Saga Metals has entered into an agreement with two undisclosed arm’s length private vendors to acquire a 100% interest in the Amirault Lithium Property in Quebec, Canada.

The Amirault property covers an area of 31,347ha in the Eeyou Istchee James Bay region of Quebec.

Under the agreement, Saga Metals will make a $200,000 (C$272,450) cash payment and issue four million common shares to the vendors.

The Amirault Lithium Property is contiguous to Saga's existing Legacy Lithium project, thereby significantly increasing the company's land holdings in the area to 1,274 claims covering 65,849ha.

Saga Metals chief geological office Michael Garagan said: “This is an exciting acquisition for Saga Metals Corp. Increasing our claim package over the prospective paragneiss in this up-and-coming eastern district of James Bay’s La Grande sub-province gives the company lots of options in the future.

“With early indications from lake sediments over the area we look forward to uncovering what this property holds.”

At the Legacy Lithium Project, Saga stated that it has so far discovered more than 100 pegmatites with a total 7km strike of lithium, cesium & tantalum (LCT) bearing pegmatites and more than 90% of the project is still unexplored.

Saga Metals CEO and director Mike Stier said: “This is another great milestone completed as we continue to build towards our IPO [initial public offering].

“We are working through the regulatory process and anticipate filing our final prospectus in the coming days."

As part of the asset purchase agreement, Saga Metals will grant a gross overriding royalty of 2% on the project to the vendors.

The closure of the transaction is subject to customary conditions and approvals.