VANCOUVER, BC, Oct. 28, 2020 /CNW/ - Surge Copper Corp. (the
"Company" or "Surge Copper") (TSX-V: SURG), announces it has closed
the non-brokered flow-through private placement announced
September 29, 2020 and October 2, 2020. The private placement
consisted of 40,000,000 flow-through units priced at C$0.15 for gross flow through proceeds of
C$6,000,000 (the "FT Units").
Each FT Unit consists of one flow-through share and one share
purchase warrant entitling the holder to purchase an additional
non-flow-through common share at a price of C$0.17 for a period of three years.
The gross proceeds from the flow-through unit offering will be
used to incur 'Canadian exploration expenses' that will qualify as
'flow through mining expenditures' as those terms are defined in
the Income Tax Act which will be renounced to the
initial purchasers of the flow through shares. The net proceeds of
the Offering will be used to expedite and expand drilling at the
Ootsa Property and to identify and advance new exploration
opportunities.
Exercise of Warrants
The Company is pleased to
announce that 7,066,166 previously issued share purchase warrants
have recently been exercised resulting in gross proceeds to the
Company of $1,085,992.
Dr. Shane Ebert, CEO of the
Company commented "The completion of this financing and the recent
exercise of warrants has Surge well-funded with over $7.6 million in the treasury. This funding
along with backing and strong support from a new group of
well-respected shareholders has the Company well positioned to
advance an aggressive exploration and acquisition busines
plan. A drill program at the Company's Ootsa project is
underway and the Company is fully funded to carry out ongoing
exploration activities through 2021".
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 contract mining and toll
milling scenario. The Company currently has no agreement in
place to access 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)
|
CuEq1
%
|
Cu
%
|
Au
g/t
|
Mo
%
|
Ag
g/t
|
Cu
M
lbs
|
Au
K
oz
|
Mo
M
lbs
|
Ag
K
oz
|
Measured
|
187,148
|
0.45
|
0.23
|
0.15
|
0.021
|
2.8
|
934
|
916
|
85
|
17,089
|
Indicated
|
37,041
|
0.42
|
0.21
|
0.12
|
0.023
|
2.8
|
175
|
146
|
19
|
3,368
|
M&I
|
224,189
|
0.44
|
0.22
|
0.15
|
0.021
|
2.8
|
1,109
|
1,062
|
104
|
20,457
|
The current technical report supporting the resource
statement and PEA is available on SEDAR or the Company's website
at www.surgecopper.com and has an effective date
of January
2016. The resource estimate uses an
$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, densities, shape and physical characteristics are
so well established that they can be estimated with confidence
sufficient to allow the appropriate application of technical and
economic parameters, to support production planning and evaluation
of the economic viability of the deposit. An 'Indicated
Mineral Resource' 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.
1Copper Equivalent (CuEq) calculations have
been calculated by Surge management using long term consensus metal
prices of US $3/lb Cu, $1700 oz Au, $22 oz
Ag, $10 lb Mo, and assume 100%
recovery with no provision for treatment or refining costs.
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
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 "anticipates" or the negative of
these terms or other comparable terminology. 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 or financing, inability to procure
equipment and supplies in sufficient quantities and on a timely
basis, equipment breakdown 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
suggests 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.
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SOURCE Surge Copper Corp.