CAT Strategic Corporate Financing Update

Rhea-AI Summary

CAT Strategic Metals Corporation (CSE:CAT, OTC PINK:CATTF) announced a non-brokered private placement of 20 million Units at $0.03 each, utilizing proceeds for exploration and working capital. Each Unit includes one common share and one warrant, granting purchase rights at $0.05 for 36 months. Additionally, CAT secured a CAD$600,000 loan with an 8% interest rate, convertible into Units. The loan supports ongoing corporate actions. All securities are subject to a four-month holding period and are unregistered in the U.S.

Positive

• Planned issuance of 20 million Units at a price of $0.03 each, supporting future exploration and capital needs.
• Secured a CAD$600,000 loan at 8% interest, enhancing liquidity and funding capabilities.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / October 28, 2022 / CAT Strategic Metals Corporation (CSE:CAT, OTC PINK:CATTF, FRA:8CH) ("CAT" or the "Company") announces that it intends to complete a non-brokered private placement by way of issuance of 20,000,000 Units at price of $0.03 per Unit (the "Private Placement"). Each Unit is comprised of one (1) common share (each a "Common Share" or the "Common Shares") and one (1) common share purchase warrant (each a "Warrant"), whereas each Warrant entitles the lender to purchase an additional common share (a "Warrant Share") at an exercise price of $0.05 per Warrant Share for a period of 36 months following the Warrant exercise date. The Company intends to use the proceeds of the Private Placement for exploration expenses and general working capital.

All securities issued pursuant to the Private Placement will be subject to a four-month-and-one day statutory hold period in accordance with applicable securities law. The securities being referred to in this news release have not been, nor will they be, registered under the United States (U.S.) Securities Act of 1933, as amended, and may not be offered or sold in the U.S. or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The Company also announces that it has entered into a senior secured loan agreement (the "Loan Agreement") with an arm's length private lender in the aggregate principal amount of up to CAD$600,000 (the "Principal Loan Amount"). The Loan bears interest at 8% per annum compounded and calculated monthly, to accrue quarterly, both before and after default; said interest being accumulated quarterly to be paid as a single balloon payment to be added to the principal at 18 months from the date hereof of the Loan (the "Maturity Date"). Prior the Maturity Date, the lender has the right to convert all, but not less than $50,000, of the Principal Loan Amount and interest either partially or totally into units of the Company (each a "Unit" or the "Units") at a price of $0.05 per Unit.

Each Unit is comprised of one (1) common share (each a "Common Share" or the "Common Shares") and one (1) common share purchase warrant (each a "Warrant"), whereas each Warrant entitles the lender to purchase an additional common share (a "Warrant Share") at an exercise price of $0.05 per Warrant Share for a period of 36 months following the Warrant exercise date.

The General Security Agreement provides the private lender a charge over all of the Company's assets as general and continuing collateral security for the payment and fulfillment of the requisite obligations, subject to customary permitted encumbrances. The Company intends to use the Principal Loan Amount for ongoing and upcoming corporate actions and general working capital.

About CAT Strategic Metals Corporation (CAT)

CAT Strategic Metals' corporate strategy, as reflected in its overall Mission Statement, is to source, identify, acquire and advance property interests located in mineral districts proven to have world-class potential, primarily for Uranium, Lithium, Gold and Copper. In addition to the priority South Preston Uranium Project, CAT is focused on advancing the Burntland Project located in New Brunswick, Canada; the Gold Jackpot strategic metals property located NE of Elko, Nevada, USA; and the Kamativi Lithium Project in Matabeleland North Province, Zimbabwe Africa. CAT's shares trade on the Canadian Securities Exchange (CSE) under the trading symbol "CAT", the OTC under the symbol CATTF and on the Frankfurt Stock Exchange under the symbol "8CH".

ON BEHALF OF THE BOARD

Robert Rosner
Chairman, President & CEO

Further information regarding the Company can be found on SEDAR at www.SEDAR.com, by visiting the Company's website www.catstrategic.com or by contacting the Company directly at (604) 674-3145.

Neither Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

We seek safe harbour.

SOURCE: CAT Strategic Metals Corporation

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https://www.accesswire.com/722958/CAT-Strategic-Corporate-Financing-Update

FAQ

What is the private placement of CAT Strategic Metals Corporation?

CAT Strategic Metals Corporation plans to conduct a non-brokered private placement of 20 million Units priced at $0.03 each.

What will the proceeds from the private placement be used for?

The proceeds will be used for exploration expenses and general working capital.

What is the interest rate on CAT's secured loan?

The secured loan from a private lender bears an interest rate of 8% per annum.

Are the securities from the private placement registered in the U.S.?

No, the securities are not registered under the U.S. Securities Act of 1933 and cannot be sold in the U.S.