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Saga Metals Corp. (referred to as SAGA), a prominent exploration company dedicated to critical minerals in North America, has triumphantly finalized its non-brokered private placement. This initiative has yielded an impressive total of C$2,988,024.64 in gross proceeds, reinforcing the company’s financial position and strategic objectives.
This fundraising effort involved the issuance of two distinct types of share units. Firstly, the company offered 7,100,088 flow-through common share units, termed FT Units, at a price of C$0.28 each, generating C$1,988,024.64.
Secondly, an additional 4,000,000 hard dollar common share units, known as HD Units, were made available at C$0.25 per unit, contributing C$1,000,000 to the total.
Table of Contents:
Details of the financing
Each FT Unit comprises one flow-through common share, as stipulated by subsection 66(15) of the Income Tax Act (Canada), along with one-half of a transferable common share purchase warrant. A complete warrant allows the holder to purchase one common share at a price of C$0.50 until a specified future date. It’s noteworthy that the shares derived from the FT Units will not be classified as flow-through shares under the provisions of the Tax Act.
In terms of HD Units, each consists of one common share and half of one warrant, with the same terms as the FT Units. Additionally, the company retains the authority to accelerate the expiry date of these warrants if the closing price of SAGA’s common shares reaches or exceeds C$0.75 for ten consecutive trading days after a specified future date.
Proceeds and usage
All securities issued in this offering are subject to a holding period of four months and one day, which will end on a specified future date. The funds generated through the FT Units will be allocated to Canadian exploration expenses related to critical mineral mining on the company’s Canadian properties. Conversely, the net proceeds from the HD Units will be utilized for general administrative purposes and working capital, including investor relations efforts.
Finder’s fees and marketing agreements
In connection with the placement, SAGA has also compensated finders with cash fees totaling C$130,003, alongside 478,204 finder’s warrants. These warrants will allow the holders to purchase additional common shares at a price of C$0.50 for a duration of 24 months following the closing date.
Moreover, SAGA has entered into a digital marketing services agreement with Capitaliz, effective from a specified future date. This agreement aims to enhance investor awareness and communication with the investment community. Capitaliz, a marketing agency with a vast reach across social media platforms, will deliver a range of services including multimedia content creation and targeted traffic generation. The fee for these services totals C$200,000, payable from the company’s working capital.
Further marketing initiatives
In addition to the arrangement with Capitaliz, SAGA has finalized an agreement with i2i Marketing Group, LLC. Under this agreement, i2i will provide corporate marketing and investor awareness services, with an initial budget of US$250,000 funded through the company’s available capital. The services will encompass content management, author sourcing, and media distribution, with the flexibility for ongoing monthly engagement.
Both marketing agreements are subject to the approval of the TSX Venture Exchange. Notably, neither Capitaliz nor i2i has any current interest in SAGA or its securities, ensuring a clear and unbiased partnership.
About Saga Metals Corp.
Saga Metals Corp. is committed to the exploration and development of a diverse range of critical minerals essential for the transition to green energy. The company’s Radar Titanium Project covers an expansive 24,175 hectares and is strategically located near the Dykes River intrusive complex in Labrador, Canada. This project has shown promising results from previous drilling, confirming the presence of vanadiferous titanomagnetite, rich in titanium and vanadium.
Additionally, the Double Mer Uranium Project spans 25,600 hectares, revealing an extensive east-west uranium trend, with samples indicating significant mineralization. SAGA also holds the Legacy Lithium Property in Quebec, further enhancing its portfolio alongside its partnership with Rio Tinto.
With a focus on pivotal minerals for the clean energy sector, Saga Metals is strategically positioned to contribute significantly to the industry’s future.
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