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Saga Metals Corp. (the “Company” or “SAGA“), a prominent North American entity specializing in exploration for critical minerals, has officially concluded its previously disclosed non-brokered private placement. This successful initiative has garnered a total of C$2,988,024.64 in gross proceeds.
Through this strategic offering, the Company has issued a combination of flow-through common share units and hard dollar common share units, which collectively are referred to as the Securities.
Specifically, the transaction included the issuance of 7,100,088 FT Units at a price of C$0.28 each, generating C$1,988,024.64, alongside 4,000,000 HD Units priced at C$0.25 each, yielding C$1,000,000.
Table of Contents:
Details of the Offering
The FT Units consist of one flow-through common share as defined by subsection 66(15) of the Income Tax Act (Canada), paired with one-half of a transferable common share purchase warrant. Each whole warrant permits the holder to acquire one common share at a price of C$0.50, valid until a date specified by the Company. It’s worth noting that shares acquired through these warrants do not qualify as flow-through shares under the Tax Act.
Conversely, the HD Units comprise one common share and one-half of a warrant, with similar conditions for the warrants. Each warrant, once whole, allows for the purchase of one common share at the same price and timeline.
Warrant Conditions and Hold Period
These warrants carry the potential for the Company to expedite their expiration by announcing a news release. This acceleration can occur 30 days after a notice, contingent on the closing price of the Company’s shares reaching or exceeding C$0.75 for a consecutive ten-day trading period post a date specified by the Company.
All securities issued under this offering are subject to a hold period of four months and one day following the closing date, which will conclude in compliance with applicable securities regulations.
Financial Details and Allocation of Proceeds
In conjunction with the offering, Saga Metals has distributed cash finder’s fees totaling $130,003 and has issued 478,204 finder’s warrants. Each finder’s warrant permits the acquisition of one common share at C$0.50 for a two-year duration starting from the closing date.
The funds raised through the FT Units will specifically be allocated toward Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures, as delineated in the Tax Act. Meanwhile, the net proceeds from the HD Units are earmarked for general administrative costs and working capital, potentially including investor relations efforts.
Marketing Initiatives and Agreements
In a parallel development, Saga Metals has engaged in a digital marketing services agreement with 1123963 B.C. Ltd., operating under the name Capitaliz. This agreement assigns Capitaliz the task of enhancing investor awareness and facilitating communication with the investment community over a three-month term. The services will encompass multimedia content production, targeted traffic generation, and strategic social media amplification.
The financial commitment for these services amounts to C$200,000, payable from the Company’s existing working capital. Additionally, the agreement is subject to the approval of the TSX Venture Exchange.
Moreover, Saga Metals has entered into a separate online marketing agreement with i2i Marketing Group, LLC, which encompasses corporate marketing and investor outreach services. This collaboration features a budget of US$250,000, allocated for content management and media distribution, and can extend month-to-month until either party opts for termination with a ten-day written notice.
About Saga Metals Corp.
Saga Metals is a key player in the North American mining sector, concentrating on the exploration of essential minerals that are pivotal for the transition to green energy. Among its notable projects is the Radar Titanium Project, covering an expansive 24,175 hectares and encapsulating the Dykes River intrusive complex in Labrador. The exploration efforts have already confirmed the presence of vanadiferous titanomagnetite with exceptional titanium and vanadium grades.
Additionally, the Double Mer Uranium Project spans 25,600 hectares, showcasing uranium radiometrics across an 18 km trend, with samples revealing concentrations as high as 0.428% U3O8. Saga also boasts the Legacy Lithium Property, which is complemented by the recently acquired Amirault Lithium Project in Quebec.
With a diverse portfolio of projects critical for the green energy landscape, Saga Metals is well-positioned to contribute significantly to the sustainable energy future.
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