SAGA Metals has signed an agreement with Orion Iron Ore for the sale of its North Wind property in Labrador, Canada.

Under the agreement, the company will receive four million common shares of Orion and a 2% gross overriding royalty (GORR).

The North Wind Iron Ore Property is located approximately 16km south-west of Schefferville in Quebec.

Spanning 6,375 hectares (ha) and covering 255 claim blocks, the site contains mineralisation over a 4km north-west-south-east trend.

According to data from 2013, the project includes historical resource estimates compliant with Canada’s NI 43-101 standards.

Fieldwork has identified zones of high-grade iron ore, with iron oxide concentrations in grab samples reaching up to 84.57%.

Magnetite-rich taconite ore has also been confirmed, along with hematite, limonite and goethite.

SAGA Metals CEO and director Mike Stier said: “We believe every asset in our portfolio holds significant potential in the critical minerals space. As we have developed our project pipeline over the past several years, we have consistently demonstrated our ability to create shareholder value through non-dilutive opportunities, including our previous dealings with Rio Tinto.

“The sale of the North Wind Iron Ore Project continues that disciplined approach. 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.

“This transaction reflects our ongoing commitment to unlocking value for shareholders in a thoughtful and strategic manner.”

Orion Iron Ore is an independent iron ore explorer focused on acquiring and developing iron assets in the Labrador Trough. Its existing operations include two properties, the H2 property near Schefferville and the Lac Le Fer property in north-eastern Quebec.

The H2 property covers 11,425ha in Labrador, where early stage exploration is permitted, and features several high-grade iron showings.

Lac Le Fer consists of approximately 37,000ha, with surface samples from the site showing high levels of iron oxide across a 20km strike.

In April this year, SAGA Metals agreed to acquire Catalyst Rare Metals to gain full ownership of the royalty-free Wolverine rare earth element project in Canada.