CAT Strategic enters MOU to acquire Quebec REE project

Executive Summary

• CAT Strategic Metals Corp. entered into a binding Memorandum of Understanding (MOU) to earn an 80% interest in a district-scale Rare Earth Element (REE) exploration project in Quebec, Canada.
• The transaction involves an exclusive option to earn the interest over a five-year term, with significant upfront share issuance and cash payments to vendors.
• The project consists of 95 claims (approx. 4,330 hectares) containing historical anomalous REE samples and three major alkaline intrusions, with exploration planned to commence in summer 2026.

Key Details

• Transaction Structure: Binding MOU granting exclusive rights to earn an undivided 80% legal and beneficial interest in the project over a five-year option term.
• Upfront Consideration: Issuance of 33 million common shares of CAT to the vendors.
• Cash Payments: Anniversary payments totaling $175,000 per year for three years, payable in cash, common shares, or a combination at CAT's election.
• Exploration Commitment: Minimum aggregate exploration expenditures of $500,000 over the option term (no minimum per year).
• Earn-In Conditions: Upon satisfaction, CAT earns 80%; the remaining 20% is carried through to a production decision.
• Additional Bonuses: One-time cash bonus of $500,000 payable upon completion of a bankable feasibility study.
• Royalty: A total 3.0% net smelter return (NSR) royalty, subject to partial buyback rights in favor of CAT.
• Project Location: Approximately 80 kilometers east of Kuujjuaq, Quebec.
• Land Package: 95 contiguous claims totaling approximately 4,330 hectares.
• Historical Data: The project includes the "Surivvik" mineral showing, where a grab sample returned 2,349.49 ppm REE, 2.97% P2O5, 392 ppm Zn, 53 ppm Th, and 1,442 ppm Sr.
• Geology: Interpreted as an ultramafic to mafic intrusion associated with a hyperalkaline complex, enriched in magnetite, apatite, allanite, xenotime, and REE-rich minerals. The property also encompasses three major alkaline intrusions (syenite to monzodorite).
• Exploration Status: Grassroots stage; no exploration work conducted since the 2011 discovery.
• Future Plans: CAT intends to commence a phased exploration program (geological mapping, sampling, geophysics) as early as summer 2026, pending regulatory approvals.
• Regulatory Status: Transaction is subject to customary regulatory approvals; will convert to a definitive option agreement upon approval.

Notable Quotes

• None explicitly quoted in the text, though the company states: "The binding MOU represents a significant consolidation of a large and contiguous mineral claim package and provides CAT with control over an emerging REE discovery within a highly prospective geological district."