ARM Deepens Copper Bet with C$4M Stake in Canadian Explorer Surge

TORONTO, ON – March 31, 2026 – South African diversified mining heavyweight African Rainbow Minerals Limited (ARM) has significantly increased its bet on the future of copper, injecting C$3,980,000 into Canadian exploration company Surge Copper Corp. The move, part of a non-brokered private placement, solidifies ARM's position as a key strategic investor and underscores a calculated push into the critical metals space amid surging global demand.

ARM announced it has subscribed for 7,960,000 units of Surge at a price of C$0.50 per unit. This transaction boosts its ownership from a prior holding of 18.2% to approximately 19.9% of Surge's common shares on a non-diluted basis. Including the accompanying warrants, ARM's potential stake rises to 21.5%, a clear signal of its long-term confidence in Surge's assets.

Each unit consists of one common share and one purchase warrant, allowing ARM to acquire an additional share at C$1.00 for the next three years. This fresh capital infusion is not just a line item on a balance sheet; it represents a powerful endorsement of Surge's work and provides crucial fuel for the advancement of one of Canada's most promising copper districts.

A Strategic Play on the Future of Copper

ARM's decision to deepen its investment is a direct reflection of powerful macroeconomic trends reshaping the global commodities landscape. Copper, the cornerstone of electrification, is at the heart of the world's transition to a low-carbon economy. Its use is essential in everything from electric vehicles and charging infrastructure to wind turbines and solar panels. Market analysts project copper demand to potentially double by 2050, creating a formidable supply challenge.

This demand surge is colliding with a constrained supply pipeline. Decades of underinvestment in exploration, coupled with declining ore grades at major existing mines and a scarcity of new, large-scale discoveries, have created a looming structural deficit. For major mining companies like ARM, which has a diversified portfolio in iron ore, manganese, and platinum group metals, securing access to high-quality, long-life copper assets is no longer optional—it is a strategic imperative.

By increasing its stake in Surge Copper, ARM is positioning itself on the ground floor of a significant future supply source located in the stable and resource-friendly jurisdiction of British Columbia, Canada. This move diversifies ARM's geographic and commodity exposure, hedging against cycles in its other core markets and aligning its portfolio with the undeniable growth trajectory of green energy and electrification.

Fueling a Canadian Copper Powerhouse

The nearly C$4 million investment is a game-changer for Surge Copper, providing the capital necessary to aggressively de-risk and advance its flagship assets. The company's primary focus is the Berg Project, a massive copper-molybdenum-silver-gold deposit in west-central British Columbia.

A Preliminary Economic Assessment (PEA) released in 2023 painted a compelling picture of Berg's potential, outlining a project with a mine life exceeding 30 years and a post-tax Net Present Value (NPV) of C$2.1 billion. The project's mineral resource is vast, containing an estimated 5.1 billion pounds of copper and 633 million pounds of molybdenum in the Measured and Indicated categories alone.

ARM's investment will directly support the ongoing Pre-Feasibility Study (PFS) for Berg, a critical milestone expected in the second quarter of 2026. The PFS will refine engineering, metallurgical, and environmental data, moving the project from a promising concept to a tangible development plan. This funding enables Surge to continue vital fieldwork, including geotechnical drilling and environmental baseline studies, ensuring the project advances on a clear and responsible path. Beyond Berg, Surge also holds the 100%-owned Ootsa Property, another significant copper-gold-molybdenum-silver project adjacent to an operating mine, adding further depth to its portfolio.

The Nuance of Influence: A Near-20% Stake

The structure of ARM's investment reveals a sophisticated corporate strategy. By holding its stake at 19.9% on a non-diluted basis, ARM secures its position as a highly influential shareholder without crossing the 20% threshold that typically signifies outright "control" under Canadian securities regulations.

This is a deliberate and strategic choice. Maintaining a sub-20% stake allows ARM to exert significant influence—likely through board representation and investor rights agreements—while avoiding the more onerous regulatory, reporting, and accounting obligations that come with being a designated "control person." These can include stricter trading restrictions and potentially having to consolidate Surge's financials into its own.

Critically, the deal includes a provision that restricts the exercise of the warrants if it would cause ARM's holdings to exceed 20%. This built-in governor ensures the carefully crafted balance of power is maintained, giving ARM a powerful voice in Surge's strategic direction without triggering the complexities of a takeover. It is the art of maximizing influence while maintaining strategic flexibility, a common tactic for major investors taking a long-term position in a junior partner.

An Evolving Partnership

This latest transaction is not the beginning of a relationship but a significant deepening of an existing one. ARM was already a substantial shareholder, having previously accumulated an 18.2% stake. The press release confirms that ARM was exercising its participation right under an investor rights agreement established in May 2024, allowing it to maintain its pro-rata ownership level in new financings.

This history demonstrates a consistent and growing confidence from ARM in Surge's management and assets. Rather than a one-time speculative purchase, the investment pattern points to a long-term, strategic partnership. As Surge uses this capital to advance the Berg Project through its Pre-Feasibility Study, it does so with the firm backing of a global mining leader, creating a powerful synergy that could unlock one of the next great copper mines.