Surge Battery announces corporate update, $3.0 million financing
Surge Battery Metals Inc. [NILI-TSXV, NILIF-OTC, DJ5C-FRA] has released a corporate update and announced a non-brokered private placement of 10 million units priced at 30 cents each for gross proceeds of $3.0 million. Each unit will consist of one common share and one share purchase warrant. Each whole share purchase warrant can be exercised for three years at a price of 45 cents per share. Current shareholders will be participating for $2.5 million, the company said in a press release.
Surge Battery shares fell 14.7% or $0.055 to 32 cents, Monday. The shares trade in a 52-week range of 55 cents and 27 cents.
Proceeds will be used to complete a preliminary economic assessment and fund ongoing operations, the company said.
Surge Battery’s key asset is a100% interest in the Nevada North lithium project. It consists of 303 mineral claims, located in the Granite Range southeast of Jackpot, about 73 kilometres north-northeast of Wells, Elko County, Nevada.
The company said the first three rounds of drilling on the project, completed in 2022, 2023, and 2024, identified a strongly mineralized zone of lithium-bearing clays occupying a strike length of more than 4,300 metres and a known width of greater than 1,500 metres. The company has said highly anomalous soil values and geophysical surveys suggest that there is potential for the clay horizons to be much greater in extent, while wide drill spacing allows for significant upside to occur during infill drilling.
The Nevada North Lithium Project has a pit constrained resource containing an estimated 8.65 million tonnes of Lithium Carbonate Equivalent (LCE) grading 2,951 ppm Li at a 1,250 ppm cutoff.
In a corporate update, the company said it has been in talks with a strategic investor to fund the company through a bankable feasibility study. It said this investor is a private company based in the U.S. Surge said it worked through extensive due diligence and ultimately all corresponding legal documents for the funding. During the required regulatory review process, the TSX Venture Exchange noted that some provisions of the agreement that the investor required were outside of their policy framework. “While we worked closely with the TSXV and the investor and felt that we had come to an arrangement that would satisfy all parties, the investor has decided not to move forward with the financing,’’ Surge said in its press release.
Surge Battery was in the news two years ago when the company said it has appointed Dr. Vijay Mehta, a world-renowned expert on lithium mining, extraction and processing to its board of directors.