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Saga Metals Corp. (referred to as SAGA or the Company), engaged in vital mineral exploration across North America, has announced the completion of its non-brokered private placement. This strategic move raised an impressive total of C$2,988,024.64. The funding will further the Company’s commitment to exploring and developing critical minerals essential for a sustainable energy future.
This offering featured two types of units: flow-through common share units and hard dollar common share units, which were made available at respective prices of C$0.28 and C$0.25.
The flow-through units alone generated around C$1,988,024.64, while the hard dollar units contributed C$1,000,000.
Table of Contents:
Details of the offering
Each flow-through unit, designated as FT Units, consists of one common share along with one-half of a transferable common share purchase warrant. The warrants enable holders to purchase one common share at a price of C$0.50, valid until October 10. Importantly, the shares associated with these warrants do not classify as flow-through shares under the Canadian Income Tax Act.
Conversely, the hard dollar units, termed HD Units, comprise one common share and a similar structure of warrants. These warrants also allow for the acquisition of shares at a price of C$0.50 until the same expiry date.
Warrant acceleration and restrictions
The Company reserves the right to accelerate the expiry of the warrants if, after the closing date, the market price of the common shares reaches or exceeds C$0.75 for ten consecutive trading days. This acceleration would take effect 30 days after the announcement is made.
All securities issued under this offering are subject to a hold period of four months and one day, concluding on February 11, as per applicable securities regulations.
Use of proceeds and management fees
From the capital raised through the flow-through units, Saga Metals intends to allocate funds for Canadian exploration expenses, specifically targeted at enhancing critical mineral mining initiatives within its Canadian properties. Meanwhile, the proceeds from the hard dollar units will support general administrative expenses and bolster working capital, which may extend to investor relations efforts.
In conjunction with the offering, the Company has incurred a finder’s fee amounting to $130,003 and has granted a total of 478,204 finder’s warrants, which permit the holders to buy a common share at $0.50 each for a two-year period following the closing date.
Marketing initiatives to enhance visibility
In addition to the funding announcement, Saga Metals has established a digital marketing partnership with Capitaliz, effective from October 13. This agreement aims to bolster investor awareness and strengthen communication between the Company and the investment community.
Capitaliz specializes in connecting public organizations with social media influencers, tapping into a vast network that boasts over 100 million subscribers across prominent platforms. Their services will include multimedia content creation, targeted traffic generation, and strategic amplification across various social media channels.
Ongoing marketing agreements
Moreover, the Company has also signed an agreement with i2i Marketing Group, LLC, which focuses on corporate marketing and investor awareness. This collaboration will utilize an initial budget of US$250,000 for a range of services, including content management and media distribution.
Both marketing arrangements emphasize online delivery and communication, ensuring that Saga Metals remains visible within the investment community while promoting its ongoing projects.
About Saga Metals Corp.
Saga Metals is dedicated to the exploration of critical minerals pivotal for the transition to green energy. Their flagship project, the Radar Titanium Project, spans 24,175 hectares and is located near Cartwright, Labrador. This project encompasses the Dykes River intrusive complex, which has shown promising results from previous drilling activities.
Furthermore, the Double Mer Uranium Project in Labrador covers an impressive 25,600 hectares and has identified substantial uranium radiometrics over an 18-kilometer trend. The Company also possesses the Legacy Lithium Property in Quebec, which is being developed in collaboration with Rio Tinto.
With its diverse portfolio of mineral properties, Saga Metals is strategically positioned to contribute significantly to the green energy sector and drive sustainable practices in the mining industry.
On Behalf of the Board of Directors
Mike Stier, Chief Executive Officer
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