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SAGA Metals and Rio Tinto Sign Joint Venture for Quebec Lithium Asset

SAGA Metals Corp. (SGA), a North American exploration company, has announced an option to joint venture agreement with Rio Tinto Exploration Canada Inc. (RTEC) for its Legacy Lithium Project in the James Bay Lithium District of Quebec.

RTEC, a subsidiary of the Rio Tinto Group, has the option to acquire a 51% interest in the Legacy Lithium Project over four years. This includes cash payments totaling C$410,190 and C$9,571,100 in exploration expenditures, with a firm commitment of C$1,709,125 in the first 20 months.

Details of the Option Agreement

First Option Period

RTEC must satisfy the following conditions to acquire a 51% interest:

  • Cash payments totaling C$410,190 by August 11, 2024.
  • Exploration expenditures totaling C$9,571,100, including a firm commitment of C$1,709,125 within 20 months.
  • C$273,460 in annual cash payments to SAGA Metals Corp. and additional payments of C$225,000.

Second Option Period

After earning the initial 51% interest, RTEC can increase its stake to 75% by incurring an additional C$34,182,500 in exploration expenditures over the next five years.

RTEC will be the project operator during both the First and Second Option periods, and both companies will form a technical committee to oversee the exploration programs.

Legacy Lithium Project

The Legacy Lithium Project, located in Quebec’s Eeyou Istchee James Bay region, spans 663 claims covering 34,243 hectares. It hosts 100km of striking paragneiss.

Significance of the Agreement

“This marks a significant milestone in the company’s development and creates a non-dilutive pathway for the necessary capital to explore our Legacy Lithium Project,” stated Mike Stier, CEO & Director of SAGA Metals Corp.

About SAGA Metals Corp.

SAGA Metals Corp. is focused on discovering critical minerals to support the global green energy transition. With interests in four projects across Quebec and Labrador, their focus includes the exploration of Uranium, Lithium, Titanium, Vanadium, and Iron ore.

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