African Rainbow Minerals (ARM), a diversified mining company based in Johannesburg, has announced a significant move in its portfolio expansion by entering into a subscription agreement for a private placement financing with Canada’s Surge Copper. This strategic investment, valued at C$3.8-million, sees ARM acquiring 39,608,708 common shares of Surge Copper through its wholly-owned subsidiary, ARM Copper, effectively owning 15% of Surge Copper upon the completion of the placement. This investment is contingent upon obtaining approvals from the TSX Venture Exchange and the South African Reserve Bank.
Led by Executive Chairperson Dr. Patrice Motsepe, ARM is listed on the Johannesburg Stock Exchange and is recognized as a steward in the mining sector, particularly in minerals and metals crucial for decarbonization and sustainable development. This acquisition aligns with ARM’s commitment as a member of the International Council on Mining and Metals to promote mining practices that contribute to sustainable development.
Surge Copper is at the forefront of developing an emerging critical metals district in British Columbia, which is poised to play a pivotal role in the low-carbon energy transition. Surge’s extensive mineral claim package in this district features multiple advanced porphyry deposits. These deposits contain compliant resources of copper, molybdenum, gold, and silver, all of which are essential for electrification technologies and the broader shift towards sustainable energy solutions.
The Berg project, wholly owned by Surge, showcases a significant concentration of copper, molybdenum, silver, and gold across measured, indicated, and inferred categories. In addition to the Berg project, Surge holds the Ootsa Property exploration project. Ootsa encompasses the Seel and Ox porphyry deposits adjacent to the Huckleberry copper mine, operated by Imperial Metals. Like Berg, Ootsa boasts a wealth of critical metals in various resource categories, further underscoring the strategic value of ARM’s investment in Surge Copper.
In June 2023, Surge Copper unveiled a compliant preliminary economic assessment (PEA) for the Berg project, delineating the contours of a 30-year mine life greenfield critical metals development project. This PEA highlighted the project’s potential to yield 2.6-million tonnes of copper equivalent and 1.7-million tonnes of copper. The mineral resource estimate revealed a combined measured and indicated resource of one billion tonnes, with notable gradings of 0.23% copper, 0.03% molybdenum, 4.6 g/t silver, and 0.02 g/t gold.
ARM’s investment in Surge Copper not only exemplifies its strategic pivot towards minerals critical for the future but also reinforces the company’s role in the global transition towards sustainable and low-carbon energy sources. This move is a testament to ARM’s vision of leveraging its mining expertise and resources to contribute significantly to the global effort in decarbonization and the adoption of electrification technologies. As such, ARM’s partnership with Surge Copper marks a crucial step forward in its commitment to sustainable mining practices and its broader strategic goals in the mining sector.
Source: Mining Weekly