(TheNewswire)
Vancouver, BC – TheNewswire - February 3, 2021 – Surge Exploration Inc. (“the Company” or “Surge”)(TSXV:SUR ) , ( OTC:SURJF ) , ( FRA:DJ5C) announces that it hasarranged and closed a non-brokered private placement financingoffering of 40,000,000 units (“Units”) at a price of $0.06 perUnit for gross proceeds of $2,400,000.
Each Unit is comprised of one common share and oneshare purchase warrant (“Warrant”). Each Warrant will entitlethe holder thereof to purchase one additional common share of theCompany at an exercise price of $0.08 per share for a period of fiveyears from closing, subject to TSX Venture Exchange (“Exchange”)approval.
The Company also paid Finder fees in the amount of3,950,000 shares and 1,975,000 finder warrants in connection with theprivate placement. The finder’s warrants are on the same terms asthe financing warrants. The finder fees are subject to Exchangeapproval.
All securities issued in connection with the privateplacement will be subject to a four?month and a day hold periodexpiring on June 4, 2021 in accordance with applicable CanadianSecurities Laws.
The proceeds of the Private Placement will be used forexploration and development and for general working capitalpurposes .
Insiders of the Company purchased a total of 500,000units under the Private Placement, which is considered a related partytransaction within the meaning of Multilateral Instrument61-101 Protection ofMinority Security Holders in Special Transactions (" MI61-101 "). The Company relied on theexemptions from the valuation and minority shareholder approvalrequirements of MI 61-101 contained in Sections 5.5(a) and 5.7(a),respectively, of MI 61-101 in respect of such insiderparticipation.
About Surge ExplorationInc.
The Company is a Canadian-based mineral explorationcompany which has been active in the resource sector in BritishColumbia and elsewhere in Canada.
Vancouver Island Caledonia (PolyMetallic) Project, British Columbia
Surge Exploration Inc. has entered into a PropertyOption Agreement to acquire a 100% interest in seven (7) mineralclaims known as the Caledonia, Cascade and Bluebell, subject to a NSR
between 1-2%. Located in the Nanaimo Mining District ofnorthern Vancouver Island, the claims are adjacent to the jointventure partnership between Freeport-McMoRan and Northisle Copper and Gold Inc. Under the terms of this joint venture partnershipagreement, Freeport-McMoRan can earn up to a 65% withC$24 million in exploration expenditures over sevenyears. Freeport-McMoRan is currently one of theworld’s largest copper producers.
On Behalf of the Board ofDirectors
“Rick Wilson”
Richard Wilson
President & CEO
778-945-2656
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release. This news release may containforward?looking statements which include, but are not limited to,comments that involve future events and conditions, which are subjectto various risks and uncertainties. Except for statements ofhistorical facts, comments that address resource potential, upcomingwork programs, geological interpretations, receipt and security ofmineral property titles, availability of funds, and others areforward?looking. Forward?looking statements are not guarantees offuture performance and actual results may vary materially from thosestatements. General business conditions are factors that could causeactual results to vary m
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