VANCOUVER, British Columbia, July 03, 2024 (GLOBE NEWSWIRE) -- Saga Metals Corp. (the “Company” or “Saga”), a North American exploration company focused on critical mineral discovery in Canada, is pleased to announce the execution of an option to joint venture agreement on June 27, 2024 (the “Option Agreement”) with Rio Tinto Exploration Canada Inc. (“RTEC”) for its Legacy Lithium Project in the renowned James Bay Lithium District.
The Legacy Lithium Project is located in Quebec's Eeyou Istchee James Bay region (See “Lithium Neighborhood” Map below).
RTEC is a Canadian subsidiary of the Rio Tinto Group (LSE: RIO, ASX: RIO, NYSE: RIO).
Figure 1: A map of the “Lithium Neighborhood” at the Legacy Lithium Project in Quebec
Under the Option Agreement, RTEC has the option to acquire an initial 51% interest (the “First Option”) in the Legacy Lithium Project over a period of four (4) years, which it may exercise if it satisfies the following conditions:
- Cash payments totaling C$410,190 on or before August 11, 2024.
- Exploration expenditures totaling C$9,571,100, including a firm commitment to spend not less than C$1,709,125 in the first 20 months of the effective date of the Option Agreement.
- C$273,460 in cash payments to Saga ($68,365 per year) and additional payments of C$225,000 in aggregate, being equal in amount to the underlying claim acquisition amounts owed by Saga to the vendors from whom it acquired the Legacy Lithium Project.
After earning the right to acquire an initial 51% interest, RTEC will have the option to increase its interest in the Legacy Lithium Project to 75% (the “Second Option”) over a period of five (5) years following the four (4) year First Option term, by incurring exploration expenditures totaling an additional C$34,182,500 in exploration expenditures.
RTEC will act as project operator under the Option Agreement during the First Option period and the Second Option period. Saga and RTEC will form a technical committee to review and prepare the exploration programs.
The Legacy Lithium Project, optioned by RTEC, contains 663 claims spanning 34,243 hectares hosting 100km of striking paragneiss.
“This marks a significant milestone in the Company’s development and creates a non-dilutive pathway for the necessary capital to properly explore our Legacy Lithium Project over the coming years,” states Mike Stier, CEO & Director of Saga Metals Corp. “We look forward to partnering with Rio Tinto and hope to have a long and fruitful relationship for many years to come.”
To learn more about the Company’s projects select here.
About Saga Metals Corp.
Saga Metals Corp. is a North American minerals exploration company focused on the exploration and discovery of Critical Minerals to support the global green energy transition. The Company has an interest in four projects located in the Fraser Institute’s top mining jurisdictions of Quebec and Labrador, Canada focused on the exploration and discovery of Uranium, Lithium, Titanium, Vanadium, and Iron ore. For more information visit www.sagametals.com.
For further information, please contact:
Saga Metals Corp.
Investor Relations
Tel: +1 (778) 930-1321
Email: info@sagametals.com
www.sagametals.com
Cautionary Disclaimer
The map in Figure 1 and related narrative regarding proximal projects is provided for contextual and illustrative purposes only, and should not be construed a representation as to the similarities between the Legacy Lithium Project and the neighboring projects shown and discussed herein, each of which are at a more advanced stage of development. Development at such proximal projects may not be replicated similarly, or at all, at the Legacy Lithium Project.
This news release contains forward-looking statements within the meaning of applicable securities laws that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipates”, “expects”, “believes”, and similar expressions or the negative of these words or other comparable terminology. All statements other than statements of historical fact, included in this release are forward-looking statements that involve risks and uncertainties. In particular, this news release contains forward-looking information pertaining to the proposed exploration of the Legacy Lithium Project. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include, but are not limited to, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, environmental risks, limitations on insurance coverage, risks and uncertainties involved in the mineral exploration and development industry, and the risks detailed in the Company’s Preliminary Prospectus filed under its profile at www.sedarplus.ca and in the continuous disclosure filings made by the Company with securities regulations from time to time. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward- looking statements only as expressly required by applicable law.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/28cb1ac8-cf09-48ce-bb56-6d0584a168a9
