Surge Copper Announces $250,000 Non-Brokered Flow Through Private Placement to Fund 2020 Exploration at Ootsa
SURGE
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
SURGE COPPER ANNOUNCES $250,000 NON-BROKERED FLOW THROUGH PRIVATE
PLACEMENT TO FUND 2020 EXPLORATION AT OOTSA
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.
June 4, 2020 , Vancouver, British Columbia – Surge Copper Corp. (the “Company” or “Surge
Copper”) (TSX-V:SURG), announces a non-brokered pri vate placement offering of up to
2,777,778 flow-through units (“Units”) at a price of $0.09 per Unit to raise gross proceeds of
$250,000. Each flow-through unit is comprised of o ne common share, intended to qualify as a
flow-through share under the Income Tax Act (Canada ), and one-half share purchase
warrant. Each whole warrant will entitle the holde r to acquire an additional non-flow through
common share of the Company at an exercise price of $0.12 per share for a period of three years
from the closing date of the private placement.
In conjunction with this financing, the Company may pay a finder’s fee to eligible persons in
compliance with applicable securities laws and exchange policies. This financing is subject to TSX
Venture Exchange approval. The proceeds of the private placement will be used for exploration
and related flow through eligible expenses at the Company’s Ootsa Property.
Dr. Shane Ebert President of Surge commented, “With this financing the Company plans to restart
exploration at Ootsa focusing on the precious metal rich portions of the porphyry systems. A
high resolution and deep penetrating 3D Induced Pol arization survey is being planned to cover
the entire Seel trend. This survey will be utilize d, along with drill and surface data, to refine
structural interpretation and aid targeting of high er-grade copper-gold zones associated with
potassic alteration. One objective of the survey will be to try and identify the fault offset portion
of the high-grade East Seel deposit. A deep lookin g short interval magnetotelluric (MT) survey
will also be conducted over the Seel trend to help image the roots of the porphyry systems.”
The Ootsa Property is fully permitted, has an explo ration camp on site, and contains excellent
road access in addition to a network of secondary roads providing access to large portions of the
property. This infrastructure allows for low cost all-weather exploration.
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 cont ract mining and toll milling scenario. The
Company currently has no agreement in place to acce ss 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 resourc e statement and PEA is available on SEDAR or the Co mpany’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, dens ities, shape and physical characteristics are so we ll established that they can
be estimated with confidence sufficient to allow th e appropriate application of technical and economic parameters, to support
production planning and evaluation of the economic viability of the deposit. An ‘Indicated Mineral Re source’ 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$1 7/oz Ag) and process recovery assumptions, and take into account
smelter payable rates and refining costs. M&I = mea sured and indicated . The resource update and Preliminary Economic
Assessment was completed by P&E Mining Consultants I nc. in accordance with National Instrument 43-101 S tandards 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 "ant icipates" or
the negative of these terms or other comparable ter minology. These statements are only predictions and involve
known and unknown risks, uncertainties and other fa ctors 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 ac tivity,
performance, or achievements expressed or implied b y these forward-looking-statements. Such uncertaint ies and
risks may include, among others, actual results of the Company's exploration activities being differen t 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 su pplies in sufficient quantities and on a timely bas is, equipment
breakdown and bad weather. While these forward-look ing statements, and any assumptions upon which they are
based, are made in good faith and reflect the Compa ny's current judgment regarding the direction of it s business,
actual results will almost always vary, sometimes m aterially, from any estimates, predictions, project ions,
assumptions or other future performance suggests he rein. Except as required by applicable law, the Com pany does
not intend to update any forward-looking statements to conform these statements to actual results.