Surge Battery Metals Announces the Acquisition of the Remaining 20% Interest in the Surge Nickel Project BC.
Surge Battery Metals Inc.
3028 Quadra Court
Coquitlam, BC, Canada V3B 5X6
778-945-2656
www.surgebatterymetals.com
Surge Battery Metals Announces the Acquisition of the Remaining 20%
Interest in the Surge Nickel Project BC.
Monday, April 3, 2023: Coquitlam, BC; Surge Battery Metals Inc. (the “Company” or “Surge”) (TSXV:
NILI, OTC: NILIF, FRA: DJ5C) is pleased to announce that it has entered into an option agreement with
Nickel Rock Resources Inc. (“Nickel Rock”) dated March 31, 2023, whereby the Company may acquire
the remaining 20% interest in the HN4 and the N100 mineral claims , located in central BC (the
“Transaction”). The Transaction is a “related party” party transaction and is subject to TSX Venture
Exchange (“Exchange”) approval.
Previously, the Company ha d a Property Option Agreement to earn an undivided 80% interest in
certain mineral claims from Nickel Rock (see news release dated July 8, 2021). The Project (The
Surge Nickel Project) consists of two non-contiguous mineral claims groups consisting of six mineral
claim blocks located in central British Columbia. One claim in the Mount Sidney Williams area (claim
HN4), covers 1863 hectares immediately south of and adjacent to the Decar Project, currently being
advanced by FPX Resources, and 5 claims in the Mitchell Range area, northeast of Decar, (N100
Group) covering 8659 hectares. Therefore, as a result of the consolidation Agreement, Surge Battery
Metals will own a 100% undivided ownership in the claims (t hree of the claims are subject to 2%
NSR, including the HN4 claim and the two southernmost claims of the N100 claim group ). Both
projects target the nickel /iron alloy mineral "Awaruite" and are hosted by serpentinized intrusive
rocks of the Trembleur Ultramafic Unit that also host s, regionally, two large scale nickel /iron
deposits under exploration and development by FPX Nickel Corp.
Consideration Payable to Nickel Rock: Upon the payment of 1,000,000 commons shares of the
Company and in consideration of Surge having fully completed the terms of the underlying Option
Agreement dated July 8th, 2021, Nickel Rock shall transfer 100 % interest in the claims the Surge. All
securities issued in connection with the Transaction are subject to a four month and a day hold period
in accordance with applicable Canadian Securities Laws.
Pursuant to TSXV Policy 5.9 and Multilateral Instrument 61 -101 -- Protection of Minority Security
Holders in Special Transactions ("MI 61 -101"), the Option Agreement constitutes a "related party
transaction" due to the fact that CFO is also the CFO of Nickel Rock. The Company relied on Section
5.5(a) of MI 61 -101 for an exemption from the formal valua tion requirement and Section 5.7(1)(a)
of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 as
the fair market value of the transaction did not exceed 25% of the Company's market capitalization.
Mr. Greg Reimer, President and CEO stated “The consolidation into a 100% ownership position in the
HN4 and N100 group of claims provides the Company with much greater flexibility when charting
future exploration activities for the Surge Nickel Project. The properties have demonstrated metallic
mineralization including nickel, cobalt, and chromium. Although nickel and cobalt mineralization on
the properties have not been well explored for, the presence of nickel in the form of the nickel/iron
alloy awaruite has recently been documented. We look forward to seeing this promising project
advanced in the future”.
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The Company also announces that it has completed and closed its previously announced private
placement raising total gross proceeds of $908,082 (See news releases dated March 17, 2023 and
March 27, 2023). The private placement is subject to final Exchange approval.
About Surge Battery Metals Inc. www.surgebatterymetals.com
Surge Battery Metals is a Canadian-based mineral exploration company active in the exploration for
lithium in Nevada and nickel /iron alloy in British Columbia whose primary listing is on the TSX
Venture Exchange. The Company's maintains a focus on exploration for high value battery metals
required for the electric vehicle (EV) market.
The Nevada North Lithium Project
Recently announced drill results (see News Release dated Jan 3, 2023) have demonstrated the
potential for a significant lithium discovery at the Nevada North Lithium Project located in Elko
County about 73 Km north-northeast of Wells, Nevada.
The maiden drilling program, consisting of eight widely spaced drill holes, has identified strong
lithium values (up to 5950 ppm) associated with a series of stacked blue-green clay layers up to 120.4
meter or 395 feet thick. To date mineraliza tion, as evidenced by drilling, has a strike length of
approximately 1,620 meters or 5,315 feet. Width of the mineralization is not as well determined
since the holes are mostly on a north -south alignment because of topography and access but is at
least 400 meters and soil anomalies indicate it is likely much more . The average lithium content
within all near-surface clay zones intersected in 2022 drilling, applying a 1,000-ppm cut-off,
was 3,254 ppm. The mineralization appears to be open to further expansion given the dimensions
of a widespread lithium soil anomaly, the result of surface exploration in 2022.
In addition, the Company has a Property Option Agreement to earn an undivided 80% interest in 16
mineral claims, comprising 640 acres located within Nevada's San Emidio Desert, known as the Galt
Property. Recent mineral exploration on the Galt claim group includes 51 playa sediment samples
collected for chemical analysis at ALS Geochemistry in Vancouver, B.C. Results of aqua regia leaching
of the samples show 68 to 852 parts per million lithium (mean 365 ppm), 5.3 to 201 ppm cesium
(mean 72 ppm) and 35 to 377 ppm rubidium (mean 180 ppm). Results from two seven -foot-deep
auger holes show lithium, cesium, and rubidium concentrations in the range of 143.5 to 773 ppm Li,
56.8 to 102.5 ppm Cs and 155 to 272 Rb.
Finally, the Company owns a 100% interest in 663 ha (1,640 acre) property in the Teels Marsh
Project located in Mineral County, Nevada. The property is in an active region for both lithium
exploration and production.
Nickel Projects, Northern BC
The Company has a Property Option Agreement to earn an undivided 80% interest in certain mineral
claims from Nickel Rock Resources Inc. The Project (The Surge Nickel Project) consists of two non -
contiguous mineral claims groups consisting of 6 mineral clai m blocks located in northern British
Columbia. One claim in the Mount Sidney Williams area (claim HN4), covers 1863 hectares
immediately south of and adjacent to the Decar Project, currently being advanced by FPX Resources,
and 5 claims in the Mitchell Range area, northeast of Decar, (N100 Group) co vering 8659 hectares.
Three of the claims are subject to 2% NSR, including the (HN4 claim and the two southernmost claims
of the N100 claim group). Both projects target the nickel -iron alloy mineral “Awaruite”, hosted by
serpentinized intrusive rocks of the Trembleur Ultramafic Uniton Behalf of the Board of Directors.
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On behalf of the Board of Directors
“Greg Reimer”
Greg Reimer,
President & CEO
Contact Information
Email: [email protected]
Phone: 778-945-2656
Website: surgebatterymetals.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Ven ture Exchange)
accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward‐looking statements which include,
but are not limited to, comments that involve future events and conditions, which are subject to vario us risks and uncertainties. Except for
statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and
security of mineral property titles, availability of funds, and others are forw ard‐looking. Forward‐looking statements are not guaranteeing
future performance and actual results may vary materially from those statements. General business conditions are factors that could cause
actual results to vary materially from forward‐looking statements.