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Saga Metals Corp. (referred to as ‘SAGA’ or ‘the Company’), a prominent exploration firm in North America concentrating on critical minerals, has officially announced the closure of its well-received, non-brokered private placement. This financing initiative has yielded a total gross revenue of C$2,988,024.64.
The private placement comprised two distinct types of common share units: flow-through common share units and hard dollar common share units, which are collectively termed as ‘the Securities’.
This financing method allows SAGA to optimize its capital structure while effectively pursuing its core exploration activities.
Table of Contents:
Details of the private placement
Specifically, the offering resulted in the issuance of 7,100,088 flow-through common share units at a price of C$0.28 each, amounting to gross proceeds of C$1,988,024.64. Additionally, 4,000,000 hard dollar common share units were sold at C$0.25 per unit, contributing an additional C$1,000,000.
Each flow-through unit consists of a common share as per subsection 66(15) of the Income Tax Act (Canada) and half a transferable common share purchase warrant. The warrants grant the right to purchase a common share at a price of C$0.50, valid until October 10. Importantly, the underlying shares from these flow-through units do not qualify as flow-through shares under the same act.
Conditions and securities regulation
For the hard dollar units, each unit consists of a common share paired with half a warrant. Similar to the flow-through units, the warrant will allow the holder to acquire a common share at C$0.50 until the same expiry date. The Company reserves the right to accelerate the expiry date of the warrants if the closing price of the common shares reaches or exceeds C$0.75 for a consecutive ten-day trading period after October 10.
All securities from this offering are restricted under applicable securities laws, with a hold period lasting four months and one day post-closing, ending on February 11.
Use of proceeds and fees
SAGA intends to allocate the proceeds from the flow-through units towards Canadian exploration expenses related to critical mineral mining as outlined in the Tax Act. Conversely, the net income from the hard dollar units will be utilized for administrative expenses and operational costs, which may also encompass investor relations efforts.
As part of the financing arrangement, the Company has disbursed a total of $130,003 as cash finder’s fees and issued 478,204 finder’s warrants. These warrants allow the holder to purchase a common share at $0.50 for a duration of 24 months from the closing date.
Marketing initiatives and agreements
In addition to the funding news, SAGA has entered into a digital marketing agreement with Capitaliz, effective from October 13. Under this agreement, Capitaliz will provide various marketing services aimed at enhancing investor awareness and engagement with the investment community.
The services provided by Capitaliz will extend over a three-month period, potentially including multimedia content creation and strategic social media amplification. SAGA has committed to pay Capitaliz C$200,000 plus applicable taxes for these services, funded through its available working capital.
Additional marketing collaboration
Moreover, SAGA has established an online marketing agreement with i2i Marketing Group, LLC. This collaboration will focus on corporate marketing and investor outreach, encompassing content creation and media distribution strategies.
Initially budgeted at US$250,000, this agreement allows flexibility for continued services on a month-to-month basis. Both marketing agreements are awaiting approval from the TSX Venture Exchange.
About Saga Metals Corp.
Saga Metals Corp. is dedicated to the exploration of critical minerals vital for supporting the transition to a sustainable energy future. Their notable projects include the Radar Titanium Project, which spans 24,175 hectares in Labrador, and the Double Mer Uranium Project, covering 25,600 hectares. The Company also possesses the Legacy Lithium Property in Quebec, showcasing a robust portfolio that aligns with the growing demand for green energy resources.
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