Surge Battery Metals Inc. [NILI-TSXV, NILIF-OTC, DJ5C-FRA] said Wednesday it has raised $25 million from a non-brokered private placement financing.

The company said it intends to use the proceeds for additional costs related to its preliminary feasibility study (PFS) at the Nevada North Lithium Project, costs for a definitive feasibility study, and general working capital.

Under the private placement, the company raised $19.9 million (the LIFE offering) by issuing 22.2 million units priced at 90 cents each. It raised an additional $5.0 million by issuing 5.5 million offered units priced at 90 cents pursuant to prospectus exemptions available under applicable securities laws.

Each offered unit consists of one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one common share at an exercise price of $1.35 at any time following 60 days after the date of issuance until February 3, 2029.

“We are pleased to have completed this fully subscribed financing, which provides Surge with a strong balance sheet to advance key technical and feasibility work at Nevada North,’’ said Surge Chairman Graham Harris.

On Wednesday, the shares rose 3.4% or $0.025 to 75.5 cents. The shares trade in a 52-week range of $1.04 and 22.5 cents.

Surge Battery’s key asset is a 100% interest in the Nevada North lithium project. It consists of 303 mineral claims, located in the Granite Range southeast of Jackpot, about 73 kilometres north-northeast of Wells, Elko County, Nevada.

The company said the first three rounds of drilling on the project, completed in 2022, 2023, and 2024, identified a strongly mineralized zone of lithium-bearing clays occupying a strike length of more than 4,300 metres and a known width of greater than 1,500 metres.  The company has said highly anomalous soil values and geophysical surveys suggest that there is potential for the clay horizons to be much greater in extent, while wide drill spacing allows for significant upside to occur during infill drilling.

Back in September, 2024, Surge Battery announced a major resource update for the Nevada North Project delivering a 113% increase in lithium carbonate equivalent (LCE) tonnage in comparison to a previous estimate. It said the updated inferred resource confirms the project as the highest-grade lithium claystone resource in the United States, hosing 11.24 million tonnes of LCE at 3,010 lithium (li) using a 1,250 ppm LI cutoff.

The Nevada North Lithium Project has a pit constrained resource containing an estimated 8.65 million tonnes of Lithium Carbonate Equivalent (LCE) grading 2,951 ppm Li at a 1,250 ppm cutoff. The project hosts a higher-grade core of 7.43 million tonnes of LCE at 3,843 ppm Li at a 3,000 ppm cutoff.

A preliminary economic assessment envisages average annual production of 86,300 tonnnes of LCE and peak production of 109,100 tonnes LCE in year six.