Saga Metals Corp. (the “Company” or “Saga”), a
North American exploration company focused on critical mineral
discovery in Canada, is pleased to announce that it has entered
into an asset purchase agreement (the “APA”) with two arm’s length
private vendors (the “Vendors”), pursuant to which the Company will
acquire a 100% interest in 606 mining claims covering an area of
31,347.76 hectares in the Eeyou Istchee James Bay region of Québec
(the “Amirault Property”).
The Amirault Lithium Property is contiguous to
Saga’s Legacy Lithium project expanding the total contiguous land
holdings to 1,274 claims spanning 65,849.20 hectares (658 square
kilometers). The acquisition increases the Company’s foothold on
the striking paragneiss, all of which can be considered prospective
for pegmatites following the discovery trend of Winsome Resources,
Azimut Exploration, Rio Tinto, and Loyal Lithium (See Figure
1).
To-date, Saga has confirmed over 100+ identified
pegmatites with a combined 7km strike of lithium, cesium &
tantalum (LCT) bearing pegmatites at the Legacy Lithium Project
with over 90% of the project still to be explored.
The Legacy Lithium Project has continued
validation by major companies announcing results from their winter
drill programs including:
- Winsome Resources’ Adina Lithium
project announced an increase to its resource now estimated to be
78Mt at 1.15% Li2O. Read More.
- Loyal Lithium’s Trieste project
continues to take shape with thick high-grade intercepts with 32.8m
of 1.2% Li2O including 8.3m at 2.4% Li2O at Dyke # 04. Read
More.
- Azimut Exploration and Soquem
drilled an additional 3,203m at their Galinee project in their
second phase of the campaign. Results include 2.68% Li2O over 54.6m
and 3.48% Li2O over 35.85m. Read More.
- Midland Exploration in partnership
with Rio Tinto confirms high-grade lithium up to 7.2% Li20 and
identifies additional spodumene-bearing pegmatites on Galinee
project. Read More.
Figure 1: A map of the “Lithium Neighborhood” at
the Legacy Lithium Project in Quebec
“This is an exciting acquisition for Saga Metals
Corp. Increasing our claim package over the prospective paragneiss
in this up-and-coming eastern district of James Bay’s La Grande
sub-province gives the Company lots of options in the future,”
stated Michael Garagan, Chief Geological Office of Saga Metals
Corp. “With early indications from lake sediments over the area we
look forward to uncovering what this property holds.”
Acquisition Terms
Pursuant to the APA, the Company agreed to
acquire 100% in the Amirault Property from the Vendors in
consideration for payment of $200,000 (the “Cash Payment”) and
issuance of 4,000,000 common shares in the capital of the Company
(the “Consideration Shares”).
The Cash Payment is payable in $10,000 monthly
instalments until no later than five days following the closing of
the Company’s initial public offering and all documents pursuant to
the APA having been delivered, or such other date as the parties
may agree (the “Closing Date”), at which point the balance of the
Cash Payment is payable on the Closing Date, which will be equal to
$200,000 less the total aggregate monthly instalments.
The Consideration Shares are subject to
contractual restrictions on resale (the “Lock-Up Restrictions”), as
well as a statutory hold period of four months and one day from the
later of (i) the date of issuance, and (ii) the date that Saga
becomes a reporting issuer in any province or territory of Canada.
In accordance with the Lock-Up Restrictions, the Vendors may not
sell, pledge, encumber, assign or otherwise dispose of or transfer
the Consideration Shares until they are released in accordance with
the release schedule, pursuant to which 10% of the Consideration
Shares will be released on the Closing Date and 15% of the
Consideration Shares will be released every six months thereafter
for a total period of 36 months.
“This is another great milestone completed as we
continue to build towards our IPO”, stated Mike Stier, CEO &
Director of Saga Metals Corp. “We are working through the
regulatory process and anticipate filing our final prospectus in
the coming days.”
In accordance with the APA, the Company will
grant the Vendors a 2.0% (1.0% per Vendor) gross overriding royalty
on the Amirault Property. The closing of the acquisition is subject
to customary conditions and approvals. No finder’s fees or
commissions were paid in connection with the acquisition.
To learn more about Saga’s projects visit the projects page here
and corporate video here or see below.
To access Saga’s corporate presentation select
here.
A Media Snippet accompanying this announcement is
available by clicking on this link.
About Saga Metals Corp.
Saga Metals Corp. is a North American mining
company focused on the exploration and discovery of critical
minerals to support the global green energy transition. Saga’s
flagship asset is the Double Mer Uranium project spanning 25,600
hectares and located between the towns of Goose Bay and Rigolet in
eastern Labrador, Canada. The Uranium radiometrics highlight an
18km east-west linear trend averaging ~500m in width with 14km
confirmed to contain highlight samples up to 4,281ppm U3O8 and
21,000cps on a spectrometer. The Company’s other primary asset is
the Legacy Lithium Project, located in the Eeyou Istchee James Bay
region of Quebec, Canada. The Company owns 65,849 hectares of land
in the eastern region of the La Grande sub-province aiming to
discover hard rock lithium minerals. The property is located along
strike from notable successes in the eastern region and with over
100+ pegmatites, Saga has confirmed four zones of LCT-bearing
pegmatites over a combined 7km strike. The Company’s secondary
asset is a Titanium and Vanadium project covering 17,250 hectares
located 10km south of Cartwright in Labrador. Here the Company has
discovered a 3.5km by 500m zone of enrichment containing over 6%
Titanium and up to 3,670ppm Vanadium.
For further information, please contact:Saga
Metals Corp.Investor RelationsTel: +1 (778) 930-1321Email:
info@sagametals.comwww.sagametals.com
Qualified Persons
Michael Cullen, P. Geo., and Rochelle Collins,
P. Geo., of Mercator Geological Services Limited are each a
“qualified person” as defined under National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“NI
43-101”) and have reviewed and approved the scientific and
technical content of this news release regarding the Double Mer
Uranium Property.
Kamil Khobzi, P. Eng., MBA, of Kamil Khobzi
& Associates Inc. is a “qualified person” as defined under NI
43-101 and has reviewed and approved the scientific and technical
content of this news release regarding the Legacy Lithium
Property.
Disclaimer Regarding Forward-Looking
Statements
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 acquisition of the Amirault Property and the
Company’s plans regarding such property. 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, failure to satisfy closing
conditions in respect of the Company’s initial public offering,
failure to list the Company’s common shares for trading on the TSX
Venture Exchange, risks and uncertainties involved in the mineral
exploration and development industry, and the risks detailed in the
Company’s preliminary prospectus dated April 26, 2024 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.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f4b29033-a5fd-4fc8-89a2-8bf37e13d797