CAT Strategic to acquire remaining 49% of Burntland

Executive Summary

• CAT Strategic Metals Corp. has entered into an agreement to acquire the remaining 49% minority interest in its Burntland porphyry-skarn copper-silver project in New Brunswick, achieving 100% ownership.
• The acquisition is funded via the issuance of $562,500 in senior secured promissory notes bearing 6% interest, maturing March 17, 2028, secured by the earned-in interest.
• Concurrently, the company announced a private placement offering of up to 30 million units at $0.01 per unit, targeting gross proceeds of up to $300,000 for general working capital.

Key Details

• Acquisition Structure: CAT Strategic Metals acquires the remaining 49% interest from arm's-length private vendors, consolidating 100% ownership of the Burntland project.
• Consideration for Acquisition:
  • Issuance of $562,500 principal amount of senior secured promissory notes.
  • Interest rate: 6% per annum, compounded monthly, accrued quarterly.
  • Payment terms: Single balloon payment at maturity.
  • Maturity Date: March 17, 2028.
  • Security: General security agreement over the 49% earned-in interest in the claims.
• Private Placement Terms:
  • Gross Proceeds: Up to $300,000.
  • Units Offered: Up to 30 million units.
  • Price: $0.01 per unit.
  • Unit Composition: One common share and one common share purchase warrant.
  • Warrant Terms: Each warrant allows acquisition of one additional common share at $0.05 per share.
  • Warrant Expiry: November 21, 2030.
  • Ticker: CAT.WT (trading on Canadian Securities Exchange upon closing).
  • Use of Proceeds: General working capital.
  • Expected Closing: On or about April 3, 2026.
  • Insider Participation: Directors and officers may participate; expected to be treated as a related party transaction under MI 61-101, relying on exemptions for minority shareholder approval and formal valuation.
• Project Overview (Burntland):
  • Location: Northern New Brunswick, Canada.
  • Size: Approximately 2,781 hectares.
  • Geology: Copper-silver-gold carbonate replacement and skarn system in the White Head formation, associated with Devonian intrusions.
  • Strategic Position: Surrounded by claims held by Puma Exploration.
  • Historical Exploration: High-grade copper-silver lenses identified by Teck, Noranda, and Brunswick Mining.
  • Modern Exploration (CAT):
    • 2021 airborne magnetic survey defined six priority targets.
    • Diamond drilling totaling 1,416 metres.
    • Notable Drill Results:
      • 118.84 metres grading 0.42% copper equivalent (CuEq), including 58.62 metres at 0.76% CuEq.
      • 7.04 metres grading 0.92% CuEq.
    • Interpretation: Mineralization is distal to an intrusive source, suggesting potential for stronger mineralization closer to the core.
• Regulatory Status: Transaction subject to customary regulatory approvals and CSE approval for the private placement.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.