African Rainbow Minerals Increases Stake in Surge Copper

African Rainbow Minerals (JSE: ARI) has augmented its stake in Canadian junior Surge Copper (TSXV: SURG) by an additional 6.46%. This was achieved through the acquisition of approximately 25.78 million shares.

The share purchases were executed at C$0.175 per share. This price is above Surge Copper’s current market price of C$0.14 per share. The total proceeds for this transaction amounted to around C$4.51 million.

ARM, a company mainly operating gold, platinum, and coal mines in South Africa, first made an investment in Surge Copper in April 2024. At that time, it purchased about 39.61 million shares at C$0.095 each. Subsequently, in June, after exercising its investor rights to prevent dilution, it bought another 1.58 million shares at C$0.15.

With the latest acquisition, ARM now holds approximately 68.74 million of Surge Copper’s shares, which represents 19.9% of the outstanding shares. In a statement, the African miner clarified that it acquired these shares for investment purposes. As of Friday’s market close, Surge Copper had a market capitalization of C$44.9 million.

Surge Copper’s Large Copper – Molybdenum Project

Surge Copper’s primary asset is the 100%-owned Berg project in central British Columbia. The company is developing this as a standalone open – pit mine. The underlying porphyry deposit is substantial, boasting over 1 billion tonnes in measured and indicated resources. This contains 5.1 billion lb. of copper and 633 million tonnes of molybdenum.

A preliminary economic assessment in 2023 detailed a 30 – year mine life. Total production was projected to be 3.8 billion lb. of copper and 402 million lb. of molybdenum. If realized, Berg would become one of Canada’s top copper producers and by far its largest molybdenum producer.

Based on the production profile, the study calculated a post – tax net present value of C$2.1 billion and an internal rate of return of 20% for the project. The initial capital is estimated at C$1.97 billion, which is expected to be recouped within four years. Currently, the company is in the process of finalizing a resource update and progressing the project towards the pre – feasibility stage.