SAGA Metals (TSX-V:SAGA) has entered into a share purchase agreement to acquire Catalyst Rare Metals, which owns the Wolverine Rare Earth Element (REE) Project in Canada.
The Wolverine Project, covering 230.5km2, comprises five contiguous mineral licences situated 12km inland from the Labrador coast. The project is hosted within the Flowers River Igneous Suite — the largest peralkaline intrusive-volcanic complex in Labrador.
Under the agreement, SAGA will acquire all of Catalyst via the issue of 4.25 million shares in the company, as well as pay C$1 million ($1.01 million) in cash.
SAGA will also make several milestone payments to the vendors upon achieving certain milestones. These include issuing 12 million shares and paying C$2 million in cash after establishing a mineral resource of at least 370,0000 ounces of contained total rare earth oxide (TREO) in the inferred category, as well as of up to at least 700,000 ounces of contained TREO in the indicated category.
The company will also issue C$15 million shares and pay C$3 million in cash to the vendors after completing a preliminary economic assessment, a Prefeasibility Study, and a Feasibility Study.
CEO Mike Stier says the acquisition completes the company’s diversified portfolio of critical mineral projects, strategically positioned to support North American supply security and national defence priorities.
“With titanium, uranium, vanadium, lithium, and now a high-potential heavy rare earth asset all 100% owned in tier–one jurisdictions, SAGA is well placed to deliver the strategic metals essential for the clean energy transition and defence applications,” Stier says.
“Wolverine’s scale, heavy REE enrichment, and clear path to resource delineation positions it as a well-timed addition with significant potential.”
SAGA intends to advance the Wolverine Project toward an initial resource estimate, subject to completing diamond core drilling, as well as metallurgical testing.
Chief Geological Officer Michael Garagan notes that the project’s 2025 reverse circulation drilling program has delivered consistent intercepts across a 1.7km by 1.2km footprint, confirming a thick, gently dipping, stratabound REE horizon hosted in a giant peralkaline caldera system.
“With peak grades exceeding 2% TREO, a heavy rare earth content of 28%, and a clear pathway to a maiden resource estimate, Wolverine offers a near-surface, volcanic-hosted expression of the same broader peralkaline province that hosts major rare earth deposits like Tanbreez and Strange Lake,” Garagan says.
SAGA Metals is a North American explorer focused on a suite of critical minerals.
Write to Aaliyah Rogan at Mining.com.au
Images: SAGA Metals
