VANCOUVER, British Columbia, July 02, 2024 (GLOBE NEWSWIRE) -- 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 Relations
Tel: +1 (778) 930-1321
Email: info@sagametals.com
www.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
