CAT Strategic Metals Announces Non-Brokered Private Placement to Raise up to CDN$1.5 Million, for Which Firm Commitments of CDN$900k Have Been Obtained

Rhea-AI Summary

CAT Strategic Metals Corporation (CSE:CAT)(OTC PINK:CATTF) plans to raise up to CDN$1.5 million through a non-brokered private placement of 50 million units at CDN$0.03 per unit. Firm commitments of CDN$900,000 have already been secured. Each unit comprises one common share and one non-transferable warrant, exercisable at CDN$0.05 for 36 months. Proceeds will fund exploration of CAT's properties, particularly the South Preston Uranium Property, and for general working capital. Insider participation in the placement may qualify as a related party transaction but is expected to be exempt from formal requirements.

Positive

• Firm commitments of CDN$900,000 already secured, indicating strong investor interest.
• Proceeds will be directed towards exploration activities, potentially enhancing resource evaluations.

Negative

• Private placement dilutes existing shareholders due to the issuance of new shares.
• The reliance on insider participation raises concerns about governance and transparency.

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC / ACCESSWIRE / April 27, 2022 / CAT Strategic Metals Corporation (CSE:CAT)(OTC PINK:CATTF)(FRA:8CHA) ("CAT" or the "Company") announces that it intends to raise up to CDN$1,500,000 by way of a non-brokered private placement of 50,000,000 units (the "Units"), at a price of CDN$0.03 per Unit (the "Private Placement"), for which firm commitments of CDN$900,000 have been obtained. Each Unit will be comprised of one common share in the capital of the Company (a "Share") and one whole non-transferable share purchase warrant (a "Warrant"). Each whole Warrant will be exercisable to acquire one Share at an exercise price of CDN$0.05 per Share for a period of 36 months from the date of issuance.

The securities issued pursuant to the Private Placement, and any Shares that may be issuable on exercise of any such securities, will be subject to a statutory hold period expiring four months and one day from the date of issuance of such securities.

CAT intends to use the net proceeds of the Private Placement for further exploration of CAT's properties, with a primary focus on the South Preston Uranium Property, and for general working capital purposes.

Certain insiders of the Company may acquire Units in the Private Placement. Any participation by insiders in the Private Placement would constitute a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). However, the Company expects such participation would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the Units subscribed for by the insiders, nor the consideration for the Units paid by such insiders, would exceed 25% of the Company's market capitalization.

The Company may pay finder's fees on the Private Placement, subject to compliance with applicable securities legislation.

About CAT Strategic Metals Corporation:

CAT's Mission Statement and corporate strategy is to source, identify, acquire and advance property interests located in mineral districts proven to have world class potential, primarily for gold and copper. In addition to the South Preston Uranium Project, CAT's Burntland Project is focused on the exploration and development of several targets located Northeast of Saint Quentin in the county of Restigouche, New Brunswick, Canada, and The Gold Jackpot strategic metals property with multiple targets for gold-silver, copper, and tellurium property located NE of Elko, Nevada, in the Pequop gold-copper Trend. CAT's shares trade on the Canadian Securities Exchange under the trading symbol "CAT", on the OTC under the trading 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 and by visiting the Company's website at www.catstrategic.com or by contacting the Company directly at (604) 674-3145.

This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Particular risks applicable to this press release include risks associated with planned production, including the ability of the company to achieve its targeted exploration outline due to regulatory, technical or economic factors. In addition, there are risks associated with estimates of resources, and there is no guarantee that a resource will be found or have demonstrated economic viability as necessary to be classified as a reserve. There is no guarantee that additional exploration work will result in significant increases to resource estimates

Certain information contained in this news release constitutes "forward-looking information" or "forward-looking statements" (collectively, "forward- looking information"). Without limiting the foregoing, such forward-looking information includes statements regarding the process and completion of the Offering, the use of proceeds of the Offering and any statements regarding the Company's business plans, expectations and objectives. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking information. Forward looking information should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking information is based on information available at the time and/or the Company management's good faith belief with respect to future events and is subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. For additional information with respect to these and other factors and assumptions underlying the forward-looking information made in this news release, see the Company's most recent Management's Discussion and Analysis and financial statements and other documents filed by the Company with the Canadian securities commissions and the discussion of risk factors set out therein. Such documents are available at www.sedar.com under the Company's profile and on the Company's website, www.catstrategic.com. The forward-looking information set forth herein reflects the Company's expectations as at the date of this news release and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

SOURCE: CAT Strategic Metals Corporation

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FAQ

How much is CAT Strategic Metals looking to raise?

CAT Strategic Metals aims to raise up to CDN$1.5 million through a private placement.

What is the price per unit in the private placement by CAT Strategic Metals?

The price per unit in the private placement is CDN$0.03.

What will CAT Strategic Metals use the proceeds from the private placement for?

The proceeds will primarily be used for further exploration of CAT's properties, especially the South Preston Uranium Property.

What is the exercise price for warrants issued in the private placement?

The exercise price for the warrants is CDN$0.05 per share.

What are the potential risks mentioned in the CAT Strategic Metals press release?

Risks include regulatory and technical factors that could affect planned production and exploration outcomes.