Surge Copper closes C$4.5 million private placement with ARM

Surge Copper Corp. (TSXV: SURG) (OTCQB: SRGXF) (Frankfurt: G6D2) announced the completion of a strategic private placement with African Rainbow Minerals Limited (ARM). ARM purchased 25,781,715 common shares at C$0.175 per share, generating gross proceeds of approximately C$4.5 million.

The transaction increases ARM's ownership stake in Surge to 19.9%. The placement forms part of a larger financing effort that has raised approximately C$10.4 million in total for the Vancouver-based copper company.

"These funds will allow us to complete the pre-feasibility study for the Berg Project and achieve our environmental assessment preparedness objectives," said Chief Executive Officer Leif Nilsson in a statement.

Surge plans to use the proceeds to advance its flagship Berg Project, support exploration activities, and provide general working capital. The issued shares are subject to a four-month and one-day hold period from the date of issuance. No finder's fees were paid in connection with the placement.

The transaction constitutes a related party transaction under TSX Venture Exchange policies and Multilateral Instrument 61-101. Surge relied on exemptions from formal valuation and minority shareholder approval requirements, as the transaction value did not exceed 25% of the company's market capitalization.

Surge Copper operates copper projects in British Columbia, including the Berg Project, for which it published a preliminary economic assessment in June 2023. The assessment outlined an after-tax net present value of C$2.1 billion and an internal rate of return of 20% based on long-term commodity prices.

You May Also Be Interested In