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Saga Metals Corp. (SAGA or the Company) has made headlines with the conclusion of its non-brokered private placement, which has garnered a total of C$2,988,024.64 in gross proceeds. This funding will significantly bolster the Company’s efforts in exploring critical minerals essential for a sustainable future.
The private placement was executed in two principal tranches: the issuance of flow-through common share units and hard dollar common share units. Specifically, the Company issued a total of 7,100,088 flow-through units, priced at C$0.28 each, raising approximately C$1,988,024.64. In addition, 4,000,000 hard dollar units were sold at C$0.25 each, contributing an additional C$1,000,000.
Details of the financing structure
Each flow-through unit consists of one common share, classified under subsection 66(15) of the Income Tax Act (Canada), paired with half of a transferable common share purchase warrant. This warrant allows the holder to acquire one additional common share at a price of C$0.50 until a specified date. Importantly, the warrant shares derived from the flow-through units will not be recognized as flow-through shares under the aforementioned Tax Act.
In contrast, the hard dollar units comprise a single common share along with half of a warrant, which similarly allows the purchase of one common share at the same price and expiration date.
Conditions of the warrants
The warrants come with a unique feature: the Company retains the right to accelerate their expiry. This can occur if the closing price of the Company’s common shares reaches or exceeds C$0.75 for a period of ten consecutive trading days on the TSX Venture Exchange. In such a case, the expiration date would shift to 30 days post-announcement.
Additionally, all securities associated with this offering are subject to a hold period of four months and one day, concluding in compliance with securities regulations.
Use of funds and other financial obligations
The proceeds from the flow-through offerings will be allocated towards Canadian exploration expenses, specifically targeting flow-through critical mineral mining expenditures as defined in the Tax Act. Conversely, funds from the hard dollar offerings are earmarked for general administrative expenses and working capital, potentially including investor relations activities.
The Company has also compensated finders involved in this private placement, paying a total cash fee of $130,003 and issuing 478,204 finder’s warrants. Each finder’s warrant enables the holder to purchase one common share at a price of $0.50 for a period of 24 months following the closing date.
Marketing initiatives and agreements
In addition to securing funding, Saga Metals has partnered with Capitaliz, a digital marketing agency, to enhance its investor outreach. Under the Capitaliz Agreement, which commenced on a specified date, Capitaliz will provide various marketing services aimed at increasing investor awareness. This agreement is set for a three-month duration, with the Company committing to a fee of C$200,000 for these services.
Furthermore, Saga Metals has entered into a separate agreement with i2i Marketing Group, LLC, focusing on corporate marketing and investor engagement. This i2i Agreement entails an initial budget of US$250,000, which may extend on a month-to-month basis, aimed at content creation and media distribution.
About Saga Metals Corp.
Saga Metals Corp. is a North American exploration firm dedicated to discovering a diverse range of critical minerals vital to the transition towards green energy solutions. The Company’s notable projects include the Radar Titanium Project and the Double Mer Uranium Project, both situated in Labrador, as well as the Legacy Lithium Property in Quebec’s Eeyou Istchee James Bay region.
The Radar Titanium Project spans 24,175 hectares and encompasses a mineral-rich layered mafic intrusion, while the Double Mer Uranium Project covers 25,600 hectares with promising uranium radiometrics. The Legacy Lithium Property, developed in collaboration with Rio Tinto, further solidifies the Company’s position within the critical minerals sector.
With its strategic focus on essential minerals, Saga Metals is well-prepared to contribute to a sustainable energy future.
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