Surge Battery Metals Amends Property Option Agreement on 16 Lithium Mining Claims in the Nevada San Emidio Desert
Vancouver, March 25, 2022 - Surge Battery Metals Inc. (the "Company" or "Surge") (TSXV:NILI), (OTC:NILIF), (FRA:DJ5C) announces that further to its news release dated March 2, 2022, the Company has amended the Property Option Agreement now dated March 23, 2022 with Paul Lechler, John Van de Sand, David White and Darren Howe (the "Optionors") whereby the Company may earn an undivided 80% interest in 16 mineral claims comprised of 640 acres (the "Property") and located within Nevada's San Emidio Desert (the "Transaction"). These lithium exploration claims, referred to as the "Galt Claim Group", adjoin the Company's existing San Emidio Desert lithium claims. The Transaction is subject to TSX Venture Exchange ("Exchange") approval. Terms of the Transaction:
The proposed consideration for the undivided 80% interest in the Galt Claim Group is as follows:
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a)US$20,000 to be paid upon Exchange approval;
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b)1,000,000 vested restricted common shares ("Shares") of Surge to be issued upon Exchange approval, which Shares shall vest and be released as follows: 25% released upon Exchange approval and 25% released each three-month period thereafter. The Shares will be issued pro-rata as to 25% to each individual Optionor;
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c)4,000,000 warrants, whereby each warrant will entitle the Optionors to purchase one additional common Share of Surge with an exercise price of CAD$0.30 per share for a period of five years from Exchange approval and vesting on the same schedule as the Shares in b); and
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d)US$10,000 each year on the anniversary of Exchange approval of the Transaction for five years.
All securities issued in connection with the Transaction are subject to a four month and a day hold period in accordance with Canadian Securities Laws.
Joint Venture:
Upon the Company having exercised the Option, Surge will have earned an undivided 80% interest in the Property, and the parties will enter into a Commercially Reasonable and Definitive Joint Venture Agreement whereby Surge's interest will be 80% and the Optionors' interest will be 20%.
If either Party's interest in the Property is diluted to 10% or less (the "Diluting Party"), then that Party's interest will be automatically convert to a 2.5% Net Smelter Returns royalty over the Properties, and the Diluting Party's interest in the Properties shall be transferred to the other Party.
Past Mineral Exploration Activity on the Galt Claim Group
Recent mineral exploration on the Galt Claim Group includes 51 playa sediment samples collected for chemical analysis at ALS Geochemistry in Vancouver, B.C. Results of aqua regia leaching of the samples show 68 - 852 ppm Lithium (mean 365 ppm), 5.3 - 201 ppm Cesium (mean 72 ppm), and 35 - 377 ppm Rubidium (mean 180 ppm). Results from two 7-foot-deep auger holes show Lithium, Cesium, and Rubidium concentrations in the range of 143.5 - 773 ppm Li, 56.8 - 102.5 ppm Cs, and 155 - 272 Rb.
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The San Emidio Desert Region and Summary of Prior Work Completed
Mr. Alan Morris, CPG states "The geologic setting combined with the presence of lithium in both active geothermal fluids and surface salts within the San Emidio Property match characteristics of lithium brine and clay deposits at Clayton Valley, Nevada and in South America. There has been considerable geological, geophysical, and geochemical work done on the eastern margin of the playa here for geothermal energy, however only preliminary work has been done further to the west on the playa proper to fully evaluate the lithium-in-brine, and/or lithium clay potential of the area."
Prior to 2011, initial exploration included preliminary geological, geochemical, studies on the area. This work was successful in identifying both lithium and lithium associated pathfinder elements in brine and sediment samples. These early campaigns illustrated that lithium mineralization is present in sediments locally often in concentrations of up to several hundred parts per million (ppm), which is in line with that seen in the vicinity of Albemarle's currently producing Clayton Valley lithium brine mine, and Lithium Corporation's Fish Lake Valley lithium-in-brine prospect. Although only limited near surface brine sampling was done at this time, several anomalous lithium samples were recovered. The strongest mineralized sample being in the order of 80 milligrams per litre (mg/L) lithium. These anomalous samples appeared to be aligned in a NW/SE orientation possibly indicating that there may be some structural (fault) control. All were proximal to the loosely defined paleobasinal basement low, as is the case in Clayton Valley.
In order to map the basement in greater detail a moderate resolution gravity geophysical survey was then undertaken to better define and understand subsurface geological conditions.
The gravity survey was successful in outlining the basinal low and shed some light on the location, and orientation of some of the bounding faults that have given rise to the subsurface basinal feature.
Qualified Person: The technical contents of this news release has been reviewed and approved by Alan Morris CPG, Elko, Nevada
About Surge Battery Metals Inc. surgebatterymetals.com
The Company is a Canadian-based mineral exploration company active in the exploration for nickel-iron alloy and Copper in British Columbia and lithium in Nevada whose primary listing is on the TSX Venture Exchange. The Company's maintains a focus on exploration for high value battery metals required for the electric vehicle (EV) market.
Nevada Lithium Claims
The Company owns a 100% interest in 95 mineral claims located in Elko County, Nevada. The Nevada North Lithium Project is located in the Granite Range southeast of Jackpot, Nevada. The target is a Thacker Pass or Clayton Valley type lithium clay deposit in volcanic tuff and tuffaceous sediments of the Jarbidge Rhyolite package. The project area was first identified in public domain stream sediment geochemical data with follow up sediment sampling and geologic reconnaissance.
The Company has entered into a Property Option Agreement to earn an undivided 80% interest in the San Emidio Desert Lithium Project, subject to a 2% NSR, located 60 miles Northeast of Reno, Nevada from Lithium Corporation (OTCQB: LTUM). The San Emidio Desert Lithium Project consists of 60 mineral claims comprising a total of 4,800 acres and is located in the San Emidio Desert.
The Company owns a 100% interest in 663 ha (1,640 acre) property in the Teels Marsh Playa Mineral County, Nevada. The property is located in an active region for both lithium exploration and production.
Nickel Projects, Northern BC
The Company has entered into a Property Option Agreement to earn an undivided 80% interest in certain mineral claims from Nickel Rock Resources Inc.
The Surge Nickel Project consists of two non-contiguous mineral claims groups consisting of 6 mineral claims in the Mount Sidney Williams area (HN4) covering 1863 hectares immediately south of and adjacent to the Decar Project and the Mitchell Range area (N100) covering 8659 hectares, located in Northern British Columbia. Three of the claims are subject to 2% NSR, including the (HN4 claim and the two southernmost claims of the N100 claims).
The exploration stage project is in the Trembleur Lake area of central British Columbia, partially adjacent to FPX Nickel Corp.'s Decar Nickel Project, which is an advanced project targeting awaruite, a nickel-iron alloy mineral, hosted by serpentinized ultramafic intrusive rocks of the Trembleur Ultramafic Unit.
Caledonia Project, Vancouver Island, BC
The Company has entered into a Property Option Agreement to acquire a 100% interest in 7 mineral claims including the Caledonia, Cascade and Bluebell claims, subject to a NSR between 1-2%. Located in the Nanaimo Mining Division on northern Vancouver Island. The claims are 7 km north-west of BHP's past producing Island Copper mine. During its prime operating period the Island Copper mine was Canada's third-largest copper producer. The Caledonia Project claims area lies within a 50-kilometer-long copper belt northwest of the Island Copper mine.
On Behalf of the Board of Directors
"Greg Reimer"
Greg Reimer, President & CEO
604-428-5690
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward?looking statements which include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical facts, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mineral property titles, availability of funds, and others are forward?looking. Forward?looking statements are not guaranteeing future performance and actual results may vary materially from those statements. General business conditions are factors that could cause actual results to vary materially from forward?looking statements.
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