Surge Copper Amends the Terms of Its Recently Announced Financing, While Ootsa Drill Preparations Are Underway
S U R G E
C O PPER C O R P
PO Box 10351 888 - 700 West Georgia Street Vancouver, BC V7Y 1G5 P: 604-718-5454 F:604-646-2054
SURGE COPPER AMENDS THE TERMS OF ITS RECENTLY ANNOUNCED FINANCING, WHILE
OOTSA DRILL PREPARATIONS ARE UNDERWAY
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.
October 2, 2020, Vancouver, British Columbia – Surge Copper Corp. (the “Company” or “Surge
Copper”) (TSX‐V:SURG), has amended the terms of the financing announced on September 29,
2020. The Company has had very strong individual and institutional investor demand for the
financing, including participation by Altius Resources Inc. and 6 other resource focused
institutions, and has increased the flow‐through component from C$5,454,545 to C$6,000,000.
The total interest in the financing was multiples of the total placement size, including the
participation of over 50 entities. The new board and advisory members are subscribing to
approximately half of the financing.
Amended Financing
Total proceeds of the non‐brokered private placement will still be C$6.5 million with the
amended offering consisting of up to 3,846,154 units priced at C$0.13 per unit for gross proceeds
up to C$500,000 (the “HD Units”) and 40,000,000 flow‐through units priced at C$0.15 for gross
flow through proceeds of up to C$6,000,000 (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 the 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 9, 2020, and the FT Units are expected
to close on or around October 23, 2020. This financing is subject to final TSX Venture Exchange
approval.
Ootsa Drilling Update
Planning is underway to mobilize a drill rig to the Ootsa property to drill test a new geophysical
target recently discovered on the east side of the Seel trend, among other exploration targets
and resource expansion drilling. A field crew will be dispatched to Ootsa next week to begin
making preparations. Details of the full drill program will be announced in the next few weeks.
The project has full exploration permits in good standing until March 31, 2023, and is supported
by all‐season camp facilities and road.
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 resources 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 rates 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 these 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 materially 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, equipment
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 always 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.