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 filed its final IPO prospectus (the
“
Final Prospectus”) with the securities regulatory
authorities in each of the provinces of British Columbia, Alberta
and Ontario, for an initial public offering of units of the Company
for minimum gross proceeds of C$2,500,000 (the
“
Offering”). The Offering will consist of a
minimum of:
- 2,500,000 hard dollar units of the
Company (the “HD Units”) at a price of C$0.40 per
HD Unit;
- 1,041,667 standard “flow-through”
units of the Company (the “Standard FT Units”) at
a price of C$0.48 per Standard FT Unit; and
- 1,666,667 “charity flow-through”
units of the Company (the “Charity FT Units”, and
together with the HD Units and the Standard FT Units, the
“Offered Units”) at a price of C$0.60 per Charity
FT Unit.
Each HD Unit consists of one common share of the
Company (an “HD Share”) and one-half of one
transferable common share purchase warrant (each whole such
warrant, an “HD Warrant”). Each HD Warrant will
entitle its holder to purchase one common share in the capital of
the Company (each, a “Warrant Share”) at a price
of C$0.60 per Warrant Share at any time prior to 4:30 p.m. on the
date that is 24 months following the closing of the Offering (the
“Closing”).
Each Standard FT Unit and Charity FT Unit
consists of a “flow-through 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
“FT Warrant”). The FT Warrants will have the same
terms as the HD Warrants and are exercisable into common shares of
the Company (“Warrant Shares”).
The Offering is being made on a best-efforts
basis led by Research Capital Corporation, as sole agent and
bookrunner (the “Agent”).
Saga received conditional approval from the TSX
Venture Exchange (the “TSXV”) to list its common
shares (including the HD Shares, FT Shares and Warrant Shares) on
the TSXV. Listing will be subject to the Company fulfilling all the
listing requirements and conditions of the TSXV, including
prescribed distribution and financial requirements. Once final
approval is received, the Company’s common shares will commence
trading under the symbol “SAGA”.
The Offering is expected to close on or about
July 29, 2024, or on such other date as agreed upon between the
Company and Agent and is subject to, among other things, the
receipt of customary approvals, including regulatory approvals.
“I commend the hard work from our entire team,
both internal and external,” stated Mike Stier, CEO & Director
of Saga Metals. “We anticipate receiving the receipt for our final
prospectus later this afternoon, after which the IPO can officially
launch.”
Saga Metals is a mining exploration company
focused on discovering Uranium and Lithium, while also holding
additional projects prospective for Titanium, Vanadium &
High-Purity Iron as Part of North America’s Critical Mineral
Strategy. The Company is a diversified critical mineral exploration
company whose principal business is the acquisition and exploration
of mineral assets that support the global green energy transition.
The Company currently has four 100% owned mineral properties in
Canada.
Map of SAGA Metals Projects
Primary Property #1: Uranium in Labrador, Canada
The Double Mer Uranium Property is Saga’s
primary uranium exploration project consisting of 1,024 claims
covering an area of 25,600 hectares in eastern central Labrador; 90
km northeast of Happy Valley, Goose Bay, which is the subject of
the Double Mer Uranium Technical Report (available under the
Company’s profile at www.sedarplus.com). Double Mer has been the
subject of substantial historical exploration, and Saga has
evaluated a 14km strike of anomalous rock samples with results
including 4,280ppm of Uranium and upwards of 20,000cps from the
scintillometer. The Uranium radiometrics highlight an 18 km
east-west linear trend averaging approximately 500 meters in width.
The property sits within the northeastern part of the Grenville
Structural Province and contains similarly linked geology to the
Central Mineral Belt located just north of the property boundary
and host to other notable Uranium projects including Atha Energy
and Paladin Energy as depicted in the map below.
Regional map of the Double Mer Uranium Project in
Labrador, Canada
Primary Property #2: Lithium in James Bay, Quebec
The Legacy Lithium Property is Saga’s additional
primary project. The Legacy Lithium project is an LCT spodumene
pegmatite lithium exploration project consisting of an aggregate of
663 claims covering an area of 34,243.76 hectares in the Eeyou
Istchee James Bay region of Quebec. These claims are subject to the
Rio Tinto partnership signed on June 27, 2024. Learn more about the
Rio Tinto partnership by selecting here: SAGA Metals and Rio Tinto
Sign Option to Joint Venture Agreement for Lithium Asset in Eastern
James Bay, Quebec. Saga also acquired a 100% interest in 611
mining claims covering an area of 31,605.44 hectares called the
‘Amirault Lithium Property’ and is contiguous to Saga’s Legacy
Lithium project expanding the total contiguous land holdings to
1,274 claims spanning 65,849.20 hectares. Learn more about the
Amirault Lithium Property Acquisition by selecting here: SAGA
Metals to Acquire Amirault Lithium Property in Quebec. 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. To-date, Saga has
confirmed 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.
A map of the “Lithium Neighborhood” at the Legacy
Lithium Project in Quebec
Property #3: Titanium and Vanadium in Labrador,
Canada
The Radar Titanium-Vanadium Property is a
secondary project focused on a titanium-vanadium layered mafic
intrusion. The exploration project consists of 690 claims covering
17,250 hectares in the Cartwright, Goose Bay region of Labrador.
Saga has identified a 3.5 km by 500 m zone of enrichment containing
6.63% titanium and nearly 4,000 ppm vanadium, as shown in the image
below.
Radar Project Hawkeye zone and corresponding
geophysics cutline program overview
Property #4: Iron Ore in Labrador, Canada
The North Wind Iron Ore Property is a secondary
project consisting of 255 claims covering 6,375 hectares in West
Central Labrador. This project includes 8 historical drill holes
that were part of New Millennium Iron's resource estimate 43-101 in
2013. The average grade of these drill holes, now within the North
Wind Iron property, was 20.74% Fe, with the highest graded
stratigraphy averaging 24.76% Fe. A property map is shown
below.
Regional map of the North Wind Iron Ore Project
in Labrador, Canada
The Final Prospectus contains important
information relating to Saga and the Offered Units and is subject
to completion or amendment. Copies of the Final Prospectus are
expected to be available under Saga’s profile on SEDAR+ at
www.sedarplus.ca or may be obtained from the Agent listed
above.
No securities regulatory authority has either
approved or disapproved of the contents of this news release. The
Offered Units, the HD Shares and the Warrants comprising the HD
Units, the FT Shares and FT Warrants comprising the Standard FT
Units and Charity FT Units, and the Warrant Shares issuable upon
exercise of the HD Warrants and FT Warrants, 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. Accordingly, the Offered Units may not be
offered or sold within the United States or to U.S. persons (as
defined in Regulation S under the U.S. Securities Act) unless
registered under the U.S. Securities Act and applicable state
securities laws, or pursuant to exemptions from the registration
requirements of the U.S. Securities Act and applicable state
securities laws. 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.
For more information about the Company’s
business and mineral properties, please see the Company’s news
releases dated May 1, 2024, July 2, 2024 and July 3, 2024.
To learn more about the Company’s projects visit the projects
page here and corporate video here.
To access the company’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 specializing in the exploration and discovery of critical
minerals to advance the global green energy transition. The
company's flagship asset is the Double Mer Uranium project,
covering 25,600 hectares on the east coast of Labrador, Canada.
Uranium radiometrics reveal an 18 km east-west linear trend
averaging approximately 500 meters in width, with a confirmed 14 km
section containing samples up to 4,281 ppm U3O8 and readings of
21,000 cps on a spectrometer.
Saga Metals' primary additional asset is the
Legacy Lithium Property located in Quebec's Eeyou Istchee James Bay
region. This property is part of a partnership with Rio Tinto and
includes the acquisition of the Amirault Lithium property.
Together, these projects cover 65,849.20 hectares and share
geological continuity with Rio Tinto, Winsome Resources, Azimut
Exploration, and Loyal Lithium in the La Grande sub-province.
The company also holds two secondary assets
focused on titanium, vanadium, and iron ore discovery in
Newfoundland and Labrador, Canada.
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 proposed Offering and the Company’s plans with
respect to its mineral exploration properties. 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 Offering, 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 available under the Company’s 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
https://www.globenewswire.com/NewsRoom/AttachmentNg/6ab5fbcf-9fd3-42d1-b7da-c299d602148a
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https://www.globenewswire.com/NewsRoom/AttachmentNg/b67822bb-e0ba-414d-82e7-34d3f3977942
https://www.globenewswire.com/NewsRoom/AttachmentNg/6640b3b7-a12c-4fc6-b717-8df832dcfe26
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