TSX-V-listed Surge Copper has initiated its prefeasibility study (PFS) work on its Berg property, in British Columbia, having completed a C$5-million funding package.
The biggest component of the funding package is the recently completed C$3.9-million strategic placement with JSE-listed African Rainbow Minerals (ARM), which is now a new cornerstone strategic investor.
ARM subscribed for about 41.37-million shares in Surge at C$0.095 each, representing a 15% interest in the Canada-focused company.
“We are delighted to welcome ARM as a new strategic investor in Surge and look forward to drawing on their project and operational expertise as we advance the Berg project,” said Surge CEO Leif Nilsson.
The company will run a six-week metallurgical testwork programme at Berg, designed to advance flow sheet design parameters and confirm metallurgical recoveries acceptable for use in the PFS.
The June 2023 preliminary economic assessment (PEA) for the Berg project outlines a long-life project with a simple design. The PEA highlights include a base case net present value of C$2.1-billion and an internal rate of return of 20%.