SAGA Metals (TSX-V:SAGA) has executed a property sale agreement with privately held Orion Iron Ore for the North Wind Iron Ore Project in Labrador, Canada.
As part of the deal, SAGA will receive 4 million shares of Orion, obtain one board seat within the company, which will be held by CEO Mike Stier, as well as a 2% gross overriding royalty.
The company will also have the ability to repurchase a 1% net smelter return royalty for C$500,000 ($504,481) at any time on or before the date of starting commercial production, as well as after the fourth anniversary of starting commercial production for C$1.5 million.
Stier says that as the company has developed its project pipeline over the past several years, it has consistently shown the ability to create value through non-dilutive opportunities.
“The sale of the North Wind Iron Ore Project continues that disciplined approach,” the CEO says.
“By securing equity in Orion, a board seat, and a retained royalty, we maintain meaningful upside exposure to the Labrador Trough while sharpening our focus on our core critical mineral assets.”
The Labrador Trough is a major paleoproterozoic geological terrane stretching 1,600km from northern Québec into Labrador.
Gusts of iron ore
The North Wind Project spans 6,375 hectares across 255 claim blocks under a single licence. The project has iron ore potential, with grab samples ranging as high as 84.57% iron oxide.
Fieldwork has also identified iron ore mineralisation over a 4km northwest-southeast trend, with indications that the mineralised zone continues southeast. Mapping in the area suggests that the units dip shallowly to the northeast which will make easy drill targets for resource estimation.
Orion’s current portfolio centres on two complementary properties within the Labrador Trough. The H2 Project, covering 11,425 hectares, is a fully permitted early-stage exploration asset. The Lac Le Fer Project, covering 37,000 hectares, is an iron ore prospective asset located in northern Québec.
Together, both of these properties, with the addition of SAGA’s North Wind Project, gives Orion a district-scale footprint in the infrastructure-rich iron ore region.
Orion is an iron ore explorer focused on assembling and advancing an iron complex in the Labrador Trough.
SAGA Metals is an explorer and developer focused on a diversified suite of critical minerals that supports the North American transition to supply security.
The company recently mobilised a 4,000-5,000m diamond drilling program at the Wolverine Heavy Rare Earth Element Project in Canada. This activity is being conducted ahead of a maiden mineral resource.
Write to Aaliyah Rogan at Mining.com.au
Images: SAGA Metals
