Saga Metals has executed a binding agreement to sell its North Wind Iron Ore Project in Quebec to Orion Iron Ore. Under the terms of the transaction, Saga will receive 4 million common shares of Orion, a seat on the Orion board, and a 2% Gross Overriding Royalty on the project.

Saga retains the option to repurchase 1% of the royalty for $500,000 on or before the commencement of commercial production, or for $1.5 million after the fourth anniversary of the agreement but before commercial production begins.

The project, which spans 6,375 hectares, is located 16 kilometres southwest of Schefferville and contains magnetite-rich taconite ore. Orion, a private explorer, is currently assembling an iron complex in the Labrador Trough and aims to complete a public listing within the next 12 months.

“We believe every asset in our portfolio holds significant potential in the critical minerals space.”

“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.”

— Mike Stier, CEO & Director, Saga Metals

Shares in Saga are currently trading at $0.51, up 17.24% today.

The broader Labrador Trough district remains active, with the Iron Bear Project—located in the same region—expecting a final US$1.3 million funding tranche this summer as part of its ongoing development partnership.

Read the full announcement: SAGA Metals Executes Property Sale Agreement for the North Wind Iron Ore Project in Labrador