SAGA Metals Corp. (the “Company” or “SAGA”)
(TSXV: SAGA) (OTCQB: SAGMF) (FSE: 20H), a North
American exploration company focused on critical mineral discovery
in Canada, is pleased to announce it has closed its previously
announced non-brokered private placement (the “
Private
Placement”) of standard flow-through units (the
“
Standard FT Units”) and Québec flow-through units
of the Company (the “
QFT Units” and, together with
the Standard FT Units, the “
FT Units”). The
Company issued 975,610 Standard flow-through units at a price of
$0.41 per Standard FT Unit for gross proceeds of $400,000.10 and
697,675 QFT Units at a price of $0.43 per QFT Unit for gross
proceeds of $300,000.25, for aggregate gross proceeds of
$700,000.35.
Financing Overview:
Each FT Unit consist of one flow-through common
share (a “FT Share”) as defined in subsection
66(15) of the Income Tax Act (Canada) (the “Tax
Act”), and one-half of one transferable common share
purchase warrant (each whole such warrant, a
“Warrant”). Each Warrant will entitle its holder
to purchase one common share in the capital of the Company (a
“Warrant Share”) at a price of $0.50 until
December 23, 2026. The Warrants and the Warrant Shares underlying
the Warrants will not qualify as “flow-through shares” under the
Tax Act.
In connection with the closing of the Private
Placement, the Company paid cash finder’s fee in the amount of
$49,000 and issued 117,129 non-transferable compensation warrants,
with each compensation warrant exercisable to acquire one common
share in the capital of the Company at a price of $0.41 until
December 23, 2026.
All securities issued in connection with the
Private Placement are subject to a hold period of four months and
one day pursuant to applicable securities laws. The FT Shares,
Warrants, Warrant Shares, compensation warrants and any shares
issued on exercise thereof are subject to a hold period and may not
be traded until April 24, 2025 except as permitted by
applicable securities legislation and the rules and policies of the
TSX Venture Exchange.
The gross proceeds from the FT Shares, sold as
part of the sale of the FT Units, will be used by the Company for
“Canadian exploration expenses” that are “flow-through critical
mineral mining expenditures” (as such terms are defined in the Tax
Act) on the Company’s flagship asset, the Double Mer Uranium
project on the east coast of Labrador, Canada, and exploration on
its other primary asset, the Amirault Lithium Property located in
Québec’s Eeyou Istchee James Bay region.
The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the “U.S. Securities Act”), or any state
securities laws, and may not be offered or sold, within the United
States, unless exemptions from the registration requirements of the
U.S. Securities Act and applicable state securities laws are
available.
No securities regulatory authority has reviewed
or approved of the contents of this news release. This news release
does not constitute an offer to sell or a solicitation of an offer
to buy any securities of SAGA in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
Receipt of Drill Permits for Double Mer
Uranium and Radar Ti-V Projects:
In addition, the Company reports receipt of
drill permits from the Newfoundland & Labrador government to
commence drilling at the Double Mer Uranium Project and Radar
Titanium-Vanadium (Ti-V) project. The Standard FT Unit component of
the financing enables to Company to approach Q1 2025 with two
strategic drill programs setting the stage for results from two
projects within SAGA’s portfolio.
Key Highlights:
- Maiden
Drill Program: Drilling is scheduled to commence in
Q1 2025 with a minimum 1,500m
program at both projects.
- Double
Mer Uranium Drilling Location: This drill program will
systematically grid and evaluate the anomalies of the Luivik zone,
providing comprehensive data on its uranium potential.
- Double
Mer’s Luivik Zone Potential: The westernmost area of the
18km radiometric trend showcases potential for
secondary fluid enrichment that can be conducive to uranium
mineralization with 300m width and potentially a 1km strike
containing samples up to 0.3692% U3O8.
- Radar
Ti-V Drilling Location: The Hawkeye zone is the most
advanced zone with both surface samples and detailed geophysics
creating clear drill targets.
- Radar’s
Hawkeye Zone Potential: Assays have returned consistent
values between 2.5 - 11.1% TiO2 and 0.2 - 0.66%
V2O5, confirming the presence of high-grade titanium and
vanadium across a potential 1km wide and 4km long trend further
confirmed with geophysics.
Double Mer Uranium Project:
The Double Mer Uranium Project
is SAGA Metals' flagship project, covering 1,024 claims across
25,600 hectares in eastern-central Labrador, approximately 90 km
northeast of Happy Valley-Goose Bay. Leveraging significant
historical exploration data, SAGA’s exploration team validated key
data and built upon the Company’s understanding of the project’s
potential. This work has refined the understanding of the targets
within the zone, specifically supporting the decision to initiate a
1500-2500m drill program the Luivik zone.
SAGA sees the Double Mer Uranium Project as a
promising addition to the significant uranium projects already
established in Labrador’s Central Mineral Belt
(CMB), including Paladin Energy’s Michelin and Atha
Energy’s CMB discovery. With encouraging surface samples and
geophysical data, SAGA believes Double Mer could offer comparable
large-tonnage potential.
Figure 1: Regional map of the Double Mer Uranium
Project in Labrador, Canada
The Luivik zone has been
prioritized for drilling due to its anomalous uranium (U3O8%)
geochemistry, along with clear signs of alteration and fluid
enrichment. This zone exhibits Iron phase IOCG (Iron Oxide Copper
Gold) fluid characteristics, such as high concentrations of smoky
quartz and iron carbonate staining, which are indicators of late
fluid flow. These characteristics will be carefully monitored as it
can have the potential to enrich uraniferous units and mark the
highest-grade intercepts. Consistent CPS (counts per second)
readings further highlight the Luivik zone's uranium potential,
making it a top target for exploration.
The Luivik zone boasts a width of 300 meters
between samples with a cut-off of 150 ppm U3O8 and anomalous grades
over 1,100 ppm U308 to a high of 3,692 ppm U3O8 in a single sample.
The Uranium count radiometrics suggest that the anomalous
pegmatites which predominantly hosts the Luivik zone may extend
upwards of one km or greater.
The zone’s favorable mineralogy is complemented
by logistical advantages. Located just one kilometer from Double
Mer’s main camp, the Luivik zone offers easy access for drilling
teams, with snowmobile trails in place to support active drilling
operations, ensuring both practical and cost-effective program
execution.
Figure 2: The Luivik zone in the west of the
Double Mer Uranium Property. Mapped pegmatites with amphibolite
mafic rocks which sit in place with much of the mineralized
trends.
Michael Garagan, CGO & Director of
SAGA Metals Corp. commented: “Drilling the Luivik zone
which contains some of the most encouraging results, combined with
less logistical challenges is the best starting spot for SAGA. We
will be immediately looking to build off this winter program by
getting permits ready to continue to test zones further east such
as the Nanuk and Katjuk zones in Q2 and Q3 of 2025. We are aiming
to confirm uranium concentrations and take initial steps in
delineating this zone’s potential as a critical step in positioning
Double Mer as a quality project in Labrador’s large-tonnage uranium
landscape.”
Radar Ti-V Project:
The Radar Ti-V Property is located 10km south of
Cartwright in Labrador, Canada. The project spans 17,250 hectares
and benefits from road access, supporting efficient exploration and
development.
Figure 3: Map of the Radar Ti-V project and its
proximity to the town of Cartwright, Labrador
The Hawkeye zone is the most prospective target
on the property. Detailed geophysics and surface samples are
suggestive of a complex and phased layered mafic intrusion that may
be upwards of 1km wide and 4 km long. Recent geophysics completed
on the property show very detailed correlation to the rock samples
and observed phase changes in the system.
Increased immiscibility in the east creates
pronounced silica rich (magnetite depleted) banding mixed
interstitially with high grade massive magnetite layers above
(5-11.1 % TiO2 & 0.3-0.66 % V205%). This first
phase can be identified by the contact of low magnetics bands
(blue) and highly magnetic bands (red, pink) (see Figure 4 below).
After the high-grade banding the rocks transition into a gabbro
norite rock moving westwards which contains a disseminated
magnetite groundmass. These rocks are lower grade averaging (3-5%
TiO2) & (0.1-0.2% V2O5) but are consistent and extensive in
width. The entirety of these cross-system phases is almost 1km wide
with a near vertical dip of each layer.
SAGA aims to complete a 1,500m drill program at
the Hawkeye zone over the area encompassing the anomalous TiO2 and
V2O5 surface samples and targeted geophysics segment as shown in
Figure 4 below.
Figure 4: Geophysics completed over a targeted
area within the Hawkeye Zone increasing width to 1km and a
projected 4km strike
Michael Garagan, CGO & Director of
SAGA Metals Corp. further commented: “The decision to run
back-to-back drill programs and include the Radar project is
strategic and efficient as we are always looking to maximize our
cost-effectiveness and shareholder value. We’ve engaged Gladiator
Drilling out of south-eastern Labrador. Both the drilling and
geological teams will be able to drive right into the Hawkeye zone
for a 3-week program prior to the Double Mer Uranium drill program.
SAGA will be able to enter Q2 with drill results from two projects,
setting the stage for a very active 2025 field season.”
About SAGA Metals Corp.
SAGA Metals Corp. is a North American mining
company focused on the exploration and discovery of critical
minerals that support the global transition to green energy. The
company's flagship asset, the Double Mer Uranium Project, is
located in Labrador, Canada, covering 25,600 hectares. This project
features uranium radiometrics that highlight an 18-kilometer
east-west trend, with a confirmed 14-kilometer section producing
samples as high as 4,281ppm U3O8 and spectrometer readings of
22,000cps.
In addition to its uranium focus, SAGA owns the
Legacy Lithium Property in Quebec's Eeyou Istchee James Bay region.
This project, developed in partnership with Rio Tinto, has been
expanded through the acquisition of the Amirault Lithium Project.
Together, these properties cover 65,849 hectares and share
significant geological continuity with other major players in the
area, including Rio Tinto, Winsome Resources, Azimut Exploration,
and Loyal Lithium.
SAGA also holds secondary exploration assets in
Labrador, where the company is focused on the discovery of
titanium, vanadium, and iron ore. With a portfolio that spans key
minerals crucial to the green energy transition, SAGA is
strategically positioned to play an essential role in the clean
energy future.
For more information, contact:SAGA Metals Corp.Investor
RelationsTel: +1 (778) 930-1321Email:
info@sagametals.comwww.sagametals.com
Qualified Person
Peter Webster P.Geo. CEO of Mercator Geological
Services Limited is an Independent Qualified Person as defined
under National Instrument 43-101 and has reviewed and approved the
technical information related to the Double Mer Uranium Project and
Radar Ti-V Project disclosed in this news release.
The TSX Venture Exchange has not reviewed and
does not accept responsibility for the accuracy or adequacy of this
release. Neither the TSX Venture Exchange nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Disclaimer
This news release contains forward-looking
statements within the meaning of applicable securities laws that
are not historical facts. Forward-looking statements are often
identified by terms such as “will”, “may”, “should”, “anticipates”,
“expects”, “believes”, and similar expressions or the negative of
these words or other comparable terminology. All statements other
than statements of historical fact, included in this release are
forward-looking statements that involve risks and uncertainties. In
particular, this news release contains forward-looking information
pertaining to the Company’s plans and objectives in respect of the
gross proceeds from the Private Placement as well as the
prospective nature of the Double Mer Uranium and Radar
Titanium-Vanadium Projects and future exploration programs. There
can be no assurance that such statements will prove to be accurate
and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could
cause actual results to differ materially from the Company’s
expectations include, but are not limited to, changes in the state
of equity and debt markets, fluctuations in commodity prices,
delays in obtaining required regulatory or governmental approvals,
environmental risks, limitations on insurance coverage, risks and
uncertainties involved in the mineral exploration and development
industry, and the risks detailed in the Company’s final prospectus
in Manitoba and amended and restated final prospectus for British
Columbia, Alberta and Ontario dated August 30, 2024, filed under
its SEDAR+ profile at www.sedarplus.ca, and in the continuous
disclosure filings made by the Company with securities regulations
from time to time. The reader is cautioned that assumptions used in
the preparation of any forward-looking information may prove to be
incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, as a result of numerous
known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of the Company. The reader is
cautioned not to place undue reliance on any forward-looking
information. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made
as of the date of this news release and the Company will update or
revise publicly any of the included forward-looking statements only
as expressly required by applicable law.
Photos accompanying this announcement are available at:
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https://www.globenewswire.com/NewsRoom/AttachmentNg/c5509c3f-aee5-4a0b-9e70-2c396ea67922
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