Surge Copper Corp. Secures Strategic Investment from African Rainbow Minerals Limited

Surge Copper Corp., a Canadian mineral exploration and development company, has announced a significant milestone in its financing strategy with the signing of a subscription agreement with African Rainbow Minerals Limited (ARM).

African Rainbow Minerals Limited

Surge Copper Corp., a Canadian mineral exploration and development company, has announced a significant milestone in its financing strategy with the signing of a subscription agreement with African Rainbow Minerals Limited (ARM). This strategic partnership entails a private placement financing agreement that will see ARM becoming a major shareholder in Surge. The investment signifies a strong vote of confidence in Surge’s projects, particularly its Berg Project, and sets the stage for enhanced operational capabilities and community engagement initiatives.

Surge Copper Welcomes ARM as Strategic Investor

The subscription agreement between Surge Copper Corp. and African Rainbow Minerals Limited marks a pivotal moment for both companies. Under the terms of the agreement, ARM will subscribe for approximately 39.6 million common shares of Surge at a price of C$0.095 per share, representing a notable premium to the company’s recent market performance. This substantial investment positions ARM as a significant stakeholder in Surge, with approximately 15% ownership of the company’s issued and outstanding common shares.

Leveraging ARM’s Expertise in Mining Operations

ARM’s involvement as a strategic investor brings valuable expertise in the development and operation of large-scale mines to Surge Copper Corp. With a strong focus on operational efficiency and community engagement, ARM is poised to support Surge in advancing its Berg Project and exploring surrounding mineral targets. The partnership is expected to foster collaboration in project development and enhance Surge’s capabilities in navigating the complexities of the mining industry.

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Investor Rights Agreement and Governance Framework

In conjunction with the strategic placement, Surge and ARM will enter into an investor rights agreement (IRA) aimed at safeguarding ARM’s interests and facilitating collaboration between the two entities. The IRA grants ARM certain rights, including participation in future equity financings and representation on a technical advisory committee. Additionally, ARM Copper, a wholly-owned subsidiary of ARM, will commit to supporting management’s recommendations on key operational matters for a period of two years, ensuring alignment of interests between the parties.

Funding Strategic Initiatives and Regulatory Approvals

The net proceeds from the strategic placement will be allocated towards advancing Surge’s Berg Project, conducting exploration activities, and supporting general business operations. However, before the transaction can be finalized, regulatory approvals from the South African Reserve Bank and the TSX Venture Exchange, as well as acceptance from ARM, are required. The company anticipates that the strategic placement will be concluded within four to six weeks, subject to these approvals.

Surge Copper Corp.’s partnership with African Rainbow Minerals Limited represents a significant development in the company’s growth trajectory. By securing a strategic investor with extensive experience in mining operations and a commitment to sustainable practices, Surge is well-positioned to accelerate the development of its projects and create long-term value for its stakeholders. The collaboration between Surge and ARM underscores the importance of strategic partnerships in driving innovation and responsible resource development in the mining sector.

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