African Rainbow Minerals (JSE: ARI) has finalized a deal to purchase a 15% stake in Canadian exploration company Surge Copper (TSX-V: SURG) for $2.8 million (C$3.8m), marking a significant move to expand its presence in the copper sector.
Through its subsidiary ARM Copper, South Africa’s ARM will acquire 39.61 million common shares of Surge at C$0.095 each, at an 18% premium to the 20-day volume.
This strategic investment provides ARM with an entry point into a burgeoning critical metals district in British Columbia, Canada.
Surge Copper controls a contiguous mineral claim package hosting advanced porphyry deposits containing copper, molybdenum, gold, and silver.
These metals are essential for the global transition to low-carbon economies and electrification technologies.
Leif Nilsson, Surge Copper’s CEO, expressed enthusiasm about ARM’s involvement, citing their expertise in large-scale mine development and community engagement.
Among Surge’s assets is the Berg project in BC, boasting a preliminary economic assessment with promising metrics including a net present value of $1.55 billion (C$2.1bn) and a 30-year mine life.
The Berg project is estimated to produce 2.6 million tonnes of copper equivalent, with significant copper resources among other metals.
Additionally, Surge owns the Ootsa property exploration project, featuring the Seel and Ox porphyry deposits adjacent to Imperial Metals’ Huckleberry copper mine, further enhancing its mineral portfolio.
