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In a significant milestone for the company, Saga Metals Corp. has successfully closed its fully subscribed non-brokered private placement, securing total gross proceeds of C$2,988,024.64. This funding aims to bolster the company’s efforts in exploring critical mineral resources across North America.
As a company primarily focused on the exploration of vital minerals, Saga Metals is positioning itself at the forefront of the green energy transition. The recent funding will support its strategic initiatives and exploration projects, enabling the identification and development of critical mineral assets.
Details of the private placement
Under the terms of the private placement, Saga Metals issued two types of units: flow-through common share units and hard dollar common share units. Specifically, the company issued a total of 7,100,088 flow-through units at a price of C$0.28 each, generating gross proceeds of approximately C$1,988,024.64. Additionally, 4,000,000 hard dollar units were issued at C$0.25, contributing an additional C$1,000,000 to the company’s coffers.
Each flow-through unit consists of one common share as defined in the Income Tax Act (Canada) and half of a transferable common share purchase warrant. Holders of these warrants can purchase one common share at C$0.50 until October 10. It is important to note that the shares linked to the flow-through units will not be classified as flow-through shares under the Tax Act.
Investment insights and future implications
On the other hand, each hard dollar unit consists of one common share and half of a warrant, with similar purchase rights as the flow-through units. The company retains the right to accelerate the expiry of the warrants if the closing price of the shares exceeds C$0.75 for a consecutive ten-day trading period after October 10.
In connection with this offering, Saga Metals has also incurred cash finder’s fees totaling $130,003 and provided 478,204 finder’s warrants, which enable the holders to purchase common shares at C$0.50 for a period of two years from the closing date.
Utilization of proceeds and marketing initiatives
The funds raised from the flow-through units will be allocated towards Canadian exploration expenses and will specifically focus on the flow-through critical mineral mining expenditures as outlined in the Tax Act. In contrast, the net proceeds from the hard dollar units will be utilized for administrative expenses and general working capital, which may include activities related to investor relations.
Furthermore, Saga Metals has entered into a marketing services agreement effective from October 13, with Capitaliz, a digital marketing agency. This collaboration aims to enhance investor awareness and communication regarding the company’s operations. Capitaliz will provide various services over a three-month period, with a total fee of C$200,000 paid from the company’s available working capital.
Enhancing investor relations
In addition to the agreement with Capitaliz, Saga Metals has also established a partnership with i2i Marketing Group, LLC. Under this agreement, i2i will deliver corporate marketing and investor awareness services, including content management and media distribution, with an initial budget set at US$250,000.
Both marketing agreements are intended to amplify the company’s visibility within the investment community and leverage various communication channels to promote its strategic initiatives.
About Saga Metals
Saga Metals Corp. is dedicated to uncovering a range of critical minerals essential for the shift towards sustainable energy solutions. The company’s flagship project, the Radar Titanium Project, spans 24,175 hectares in Labrador, showcasing a mineralized layered mafic intrusion with significant titanium and vanadium grades. Concurrently, the Double Mer Uranium Project covers 25,600 hectares and presents promising uranium radiometric anomalies.
Additionally, the company is advancing its Legacy Lithium Property in Quebec, which has been further enhanced through the acquisition of the Amirault Lithium Project. Collectively, these projects underline Saga Metals’ commitment to playing a pivotal role in the clean energy landscape.
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