Surge Copper Outlines Pre-Feasibility Technical Work Programs at Berg and Announces Additional Private Placement for up to $1.0 million
PO Box 10351 888-700 West Georgia Street, Vancouver, BC, Canada, V7Y 1G5
www.surgecopper.com
TSX-V: SURG
OTCQB: SRGXF
Frankfurt: G6D2
Telephone: +1 (604) 781-5454
Email: [email protected]
April 10, 2024
NEWS RELEASE
Surge Copper Outlines Pre-Feasibility Technical Work Programs at Berg and Announces
Additional Private Placement for up to $1.0 million
April 10, 2024, Vancouver, British Columbia – Surge Copper Corp. (TSXV: SURG) (OTCQB:
SRGXF) (Frankfurt: G6D2) (“Surge” or the “Company”) is pleased to provide an update on
planned technical work programs in support of a pre-feasibility study for the 100%-owned Berg
copper-molybdenum-precious metals project located in central British Columbia. The Company
is in the advanced planning stages for several programs as outlined below which are expected to
commence in the coming weeks and extend through the summer field season, with further
announcements to be provided upon commencement. The development of these programs is
based on the recommendations contained in the preliminary economic assessment for the Berg
Project, titled “Berg Project - NI 43-101 Technical Report and Preliminary Economic Assessment”
dated effective as of June 12, 2023 (see June 13, 2023 press release) (the “PEA”) which outlined
a total budget of approximately C$7.85 million to complete a pre-feasibility study, including
approximately 8,500 metres of drilling, of which approximately 2,000 metres was completed in
2023.
Metallurgy – a test work program will aim to advance bulk copper-molybdenum
concentrate flotation parameters and to confirm copper, molybdenum, silver, and gold
recovery performance into separate copper and molybdenum concentrates. This program
is fully scoped and suitable composite sample material is available and awaiting shipment.
Environmental Baseline – a large footprint data collection program will commence during
the 2024 summer field season to gather time series baseline data in support of a potential
environmental assessment.
Geochemistry – field operations at the Berg deposit in 2024 will collect samples from
various areas within the PEA pit shape which will be used in laboratory-based
geochemistry test programs to characterize key parameters relevant to waste rock and
tailings design.
Geotechnical – field operations will aim to advance geotechnical and hydrogeological
programs to solidify key mining assumptions and pit parameters where possible in
conjunction with ongoing exploration drilling programs.
Advancing the high-priority Berg SW Target – fieldwork in 2023 identified a new
porphyry exploration target southwest of Berg containing a 600 metre by 300 metre and
Surge Copper Corp. 2
open copper in soil anomaly with a geophysical expression similar to the Berg deposit.
Surface mapping and sampling will be conducted early in the field season to advance the
target to a drill decision.
Leif Nilsson, Chief Executive Officer, commented: “ We are excited to be commencing these
critical technical work programs which are aimed at advancing the Berg Project and positioning
us well to complete a pre-feasibility study in 2025. The funding package provided by the previously
announced strategic investment and the additional side-car placement announced today will fully
fund this work program and provide the Company with additional flexibility to advance our highest-
priority exploration targets including the Berg SW target. As the fundamentals in the copper
market continue to improve, we are thrilled to be advancing the Berg Project which we believe is
well positioned to capture the significant growth in demand for critical metals like copper and
molybdenum in the coming decades.”
Side-Car Private Placement
In connection with the previously announced private placement (the “ Strategic Placement ”)
pursuant to which African Rainbow Minerals Limited (“ARM”), through its wholly-owned subsidiary,
has agreed to subscribe for 39,608,708 common shares of Surge (the “ Strategic Placement
Common Shares ”) at a price of $0.095 per Strategic Placement Common Share for gross
proceeds of approximately C$3,762,827 (see April 2, 2024 press release ), the Company
announces an additional non-brokered private placement to investors, other than ARM, of up to
10,000,000 common shares of Surge (the “ Side-Car Common Shares”) at a price of $0.10 per
Side-Car Common Share for aggregate gross proceeds of up to $1.0 million (the “ Side-Car
Private Placement”). Pursuant to the terms of the Strategic Placement, the Strategic Placement
Common Shares purchased by ARM will be increased based on the number of Side-Car Common
Shares issued under the Side-Car Private Placement such that ARM will acquire a 15.0% interest
in Surge on a non-diluted basis upon closing of the Strategic Placement. In the event the
maximum number of Side-Car Common Shares are issued under the Side-Car Private Placement,
a total of 1,764,705 additional Strategic Placement Common Shares will be purchased by ARM
under the Strategic Placement, resulting in total gross proceeds to Surge between the Strategic
Placement and the Side-Car Private Placement of approximately $5 million.
The net proceeds from the Side-Car Private Placement will be used to fund the advancement of
the Berg Project, exploration, and for working capital and general corporate purposes. The Side-
Car Private Placement is scheduled to close on or about April 24, 2024, and is subject to certain
customary conditions, including but not limited to, receipt of TSX Venture Exchange conditional
acceptance. The Side-Car Common Shares will be subject to a statutory hold period of four
months and one day from the date of issuance. The Company may pay certain finders a cash fee
equal to 6% of the aggregate gross proceeds raised from subscriptions under the Side-Car Private
Placement arranged by such finders.
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall
there be any sale of any securities in any jurisdiction in which such offer, solicitation, or sale would
be unlawful including any of the securities in the United States of America. The securities have
not been and will not be registered under the United States Securities Act of 1933, as amended
(the “1933 Act”) or any state securities laws and may not be offered or sold within the United
States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933
Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption
from such registration requirements is available.
Surge Copper Corp. 3
Qualified Person
Dr. Shane Ebert P.Geo., is the Qualified Person for the Berg Project and the Ootsa Property as
defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 41-101")
and has approved the technical and scientific disclosure contained in this news release.
About Surge Copper Corp.
Surge Copper Corp. is a Canadian company that is advancing an emerging critical metals district
in a well-developed region of British Columbia, Canada. The Company owns a large, contiguous
mineral claim package that hosts multiple advanced porphyry deposits with pit-constrained NI 43-
101 compliant resources of copper, molybdenum, gold, and silver – metals which are critical
inputs to the low-carbon energy transition and associated electrification technologies.
The Company owns a 100% interest in the Berg Project, for which it announced a maiden PEA
in June 2023 outlining a large-scale, long-life project with a simple design and high outputs of
critical minerals located in a safe jurisdiction near world-class infrastructure. The PEA highlights
base case economics including an NPV8% of C$2.1 billion and an IRR of 20% based on long-
term commodity prices of US$4.00/lb copper, US$15.00/lb molybdenum, US$23.00/oz silver, and
US$1,800/oz gold. The Berg deposit contains pit-constrained 43-101 compliant resources of
copper, molybdenum, silver, and gold in the Measured, Indicated, and Inferred categories.
The Company also owns a 100% interest in the Ootsa Property, an advanced-stage exploration
project containing the Seel and Ox porphyry deposits located adjacent to the open pit Huckleberry
Copper Mine, owned by Imperial Metals. The Ootsa Property contains pit-constrained NI 43-101
compliant resources of copper, gold, molybdenum, and silver in the Measured, Indicated, and
Inferred categories.
On Behalf of the Board of Directors
“Leif Nilsson”
Chief Executive Officer
For further information, please contact:
Riley Trimble, Corporate Communications & Development
Telephone: +1 604 416 2978
Email: [email protected]
Twitter: @SurgeCopper
LinkedIn: Surge Copper Corp
https://www.surgecopper.com
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",
Surge Copper Corp. 4
"expects", "plans", or "anticipates" or the negative of these terms or other comparable terminology.
All statements included herein, other than statements of historical fact, are forward-looking
statements, including but not limited to: the planned technical work programs in support of a pre-
feasibility study for the Berg Project, including timing and results thereof, along with the timing for
announcing same; the Side-Car Private Placement, including the number of Side-Car Common
Shares to be issued, receipt of TSX Venture Exchange conditional acceptance, and closing of the
Side-Car Private Placement, including the timing thereof; the Strategic Placement, including the
number of Strategic Placement Common Shares to be issued in connection therewith; and the
Company’s plans regarding the Berg Project and the Ootsa Property. 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, the ability to obtain adequate financing to conduct its planned exploration programs,
inability to procure labour, equipment, and supplies in sufficient quantities and on a timely basis,
equipment breakdown, impacts of the current coronavirus pandemic, 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 suggestions 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.