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CAT Strategic Metals Corporation (CSE: CAT,OTC:CATTF) (OTC Pink: CATTF) (FSE: 8CHA) ("CAT" or the "Company") is pleased to announce the closing of a first tranche of its previously announced non-brokered private placement financing for gross proceeds of $300,000 (the "Offering"). In connection with the first tranche closing of the Offering, the Company issued 30,000,000 units (the "Units") at a price of $0.01 per Unit.
Each Unit is comprised of one common share (a "Common Share") in the capital of the Company and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable into one Common Share at a price of $0.05 per share until 4:00 p.m. (Pacific Time) on November 21, 2030. The Warrants are currently listed on the Canadian Securities Exchange under the trading symbol "CAT.WT".
No finder's fee was paid in this Offering. All securities issued in connection with the Offering will be subject to a statutory hold period of four months and one day from the date of issuance, as well as a concurrent resale restriction under Canadian Securities Exchange (the "CSE") policies requiring a CSE-prescribed legend restricting trading until the expiry of the hold period. Net proceeds from the Offering will be used by the Company for general working capital purposes.
An insider from the Company subscribed indirectly for a total of 900,000 Units under the Offering. A subscription by an insider of the Company is considered to be a "related party transaction" of the Company within the meaning of Exchange Policy 5.9 - Protection of Minority Security Holders in Special Transactions and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is exempt from the formal valuation requirement in Section 5.4 of MI 61-101 in reliance on Section 5.5(a) of MI 61-101 as the fair market value of the Offering, insofar as it involves the insider, is not more than 25% of the Company's market capitalization. Additionally, the Company is exempt from the minority shareholder approval requirement in Section 5.6 of MI 61-101 in reliance on Section 5.7(a) as the fair market value of the Offering, insofar as it involves the insider, is not more than 25% of the Company's market capitalization. The Company did not file a material change report more than 21 days before the closing of the Offering because the details of the insider participation were not finalized until closer to closing of the Offering and the Company wished to close the Offering as soon as practicable for sound business reasons.
The Company is also pleased to announce that due to strong market demand, it has elected to increase the size of its previously announced non-brokered private placement to accommodate additional investor interest. The Company now plans to issue up to approximately 15,000,000 Units for additional gross proceeds of $150,000.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall 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 State in which such offer, solicitation or sale would be unlawful.
About CAT Strategic Metals Corporation:
CAT Strategic Metals Corporation is a Canadian based mineral exploration company focused on the acquisition and derisking of overlooked projects situated in well-established geological districts in North America. The Company is specially focused on minerals which are considered highly strategic from a monetary as well as global infrastructure and energy point of view. CAT's shares trade on the Canadian Securities Exchange (CSE) under the trading symbol "CAT", on the OTCMarkets.com under the trading symbol "CATTF", and on the Frankfurt Stock Exchange under the symbol "8CHA".
On behalf of the Board of Directors
Robert Rosner
Chairman, President & CEO
Further information regarding the Company can be found on SEDAR+ at visiting the Company's website www.sedarplus.ca, by 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; the use of proceeds of the Offering; and the closing of additional tranches of the Offering. 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. 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.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/293531
