African Rainbow Minerals Increases Stake in Surge Copper to 19.9%, Signaling Continued Investment in Canadian Copper Project August 18, 2025 | Posted by: Matthew Evanoff

African Rainbow Minerals Increases Stake in Surge Copper to 19.9%

African Rainbow Minerals (ARM), a South African-based mining company, has significantly expanded its position in Canadian junior miner Surge Copper Corp., according to regulatory filings and company statements released this week.

The transaction involved ARM’s purchase of approximately 25.78 million shares of Surge Copper at C$0.175 per share, representing an investment of roughly C$4.51 million. This latest acquisition raises ARM’s total ownership in the Canadian company to 19.9%, equivalent to approximately 68.74 million outstanding shares.

Notably, ARM executed this purchase at a premium to Surge Copper’s current market value. As of Friday’s market close, Surge shares were trading at C$0.14, giving the company a market capitalization of C$44.9 million. ARM indicated the purchase was made for investment purposes but provided no further details regarding potential plans to increase its position beyond the current level.

This development marks a significant escalation in ARM’s involvement with Surge Copper, which began in April 2024 when the South African miner first entered with the purchase of approximately 39.61 million shares at C$0.095 per share. ARM further increased its holdings in June 2024 by acquiring an additional 1.58 million shares at C$0.15, exercising investor rights designed to prevent dilution of its initial investment.

With these transactions now complete, ARM has established itself as a major strategic shareholder in Surge Copper, approaching the 20% threshold that typically triggers additional regulatory disclosure requirements in many jurisdictions.

ARM’s growing interest centers on Surge Copper’s flagship Berg copper-molybdenum project in central British Columbia. The Berg deposit represents a large-scale porphyry system wholly owned by Surge and is being developed as a potential standalone open-pit mining operation.

According to a preliminary economic assessment (PEA) published in 2023, the Berg project contains over 1 billion tonnes of measured and indicated mineral resources. These resources host an estimated 5.1 billion pounds of copper and 633 million pounds of molybdenum, positioning Berg as a potentially significant contributor to North American copper supply.

The PEA outlines a projected 30-year mine life, during which the project could produce approximately 3.8 billion pounds of copper and 402 million pounds of molybdenum. These production figures would potentially rank Berg among Canada’s top copper producers and establish it as the country’s largest molybdenum producer.

From an economic perspective, the PEA assigns the project a post-tax net present value of C$2.1 billion and an internal rate of return of 20%. The initial capital cost is estimated at C$1.97 billion, with a projected payback period of four years – metrics that suggest robust economic potential despite the substantial upfront investment required.

Currently, Surge Copper is advancing the Berg project through technical de-risking initiatives, including a resource update and additional studies aimed at moving the project toward the pre-feasibility stage.

Industry analysts view ARM’s investment as reflecting broader trends in the mining sector, particularly among diversified miners seeking increased exposure to copper. Global demand for the metal continues to grow, driven by electrification, renewable energy deployment, and infrastructure development across major economies.

While ARM has historically concentrated on South African gold, coal, and platinum group metals operations, its growing stake in a Canadian copper-molybdenum developer signals a strategic diversification in both commodity focus and geographical reach. The company has not disclosed whether it intends to seek a more active role in Surge Copper’s project development or management.

Surge Copper has not issued a formal statement regarding ARM’s latest share acquisition, and no changes to the company’s board or management have been announced in relation to the investment.

With significant portions of the resource already defined and preliminary economics established, Surge Copper is expected to release a resource update in the coming months. The company’s next major milestone will be completing a pre-feasibility study, which will provide more detailed analysis of the Berg project’s technical and economic viability.

Environmental assessments, permitting processes, infrastructure planning, and project financing arrangements remain ahead in the development timeline. As ARM continues to build its position, market observers will be watching closely to see how this strategic investment might influence the project’s development pace or attract additional capital partners to advance the Berg project toward production.