Vancouver, BC / TheNewswire / January 11, 2019 - Surge Exploration Inc. (the "Company" or "Surge") (TSXV: SUR, OTCQB:SURJF, FRA: DJ5C) announces that it has been made aware and requested by the OTC Markets Group to comment on promotional activity concerning SURJF's common shares. The Company is aware that this promotional activity coincided with higher than average trading volume in the Company's shares. The Company became aware of the promotional campaign on November 7, 2018 when it entered into a contract with Stellar Media Group.
The Company entered into a consulting contract with Stellar Media Group on November 7, 2018, for a term of three months to provide editorial and marketing services for the Company for a fee of up to US$150,000. With respect to the marketing campaign on January 9, 2019, Stellar provided written content regarding the Company based on previously filed and disclosed press releases and corporate information that was provided to Stellar Media. This information had previously been made available to the public in the Company's regulatory filings and is also posted on the Company's website. The Company requested that Stellar provide a draft of the proposed advertisement prior to releasing it and once the content was reviewed and signed off by Management of the Company, it was then distributed to Stellar Media's distribution lists, which email lists consist of a double opt-in subscriber mechanism.
On January 9, 2019, the same day as the editorial campaign, the Company also announced a reorganization of its assets whereby the Company would spin off its interests in the British Columbia Copper/Gold project into a newly incorporated subsidiary CuGold Corp. The news release also mentioned that the Company proposes to separately finance this new subsidiary and seek a public listing on a stock exchange. This would have attributed to the higher than average trading volume of the Company's shares on January 9, 2019 as this provides a dividend to the Company's shareholders.
The Company's recent press releases have reported on and provided disclosure of legitimate and ongoing corporate activities only and are not part of any promotional activities or campaigns. Our operations are in the exploration stage. As an exploration stage enterprise, our focus must remain on developing our property interests to establish a commercially viable resource. This is where our attention and funds will remain. The Company encourages those interested in the Company to rely solely on information included in its press releases combined with its SEDAR filings, and disclosures made with OTC Markets Group. In addition, we strongly urge any prospective investors to obtain advice from a qualified investment professional prior to making any investment in our Company.
The Company has entered into an editorial write-up and marketing campaign contract with Aktien Check to provide editorial write-ups and translation of Company news releases with respect to the Company's Frankfurt Listing which services are necessary when communicating within the German market.
Pursuant to private placements and shares for debt transactions completed through the facilities of the TSX Venture Exchange, the Company has issued the following shares and warrants. The shares were issued at discount to market pursuant to private placement pricing policies of the TSX Venture Exchange and all securities issued were restricted and subject to statutory hold periods. The warrant exercise prices were at market price at the time of grant and as such were not discounted:
December 22, 2017 - 21,875,000 pre-consolidated shares at $0.08 per 21,875,000 pre-consolidated warrants exercisable at $0.08 for two years.
February 14, 2018 - 2,189,588 pre-consolidated shares at $0.08 and 1,206,957 pre-consolidated warrants exercises able at $0.08 for two years.
July 22, 2018 - 5,500,000 shares at $0.10. per share and 5,500,000 warrants exercisable at $0.15 for two years.
The statements made in the Stellar Media campaign were in fact accurate statements based on the Company's previously filed and disclosed information.
The Company is a Canadian-based mineral exploration company which has been active in the resource sector in British Columbia and elsewhere in Canada. The Company has an exploration office in Santiago, Chile to review mineral exploration opportunities in Chile and elsewhere in South America.
Atacama Cobalto Project (Cobalt):
The Atacama Cobalto Project is located in the Atacama Province in northern Chile, 15 km northwest of the town of Copiapo, where mining is the largest economic activity, and the mining industry is one of the region's major employers. The Atacama Cobalto Project consists of 1,059 hectares and is located only 3 km East of the Cerro Iman Mine. To date, CAP Mineria has drilled over 20,250 m on the Atacama Coblato Project.
The area of interest hosts several other mining companies and is situated near the mylonitic corridor that is part of the Atacama Fault System that hosts many of the IOCG deposits in northern Chile. The Atacama Cobalto Project corresponds to a "cobalt anomalous IOCG" associated with the geographic area.
The Atacama Cobalto Project benefits from access to excellent infrastructure, including port access, energy supply, and access through the Pan American Highway.
Ontario Cobalt Properties (Cobalt):
The Company has an option to earn an undivided 60% interest in the Glencore Bucke Property and the Teledyne Property, located in Cobalt, Ontario Canada.
Incahuasi Lithium Project (Lithium Brine):
The property is located on the northernmost section of the Incahuasi salar, 75 km southeast from both the town of Tilomonte, Chile and the Salar de Atacama, where mining is the largest economic activity, and the mining industry is one of the region's major employers. The Incahuasi salar is located on the national border between Chile and Argentina at an elevation of 3,260 m. The Incahuasi Lithium Project consists of 10 mineral exploration concessions totalling 2,300 hectares. Bordering this property, in Argentina, is a 9,843 hectare lithium exploration property held by Advantage Lithium (TSXV: AAL OTCQB: AVLIF). The option on this project is subject to TSX-V approval.
Mineral Mountain Property (Copper, Gold) British Columbia
As announced on November 28, 2018, Surge has acquired a 100% interest in 9 claim blocks comprising 19,665 hectares (197 sq km) in the Omineca region of north-central British Columbia, approximately 150 km north of Fort St. James. The claims are not subject to any royalty terms, back-in rights, payments or any other agreements and encumbrances. The region is host to numerous operating mines, good infrastructure including experienced exploration and supporting services.
B.C. Minfile assessment report data indicates that most of the area covered by the Omineca Group claim blocks were at one time or another covered by staking during surges of exploration in B.C. dating from the 1940's to present day. Prominent among early discoveries in the Omineca region were the nearby Lustdust/Stardust property (Sun Metals Corp. TSX-V: SUNM) covering a large, coherent integrated porphyry-skarn, epithermal system; the Kwanika property (Serengeti Resources Inc./POSCO Daewoo TSX-V: SIR) a promising advanced stage copper-gold project; the Lorraine property (Lorraine Copper Corp. TSX-V: LLC) host to a large copper/gold NI 43-101 compliant resource. The tenures are located between the Kemess North project being developed by Centerra Gold's subsidiary Aurico Metals and Centerra Gold's operation Mt Milligan mine.
Hedge Hog Property, (Copper, Gold) British Columbia
The Company has an option to earn an undivided 60% interest seven mineral tenure covering 2,418 hectares (5,972 acres) located approximately 80 km northeast of the town of Quesnel, BC and 20 km north of the historic gold mining towns of Wells and Barkerville.
On Behalf of the Board of Directors
President & CEO
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 guarantees of 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.