Surge Battery Metals Inc. [YSXV: NILI; OTCQX: NILIF] closed its previously announced agreement to purchase the remaining 50% interest in certain in the M3 Metals Corp. (M3M) Texas Springs claims, as that term is defined below), by issuing to M3M 1.2 million of its common shares. The company now owns a 100% interest in the M3M Texas Springs claims and will proceed with M3M to file quitclaims and other documents with Elko County, Nevada, to reflect its new ownership position.

By way of background, effective July 26, 2023, the company entered into a mineral property option and joint venture agreement with M3M, an exchange-listed company. The M3M option agreement granted the company the option to earn up to an 80-per-cent interest in and to (at that time) 253 mineral claims held by M3M, which are contiguous with the company’s Nevada North lithium project.

Prior to August, 2024, the company had earned a 50% interest in the M3M Texas Springs claims.

In August, 2024, the company entered into a mineral property option purchase and sale agreement with M3M to acquire the remaining 50% interest in the M3M claims that it did not own in consideration of issuing 1.2 million common shares of the company to M3M. The M3M purchase agreement, as amended, superseded the M3M option agreement, was subject to exchange approval, and was to terminate if closing of the M3M purchase agreement has not occurred on or before June 30, 2025. This June 30, 2025, date was extended by way of further amendment to the M3M purchase agreement to Aug. 30, 2025.

The M3M purchase agreement was considered a related party transaction under the policies of the TSX Venture Exchange by virtue of the parties having two insiders in common.

The M3M purchase agreement was also subject to Multilateral Instrument 61-101’s requirements. However, the company relied upon the exemptions in MI 61-101 from the requirements for a formal valuation, the requirements for a meeting and information circular and the requirements for minority approval.

Surge Battery Metals is at the forefront of securing the supply of domestic lithium through its engagement in the Nevada North lithium project. The project focuses on exploring clean, high-grade lithium energy metals in Nevada, a crucial element for powering the electric vehicles of tomorrow.

The company owns the Nevada North lithium project, located in the Granite Range southeast of Jackpot, Nevada, about 73 km north-northeast of Wells, Elko County, Nevada. 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.

Highly anomalous soil values and geophysical surveys suggest 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. The Nevada North lithium project has a pit-constrained inferred resource containing an estimated 8.65 million tonnes of lithium carbonate equivalent (LCE) grading 2,951 parts per million (ppm) lithium (Li) at a cut-off of 1,250 ppm.