SAGA metals to acquire Wolverine REE project to expand rare earth portfolio

SAGA Metals Corp. has entered into an agreement to acquire the Wolverine rare earth project in Labrador from Catalyst Rare Metals Ltd., a deal that would give it full ownership of the asset.

The project is about 50 km from Hopedale and covers a bit over 230 sq. km. Access is by air mostly, then helicopter. Not unusual for that region.

The company has been adding different minerals to its portfolio over the past year, lithium, uranium, vanadium, and this one adds rare earths. CEO Mike Stier said it fits into supply chain needs for energy and defence, which is the usual angle companies are taking right now.

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Geology is tied to the Flowers River Igneous Suite. Same broader system where Strange Lake and Tanbreez sit. Here the mineralisation is near the surface and sits in volcanic ash-flow rocks. That’s different from some deeper deposits and could matter later for mining.

The ore carries bastnäsite, monazite and allanite. Heavy rare earth share is somewhere in the mid-20 per cent range. There’s also some niobium and zirconium noted.

Drilling so far is early-stage. Some shallow work returned grades above 1 per cent TREO. In 2025 they drilled 25 RC holes across roughly a 1.7 km by 1.2 km area. Nineteen of those hit over 0.2 per cent TREO. A few intercepts stand out, about 48.8 metres at 0.77 per cent, 38.1 metres at 0.71 per cent, and another over 50 metres at 0.52 per cent. Peak samples went just over 2 per cent TREO.

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According to Michael Garagan, the extent of the system is still not fully defined, leaving room for further expansion.

Next steps are expected to include diamond drilling to better understand vertical continuity and to move the project toward a resource estimate under NI 43-101 standards.

Under the deal terms, SAGA will issue 4.25 million shares and pay USD 1 million in cash on closing, with additional payments tied to milestones. These include further share issuances and USD 1 million tranches linked to resource definition and economic studies, with longer-term targets referencing project economics such as net present value and internal rate of return.

Some of the shares issued will be subject to staged lock-ups of up to three years. The transaction remains subject to approvals, including from the TSX Venture Exchange.

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