Surge Copper closes $4.5-million private placement

Executive Summary

• Surge Copper Corp. closed a strategic private placement with African Rainbow Minerals Ltd., issuing 25,781,715 common shares at C$0.175 per share for gross proceeds of approximately $4.5 million.
• The transaction raises total financing to about $10.4 million, increasing ARM’s ownership to 19.9 % and providing capital to complete the Berg project prefeasibility study, advance exploration, and fund working‑capital needs.
• Shares are subject to a hold period of four months and one day; no finders’ fees were paid and the related‑party transaction relied on exemptions under TSX‑V Policy 5.9 and MI 61‑101.

Key Details

• Shares Issued: 25,781,715 common shares
• Price per Share: C$0.175 (≈ US$0.175)
• Gross Proceeds: ~US$4.5 million from this placement; cumulative financing to date ≈ US$10.4 million
• Post‑Closing Ownership: African Rainbow Minerals Ltd. now holds 19.9 % of Surge Copper’s outstanding common shares
• Use of Proceeds:
• Complete the prefeasibility study for the Berg project
• Support ongoing exploration activities (including Ootsa property)
• General working capital
• Hold Period: Shares subject to a lock‑up of four months and one day from issuance date
• Finders’ Fees: None paid in connection with this placement
• Related‑Party Transaction: Qualified as exempt under TSX‑V Policy 5.9 and MI 61‑101; no material change report filed due to timing considerations

Notable Quotes

“This strategic placement forms part of the larger financing that was announced earlier this summer. With the completion of all components, Surge has raised approximately $10.4 million in aggregate. These funds will allow us to complete the prefeasibility study for the Berg project and achieve our environmental assessment preparedness objectives.” – Leif Nilsson, Chief Executive Officer, Surge Copper Corp.