The exploration company Saga Metals Corp. (TSXV: SAGA, OTC: SAGMF, FSE: 20H) has closed an oversubscribed, non-brokered private placement that generated gross proceeds of C$10,236,486.65. The financing comprised 15,748,441 flow-through common share units (the FT Units) priced at C$0.65 per FT Unit. This transaction follows the company announcement dated April 24, 2026 and reinforces the balance sheet as Saga prepares to advance multiple exploration programs.
The placement reflects strong market interest in companies targeting critical minerals that support North America’s supply security objectives.
Table of Contents:
Structure of the offering and security terms
Each FT Unit issued consists of one flow-through common share as defined in subsection 66(15) of the Income Tax Act and one-half of a transferable non-flow-through common share purchase warrant (each whole instrument, a Warrant). Each whole Warrant permits the holder to acquire one non-flow-through common share (a Warrant Share) at an exercise price of C$1.10 for a period of 24 months following the closing date. The underlying Warrant Shares issued on exercise of FT Unit warrants will not qualify as flow-through shares under the Tax Act. In connection with the placement Saga paid finder’s fees totaling C$550,713.54 and issued 847,252 non-transferable finder’s warrants, each exercisable at C$1.10 for 24 months.
Exercise acceleration, hold period and use of proceeds
The company retains the right to accelerate expiry of both Warrants and Finder’s Warrants if the closing price of its common shares on the TSX Venture Exchange equals or exceeds C$1.75 for ten consecutive trading days; upon such a trigger holders would have 30 days to exercise. All securities issued in the placement are subject to a statutory hold period of four months and one day from closing. The gross proceeds from the FT Units will be allocated to Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures under the Tax Act, with the objective of advancing fieldwork and delivering maiden resource estimates on priority projects.
Project portfolio and near-term technical plans
Saga’s portfolio targets multiple commodities central to energy transition supply chains. The Radar Ti‑V‑Fe Project spans 24,175 hectares and fully encloses the Dykes River intrusive complex, mapped at 160 km² near Cartwright, Labrador. Exploration to date, including 13,337 m of drilling, has identified a large mineralized layered mafic intrusion hosting vanadiferous titanomagnetite (VTM) and ilmenite mineralization, with robust concentrations of titanium and vanadium. The new funding is intended to support follow-up drilling and resource definition work aimed at converting favourable intercepts into maiden resource statements.
Wolverine heavy rare earth elements
Saga has signed a definitive agreement to acquire 100% of the Wolverine heavy rare earth element Project in Labrador, a near-surface REE system hosted within a peralkaline caldera complex that shows geological similarities to deposits such as Tanbreez and Strange Lake. The target area displays continuous mineralization across zones totaling about 26 km², with drill assays up to 2.03% TREO containing approximately 28% HREO, and grab samples returning up to 21.6% TREO. These characteristics highlight potential for both critical heavy rare earth elements and broader REE mineralization.
Uranium and lithium assets
The company’s Double Mer Uranium Project covers 25,600 hectares and features radiometric anomalies that define an 18 km east-west trend, with a confirmed 14 km portion returning sample results as high as 0.428% U3O8 (see 2026 Double Mer Technical Report). In Quebec, the Legacy Lithium Project occupies 65,849 hectares in the Eeyou Istchee James Bay region and shares geological continuity with nearby operators including Rio Tinto, Li‑FT Power, SOQUEM, and Loyal Metals. The combined portfolio positions Saga to advance multiple commodity targets using the proceeds from the flow-through placement.
Marketing, compliance and forward-looking considerations
Further to the agreement announced on March 5, 2026, Saga executed an addendum with Capitaliz Marketing Inc. to expand its investor awareness campaign by $200,000 (CAD). The original terms remain in force; there is no equity-based or success fee compensation under the original agreement or the addendum. All marketing activities are performed under the company’s supervision and in compliance with applicable securities rules and TSXV policies. Saga also reminds investors that the securities issued in the offering have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except in compliance with applicable exemptions. This news release contains forward-looking statements about future plans and expectations that are subject to risks and uncertainties, and readers should consult Saga’s continuous disclosure filings for additional detail.
