Craig Parry and Christian Kargl-Simard Join Surge Copper’S Board of Directors, James Hynes as Advisor and the Company Announces a C$6.5 Million Dollar Financing
S U R G E
C O P P E R C O R P
PO Box 10351 888 - 700 West Georgia Street Vancouver, BC V7Y 1G5 P: 604-718-5454 F:604-646-2054
CRAIG PARRY AND CHRISTIAN KARGL-SIMARD JOIN SURGE COPPER’S BOARD OF DIRECTORS,
JAMES HYNES AS ADVISOR AND
THE COMPANY ANNOUNCES A C$6.5 MILLION DOLLAR FINANCING
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY
FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.
September 29, 2020 , Vancouver, British Columbia – Surge Copper Corp. (the “Company” or
“Surge Copper”) (TSX -V:SURG), is pleased to announce that Craig Parry and Christian Kargl -
Simard have joined the Company’s Board of Directors (the “Board ”), and James Hynes has
become an advisor to the Company ’s Board . The Company also announces a C$6.5 million
combined hard dollar and flow -through equity financing to accelerate exploration and
development at the Company’s 100% owned Ootsa copper -gold-molybdenum project (the
“Project”) located in central British Columbia. The Company is mobilizing a diamond drill rig to
the Project for exploration drilling to begin in October 2020, with the main goal to test the new
chargeability target on the Seel Copper-Gold trend as announced on September 23, 2020. Details
of the full drill program will be announced once the drill is turning.
New Team Members
Three experienced and highly successful mining exec utives with a diverse range of experience
have joined the Surge Copper team and will play integral roles in accelerating the path forward.
Craig Parry – New Independent Board Member
He has over 20 years in the resources sector and is currently the Chairman of Skeena Resources
and Viszla Resources Corp. Craig is also the current President and CEO of IsoEnergy Ltd.
Craig is co -founder and Partner of Inventa Capital Corp., a private natural resource investment
company. Craig is a found er and shareholder of EMR Capital and former senior advisor to the
Fund. He was a co-founder of the Tigers Realm Group and was a co-founder of and appointed to
the Boards of Tigers Realm Minerals, Tigers Realm Metals and NexGen Energy Ltd. in 2011. Prior
to joining Tigers Realm, Craig was the Business Development Manager for G -Resources Limited
responsible for mergers and acquisitions and Principal Geologist - New Business at Oxiana Limited
responsible for strategy and business development initiatives in bulk and energy commodities.
At Rio Tinto he led exploration programs for iron ore, copper, diamonds, coal and bauxite in
Australia, Asia and South America and was Principal Geologist for the Kintyre Uranium project
pre-feasibility study. Craig holds an Honours Degree in Geology and is a Member of the AusIMM.
Christian Kargl-Simard - New Independent Board Member
Christian is a professional engineer with over 17 years of experience in the mining industry,
having worked both in technical and finance roles , and is currently the President and CEO of
Adventus Mining Corp. Prior to starting Adventus, he worked for 10 years in investment banking
roles at Raymond James Ltd. and Haywood Securities Inc. During his tenure in investment
banking, Christian was involved in financings raising more than $7 billion, and he assisted in
completing over 35 M&A transactions with companies such as Fortuna Silver Mines Inc., Altius
Minerals Corporation, Arizona Mining Inc., Victoria Go ld Corp., Atlantic Gold Corporation and
Tahoe Resources Inc. Christian also worked for Dynatec Corporation in Fort Saskatchewan,
Alberta up to its sale to Sherritt International Corp. in 2007, both in metallurgical engineering and
corporate development rol es. Christian is a professional engineer (Canada) and holds a B.A.Sc.
degree in Metallurgical Engineering from the University of British Columbia.
James Hynes – Advisor to Board
James is a geological engineer with over 20 years of experience in the resource sector. He is
currently the founder and Executive Chairman of Kore Mining Ltd. During his career, Mr. Hynes
has founded and served on the board of a number of private mining exploration companies. Mr.
Hynes holds a Bachelor of Science in Engineering (1999) specializing in geological and
geotechnical engineering from the University of New Brunswick.
Dr. Shane Ebert CEO of Surge commented, “We welcome all the new members to the team and
look forward to drawing on their experience and vision to create a significant British Columbia
focused copper company. With a strong balance sheet Surge will be able to expedite and expand
a drill program at the Project which will include testing the recently identified geophysical target
that could be a faulted part of the East Seel deposit, along with other attractive new copper and
precious metals targets.”
Terry Kuzma has resigned from the Surge Board of Directors to allow room for the new Board
appointees. The Company would like to thank Mr. Kuzma for his dedication and commitment to
the Company and looks forward to working with him in the future on a consulting basis.
Financing
Surge Copper announces a non-brokered private placement raising total proceeds of up to C$6.5
million. The offering will consist of up to 9,090,910 units priced at C$0.11 per unit for gross
proceeds up to C$1,000,000 (the “HD Units”) and 36,363,636 flow-through units priced at C$0.15
for gross flow through proceeds of up to C$5,454,545 (the “FT Units”). Each HD Unit is comprised
of one common share and one share purchase warrant. Each warrant will entitle the holder to
acquire an additional common share of the Company at an exercise price of C$0.17 per share for
a period of three years from the closing date of th e private placement. Each FT Unit will consist
of one flow-through share and one share purchase warrant entitling the holder to purchase an
additional non-flow-through common share at a price of C$0.17 for a period of three years.
The gross proceeds from the flow-through unit offering will be used to incur ‘Canadian
exploration expenses’ that will qualify as ‘flow through mining expenditures’ as those terms are
defined in the Income Tax Act which will be renounced to the initial purchasers of the flow
through shares. The net proceeds of the Offering will be used to expedite and expand upcoming
drilling at the Ootsa Property, to identify and advance new exploration opportunities, and for
general corporate and working capital needs.
The HD Units are expected to close on or around October 5, 2020, and the FT Units are expected
to close on or around October 21, 2020. This financing is subject to TSX Venture Exchange
approval.
About Surge Copper Corp.
The Company owns a 100% interest in the Ootsa Property, an advanced stage exploration project
containing the East Seel, West Seel and Ox porphyry deposits located adjacent to the open pit
Huckleberry Copper Mine. The property contains NI 43 -101 compliant r esources of 224 million
tonnes in the Measured and Indicated categories with contained metals of 1.1 billion pounds of
copper, 1 million ounces of gold, and 20 million ounces of silver as summarized in the table below.
On February 9, 2016, the Company announced a positive Preliminary Economic Assessment (PEA)
for the Ootsa Property with potential for low capital cost, low risk and rapid pay back utilizing
existing infrastructure in the district with a contract mining and toll milling scenario. The
Company currently has no agreement in place to access the existing mining and milling
infrastructure in the district.
Ootsa Project Pit Constrained Mineral Resource Estimate at $8.50/t NSR Cut-off Value
Category Tonnes
(‘000’s)
CuEq
%
Cu
%
Au
g/t
Mo
%
Ag
g/t
CuEq
M lbs
Cu
M lbs
Au
K oz
Mo
M lbs
Ag
K oz
Measured 187,148 0.38 0.23 0.15 0.021 2.8 1,568 934 916 85 17,089
Indicated 37,041 0.35 0.21 0.12 0.023 2.8 286 175 146 19 3,368
M&I 224,189 0.37 0.22 0.15 0.021 2.8 1,854 1,109 1,062 104 20,457
The current technical report supporting the resource statement and PEA is available on SEDAR or the Company’s website at
www.surgecopper.com and has an effective date of January 2016. The resource estimate uses $8.50 per tonne NSR cut-off value.
Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. There is no certainty that all
or any part of the mineral resource will be converted into mineral reserves. A ‘Measured Mineral Resource’ is that part of a mineral
resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can
be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support
production planning and evaluation of the economic viability of the deposit. An ‘Indicated Mineral Resource’ is that part of a
Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level
of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. Copper Equivalent (CuEq) calculations are based on base case metal price
(US$3/lb Cu, US$1260/oz Au, US$10.30/lb Mo, and US$17/oz Ag) and process recovery assumptions, and take into account
smelter payable r ates and refining costs. M&I = measured and indicated. The resource update and Preliminary Economic
Assessment was completed by P&E Mining Consultants Inc. in accordance with National Instrument 43 -101 Standards of
Disclosure for Mineral Projects.
Dr. Shane Ebert P.Geo. , is the Qualified Person for the Ootsa project as defined by National
Instrument 43-101 and has approved the technical disclosure contained in this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
“Shane Ebert”
President and Chief Executive Officer
For Further information, please contact:
Telephone: 250-964-2699
http://www.surgecopper.com
Or
Don Mosher
Corporate Development
Telephone: 604-685-6465
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 News Release contains forward-looking statements, which relate to future events. In some cases, you can identify
forward-looking statements by terminology such as "will", "may", "should", "expects", "plans", or "anticipates" or
the negative of t hese terms or other comparable terminology. These statements are only predictions and involve
known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of
activity, performance or achievements to be materia lly different from any future results, levels of activity,
performance, or achievements expressed or implied by these forward -looking-statements. Such uncertainties and
risks may include, among others, actual results of the Company's exploration activities being different than those
expected by management, delays in obtaining or failure to obtain required government or other regulatory approvals
or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipme nt
breakdown and bad weather. While these forward-looking statements, and any assumptions upon which they are
based, are made in good faith and reflect the Company's current judgment regarding the direction of its business,
actual results will almost alway s vary, sometimes materially, from any estimates, predictions, projections,
assumptions or other future performance suggests herein. Except as required by applicable law, the Company does
not intend to update any forward-looking statements to conform these statements to actual results.