Surge Copper Announces Acquisition of Additional Claims in Huckleberry District and Appointment of New Board Chair

Rhea-AI Summary

Surge Copper Corp. (TSXV: SURG, OTCQX: SRGXF) announced the acquisition of a 100% interest in the Sylvia mineral claims in British Columbia's Huckleberry district. The claims, totaling 572 hectares, host a potential porphyry target with historical drilling showing significant copper and molybdenum grades. Surge will issue 390,000 common shares and grant a 2% net smelter return royalty with a buyback option for C$1 million. The appointment of Christian Kargl-Simard as Non-Executive Chairman was also announced, aiming to advance the company's exploration and development strategy.

Positive

• Acquisition of Sylvia claims enhances exploration potential in a copper-rich district.
• Historical drilling shows promising mineralization (63m of 0.33% copper).
• Low-cost, year-round exploration possible due to favorable terrain.
• Appointment of a new chairman with significant industry experience.

Negative

• Share issuance may lead to shareholder dilution.

TSX-V: SURG
OTCQX: SRGXF
Frankfurt: G6D2

VANCOUVER, BC, Sept. 28, 2021 /PRNewswire/ - Surge Copper Corp. (TSXV: SURG) (OTCQX: SRGXF) (Frankfurt: G6D2) ("Surge" or the "Company") is pleased to announce that it has executed a definitive asset purchase agreement to acquire a 100% interest in the Sylvia mineral claims located in the northern area of the Huckleberry district in central British Columbia, contiguous with the Berg Property and the Company's other 100% owned claims in the area (see Figure 1).

The Sylvia claims host an underexplored porphyry target consisting of a 500 by 2,000 metre sulfide alteration zone that straddles the south contact of a granodiorite stock. Historical drilling in 1974 by Hudson Bay Oil and Gas Company Ltd. intercepted 63 metres grading 0.33% copper and 0.02% molybdenum, starting at 9.1 metres downhole, with the hole ending in mineralization (BC Assessment Report 5213). The claim area was also included in the recently completed district-wide airborne geophysical survey, allowing the Company to accelerate its exploration planning in the area. The Sylvia claims comprise two mineral claims totalling approximately 572 hectares. Under the terms of the agreement, Surge will issue to three vendors a total of 390,000 common shares and will grant the vendors a 2% net smelter return royalty on the claims, subject to a perpetual buyback right on half of the royalty for C$1 million. The terms of the agreement and issuance of Surge shares are subject to TSX Venture Exchange approval, and the shares will be subject to a statutory four-month hold period.

The acquisition of these claims provides the Company with another quality porphyry exploration target with known copper mineralization within this highly prospective porphyry district. The Sylvia claims occur in relatively flat, low-lying terrain with direct road access, allowing for low cost and potentially year-round exploration of the target.

Appointment of New Board Chair

The Company is also pleased to announce the appointment of Christian Kargl-Simard as Non-Executive Chairman of the Board. Christian has served as a director of Surge since the September 2020 recapitalization of the Company and has played an important role in the development of the business over the last twelve months. Christian has served as President, CEO, and director of Adventus Mining Corporation since December 2016. Patrick Glazier, who has served as Chairman of the Company since 2016, remains an independent director of the Company.

Christian Kargl-Simard commented: "It's an honour to be appointed as Chairman of Surge, and to be working with such a high-calibre board. In just one year the business has advanced rapidly, having raised over C$20 million in new equity, completed several district consolidation deals including the Berg transaction, and drilled over 44,000 metres. This district is one of the most prospective for copper in British Columbia, and we look forward to making new discoveries on the back of our district-wide geophysical survey, and working to realize the mining potential of our resources."

Qualified Person

Dr. Shane Ebert P.Geo., is the Qualified Person for the Ootsa and Berg projects as defined by National Instrument 43-101 and has approved the technical disclosure contained in this news release.

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, owned by Imperial Metals. The Ootsa Property contains pit constrained NI 43-101 compliant resources of copper, gold, molybdenum, and silver in the Measured and Indicated categories.

The Company is also earning into a 70% interest in the Berg Property from Centerra Gold. Berg is a large, advanced stage exploration project located 28 km northwest of the Ootsa deposits. Berg contains pit constrained NI 43-101 compliant resources of copper, molybdenum, and silver in the Measured and Indicated categories. Combined, the adjacent Ootsa and Berg properties give Surge a dominant land position in the Ootsa-Huckleberry-Berg district and control over four advanced porphyry deposits.

On Behalf of the Board of Directors

"Leif Nilsson"
CEO and Director

For Further information, please contact:
Telephone: +1 604 416 2978
info@surgecopper.com
http://www.surgecopper.com

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. All statements included herein, other than statements of historical fact, are forward looking statements, including but not limited to the Company's plans regarding the Berg Property and the Ootsa Property. 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, the ability to obtain adequate financing to conduct its planned exploration programs, inability to procure labour, equipment and supplies in sufficient quantities and on a timely basis, equipment breakdown, impacts of the current coronavirus pandemic, 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 suggestions 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.

FAQ

What is the significance of the Sylvia mineral claims acquisition by Surge Copper Corp?

The acquisition enhances Surge's exploration potential in a promising copper district, with historical drilling indicating significant mineralization.

How many shares will Surge Copper issue for the acquisition of the Sylvia claims?

Surge Copper will issue a total of 390,000 common shares to the vendors as part of the acquisition.

What financial terms are associated with the Sylvia claims acquisition?

The agreement includes a 2% net smelter return royalty on the claims, with a buyback option for C$1 million.

Who is the newly appointed chairman of Surge Copper Corp?

Christian Kargl-Simard has been appointed as the Non-Executive Chairman of Surge Copper Corp.

What historical drilling results were reported for the Sylvia claims?

Historical drilling in 1974 reported 63 meters of mineralization grading 0.33% copper and 0.02% molybdenum.