The TSX Venture Exchange has accepted for filing documentation pertaining to a purchase agreement for mineral interest dated effective Sept. 14, 2023, and its first addendum dated effective Sept. 25, 2023, between three arm's-length vendors, Surge Battery Metals USA Inc. (the purchaser), a wholly owned subsidiary of Surge Battery Metals Inc., and the company, whereby the purchaser will acquire from the vendors a 21.25-per-cent interest in the subsurface (mineral estate) rights on certain private lands totalling approximately 880 acres located in Elko county in Nevada. The consideration is $50,000 (U.S.) in cash and the issuance of 1.25 million shares of the company to the vendors. Furthermore, the purchaser will pay an additional $150,000 (U.S.) to the vendors should it enter into an agreement to purchase surface rights of the same private lands with the owner of those surface rights.

The purchaser grants the vendors a net revenue royalty of 3 per cent of net revenues from the production of the acquired interest. However, the royalty is not payable until a surface rights agreement is entered into with the owner of the surface rights to the private lands. The purchaser has the right for five years to purchase one-half of the royalty, thereby reducing it to 1.5 per cent, by paying the vendors a total of $750,000 (U.S.).

All cash payments, share issuances and royalty payments will be distributed to the vendors on a pro rata basis.

For further details, please refer to the company's news release dated Oct. 3, 2023.