Venture Agreement
West Vancouver, British Columbia--(Newsfile Corp. - September 16, 2025) - Surge Battery Metals
Inc. (TSXV: NILI) (OTCQX: NILIF) (FSE: DJ5) (the "Company" or "Surge") is pleased to announce that it
has entered into a non-binding letter of intent ("LOI") with Evolution Mining Limited ("Evolution"), pursuant
to which the parties will form a Joint Venture ("JV") for the purpose of continuing the development of the
Nevada North Lithium Project ("NNLP").
The initial focus of the JV will be facilitating the completion of a Preliminary Feasibility Study ("PFS") for
the purpose of evaluating the potential for the proposed development of the NNLP. The LOI
contemplates that the entering into of a binding Joint Venture Agreement ("JVA") is conditional upon
each party completing its respective due diligence investigations, each party obtaining their necessary
regulatory and corporate approvals and the completion by Surge of an equity financing for gross process
of at least CAD$3,000,000.
Terms of the LOI
Upon formation of the JV, each party will contribute their respective rights to the mineral claims and
mineral rights comprising the NNLP and Surge's ownership interest in the JV shall be 77% (with
Evolution owning the remaining 23% of the ownership interests).
Surge will contribute to the JV all of its mineral claims and mineral rights that comprise the NNLP.
Evolution will contribute its 75% mineral interest in the 880-acre private land portion within the NNLP.
These mineral interests were part of the Preliminary Economic Assessment recently announced by
Surge. In addition, Evolution will contribute its 75% mineral rights in over 21,000 acres of private land in
and around the NNLP.
Maps of the mineral rights and claims of the JV are set out in figures 1 and 2
below.
The additional Evolution mineral rights package includes highly prospective rights to the south of the
main claim block. To the north, the private mineral rights cover possible extensions of identified
favorable clay units. In addition, the package includes mineral rights in the historic Contact district and
the Knoll Creek and Salmon Falls Creek drainages.
Following the formation of the JV, Evolution will sole fund, in stages and subject to certain conditions, up
to CAD$10,000,000 to the JV for the purpose of funding a PFS in exchange for additional ownership
interests in the JV. Assuming Evolution satisfies the funding obligation in its entirety, Evolution's
ownership interest in the JV will increase to 32.5% (with Surge owning the remaining 67.5% ownership
interest). Any additional expenditures of the JV shall be jointly funded by Surge and Evolution on a pro
rata basis in accordance with their ownership interests in the JV.
The JVA will contain industry standard terms for managing the Project. The JV shall be governed by an
operating committee comprising representatives of both parties and Surge shall act as manager of the
JV so long as it holds more than 50% of the ownership interests.
Prior to entering into the JVA, Surge
and Evolution will prepare and agree to a detailed budget and schedule in connection with completing
the PFS and a schedule setting out the milestones for the use of the funds.
The LOI also contemplates that:
Surge grants Evolution a legally binding exclusivity period, ending on November 4, 2025.
Under the JVA, each party will be required to comply with certain provisions prior to transferring a
direct or indirect interest in the JV in certain circumstances (including certain tag rights, drag rights
and rights of first refusal in favour of the other party).
Mr. Greg Reimer, Chief Executive Officer and Director
, commented, "We are extremely pleased to
partner with Evolution Mining Limited on the advancement of the Nevada North Lithium Project. This
collaboration not only combines relevant assets, but also the strong lithium technical knowledge of Surge
with Evolution's proven track record in mine development and operational excellence. Together we are
well positioned to unlock the full potential of this highly prospective lithium asset and contribute to the
growing demand for critical battery metals."
Figure 1
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9838/266606_380054c3f4804a75_001full.jpg
Figure 2
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9838/266606_380054c3f4804a75_002full.jpg
About Surge Battery Metals Inc.
Surge Battery Metals, a Canadian-based mineral exploration company, is at the forefront of securing the
supply of domestic lithium through its active engagement in the Nevada North Lithium Project. The
project focuses on exploring for clean, high-grade lithium energy metals in Nevada, USA, a crucial
element for powering electric vehicles. With a primary listing on the TSX Venture Exchange in Canada
and the OTCQX Market in the US, Surge Battery Metals Inc. is strategically positioned as a key player in
advancing lithium exploration.
About Evolution Mining Limited
Evolution Mining is a leading, globally relevant gold miner. Evolution operates six mines, comprising five
wholly-owned mines - Cowal in New South Wales, Ernest Henry and Mt Rawdon in Queensland, Mungari
in Western Australia, and Red Lake in Ontario, Canada, and an 80% share in Northparkes in New South
Wales.
About the Nevada North Lithium Project
The Company owns the Nevada North Lithium Project located in the Granite Range southeast of
Jackpot, Nevada about 73 km north-northeast of Wells, Elko County, Nevada. The first three rounds of
drilling, completed in 2022, 2023, and 2024, identified a strongly mineralized zone of lithium bearing
clays occupying a strike length of more than 4,300 meters and a known width of greater than 1500
meters. Highly anomalous soil values and geophysical surveys suggest there is potential for the clay
horizons to be much greater in extent, while wide drill spacing allows for significant upside to occur
during infill drilling. The Nevada North Lithium Project has a pit-constrained Inferred Resource containing
an estimated 8.65 Mt of Lithium Carbonate Equivalent (LCE) grading 2,955 ppm Li at a 1,250 ppm
cutoff. The recently completed PEA reported an after-tax NPV
8
% US $9.17 Billion and after-tax IRR of
22.8% at $24,000/ t LCE and an OPEX of US $5,243/t LCE.
On behalf of the Board of Directors
"Greg Reimer"
Greg Reimer,
President & CEO
Contact Information
Email:
Phone: 604-662-8184
Website:
surgebatterymetals.com
Keep up-to-date with Surge Battery Metals:
YouTube
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
This document may contain certain "Forward-Looking Statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When
used in this news release, the words "anticipate", "believe", "estimate", "expect", "target, "plan" or
"planned", "possible", "potential", "forecast", "intend", "may", "schedule" and similar words or
expressions identify forward-looking statements or information. Forwards-looking statements herein,
include statements related to the conditional financing, the JV, including the terms, management and
governance thereof, successfully negotiating and entering into the JVA, Evolution's initial funding of the
JV and the map of mineral rights/claims of the JV.
Such statements represent the Company's current
views with respect to future events and are necessarily based upon several assumptions and estimates
that, while considered reasonable by the Company, are inherently subject to significant business,
economic, competitive, political, environmental (including endangered species, habitat preservation and
water related risks) and social risks, contingencies, and uncertainties, including risks related to the
ability of the Company to complete the conditional financing, the ability of the Company and Evolution to
finalizing the JVA (and any other definitive agreements) on the terms currently contemplated or at all,
Evolution's satisfaction of its funding obligation and obtaining requisite approvals. Many factors, both
known and unknown, could cause results, performance, or achievements to be materially different from
the results, performance or achievements that are or may be expressed or implied by such forward-
looking statements. The Company does not intend, and does not assume any obligation, to update these
forward-looking statements or information to reflect changes in assumptions or changes in
circumstances or any other events affecting such statements and information other than as required by
applicable laws, rules, and regulations.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/266606