AEMA, coalition launch legal challenge to BLM Conservation and Landscape Health Rule
The American Exploration & Mining Association was joined by a coalition in filing a challenge last Friday in the Wyoming district court.
Surge Copper (TSXV: SURG) has entered into a definitive purchase agreement with Thompson Creek Metals Company (TCM), a wholly owned subsidiary Centerra Gold (TSX: CG), for the acquisition of a 100% interest in the Berg property located in British Columbia.
As consideration, Surge will issue approximately 21.22 million common shares (valued at $0.08 each at the time of announcement), resulting in TCM owning approximately 15% of the company’s outstanding share capital.
The purchase agreement replaces the December 2020 option agreement that allowed Surge to earn a 70% interest in the Berg project by spending C$8 million over five years and issuing C$5 million worth of common shares to TCM.
“We are very pleased to be consolidating a 100% interest in the Berg property, which firmly establishes our ownership position in the broader Berg-Huckleberry-Ootsa district, results in a more simplified ownership structure for all parties, and provides Surge with significantly more flexibility in future financing choices to advance its assets,” Surge CEO Leif Nilsson stated in a news release.
The Berg property comprises nearly 350 sq. km. of land and is adjacent to Surge’s remaining mineral claims in BC. Hosted within the property is the Berg porphyry deposit, for which Surge has published an NI 43-101-compliant preliminary economic assessment (PEA) and an accompanying mineral resource estimate.
The PEA outlined a large-scale, stand-alone greenfield development project with a simple design and high outputs of critical minerals, producing approximately 5.8 billion lb. of copper equivalent (including 3.7 billion lb. of copper) over a 30-year mine life.
Using long-term commodity price assumptions of $4.00/lb. copper, $15.00/lb. molybdenum, $23/oz. silver and $1,800/oz. gold, the after-tax net present value (at an 8% discount) is estimated at C$2.1 billion with an internal rate of return of 20%.
The PEA calculations are based on an updated measured and indicated resource of 1.0 billion tonnes grading 0.23% copper, 0.03% molybdenum, 4.6 g/t silver, and 0.02 g/t gold, containing 5.1 billion lb. of copper, 633 million lb. of molybdenum, 150 million oz. of silver, and 744,000 oz. of gold.
In addition to the Berg property, Surge also holds 100% of the advanced-stage Ootsa project containing the East Seel, West Seel and Ox porphyry deposits located adjacent to the open pit Huckleberry copper mine, which is owned by Imperial Metals.
