Surge Battery increases financing, arranges another

Executive Summary

• Surge Battery Metals Inc. increased its non‑brokered financing to a total of up to $25 million by expanding its Listed Issuer Financing Exemption (LIFE) offering and adding a concurrent private placement.
• The combined offerings will issue up to 27,777,780 units at C$0.90 per unit, consisting of one common share plus half a warrant each; gross proceeds are projected at ≈ $25 million.
• Proceeds are earmarked for advancing the Nevada North lithium project (pre‑liminary and definitive feasibility studies) and general working capital, strengthening the company’s balance sheet.

Key Details

• LIFE Offering: 22,222,000 units → gross proceeds $19,999,800 (up from $15 M). Fully subscribed expected.
• Concurrent Private Placement: up to 5,555,780 units → gross proceeds up to $5,000,202.
• Total Units Offered: up to 27,777,780; total gross proceeds up to $25,000,002.
• Unit Composition: each unit = 1 common share + ½ of a common‑share purchase warrant.
• Warrant Terms: exercise price $1.35, exercisable any time after 60 days from issuance and until three years post‑issuance.
• Pricing: C$0.90 per offered unit for both offerings.
• Use of Proceeds:
• Additional costs for the preliminary feasibility study of Nevada North lithium project.
• Funding for a definitive feasibility study of the same project.
• General working capital.
• Advisors & Fees: 3L Capital Inc. acting as financial adviser; finders’ fees up to 6 % cash of gross proceeds and 6 % warrants of units sold to introduced purchasers.
• Closing Date: expected on or about February 3, 2026, subject to TSX Venture Exchange approval.
• Regulatory Notes: LIFE offering exempt from statutory hold period; private placement subject to a four‑month hold period under Canadian securities law.

Notable Quotes

“The increase of our financing to $25‑million reflects exceptionally strong investor demand and growing confidence in the quality and scale of the Nevada North lithium project… This financing significantly strengthens our balance sheet and provides the capital required to aggressively advance both our preliminary and definitive feasibility work.” – Graham Harris, Chairman

Materiality Assessment: Material – Positive** (significant capital raise that materially enhances the company’s ability to fund key project milestones).