Surge Extends Property Purchase Agreement and Sells Nickel Property

Surge Battery Metals Inc. has announced an extension to its property purchase agreement with M3 Metals Corp. regarding the Texas Springs Properties, originally established on August 22, 2024. Additionally, the company has finalized the sale of its Nickel properties to FPX Nickel Corp.

Key Takeaways

• Surge Battery Metals extends the closing date for the Texas Springs Properties purchase agreement to June 30, 2025.
• The extension is due to the need for disinterested shareholder approval.
• Surge has sold its Nickel 100, 101, 103, and 104 claims to FPX Nickel Corp. for $50,000.

Overview of the Purchase Agreement

On August 22, 2024, Surge Battery Metals and M3 Metals Corp. entered into a property purchase and sale agreement. Under this agreement, M3 Metals will sell its interest in the Texas Springs Properties to Surge in exchange for 1,200,000 common shares of Surge. Both companies own 50% of the properties, which were previously governed by a mineral property option agreement effective July 26, 2023.

The Purchase Agreement included a regulatory approval clause, necessitating that the transaction be completed by October 31, 2024. However, due to the complexities involved, the parties have now amended the agreement.

Amendment Details

The amendment, dated October 27, 2024, extends the closing date to June 30, 2025. This extension is primarily to allow Surge to obtain the necessary disinterested shareholder approval before finalizing the transaction. As of now, Surge has not set a date for the shareholder meeting to seek this approval.

Related Party Transaction

The Purchase Agreement is classified as a related party transaction under TSX Venture Exchange policies. This classification arises from shared personnel between the two companies, including an officer and director who holds positions in both entities. Consequently, the transaction is subject to the requirements of MI 61-101, which includes provisions for formal valuations and minority approvals. Surge is relying on exemptions from these requirements, which allows for a more streamlined process.

Sale of Nickel Properties

In addition to the property purchase agreement, Surge has also entered into the Nickel 100 Agreement with FPX Nickel Corp. This agreement, effective October 10, 2024, involves the sale of the Nickel 100, 101, 103, and 104 claims located in Northern British Columbia. The total consideration for this sale is $50,000, payable in cash upon closing.

Conclusion

Surge Battery Metals is actively managing its property agreements and transactions to enhance its portfolio. The extension of the purchase agreement with M3 Metals and the sale of Nickel properties to FPX Nickel Corp. reflect the company's strategic approach to its operations in the mining sector. As the company moves forward, obtaining shareholder approval will be a critical step in finalizing the Texas Springs Properties acquisition.

Sources

• Surge Announces Extension to Property Purchase Agreement Announced on August 22, 2024 and Sale of Nickel Property, Yahoo Finance.