VANCOUVER, BC / ACCESSWIRE / February 17, 2021 / CAT Strategic Metals Corporation (CSE:CAT) ("CAT" or the "Company") is pleased to announce that it has entered into an arm's-length property purchase agreement whereby CAT will acquire~7,716 ha (~19,058 acres) of well-situated exploration ground that will result in the significant expansion of its South Preston Uranium Property ("South Preston"), located in Saskatchewan's Athabasca Basin (see also CAT news release, CAT Strategic Metals to Acquire District-Scale Uranium Asset in Canada's Western Athabasca Basin, 50+KM Claim Border With Neighbouring Azincourt Energy, dated February 16, 2021).
"CAT Strategic is thrilled to have secured a large property expansion for our South Preston Uranium Property onbehalf of our shareholders. Our unique deal structuring defers most of the consideration into an augmented uranium production royalty, which exemplifies confidence by the property vendor in the discovery potential of the southwest Athabasca Basin, and specifically these new property additions. When this additional property is combined with our existing 50km+ continuous claim border alongside Azincourt Energy, CAT Strategic has now positioned itself to become a leading uranium explorer in one of the world's most important uranium jurisdictions. Like our adjacentproperty neighbours Orano, Azincourt and Nexgen, CAT Strategic (CSE:CAT) has joined an enviable list of high-quality exploration opportunities for uranium investors to participate in," noted Robert Rosner, CAT's Chairman and CEO.
Expansion of the South Preston Uranium Property
The expansion of CAT's South Preston Uranium Property has been achieved through additional property covering both a significant area that ties on to the prior eastern limit of the South Preston Uranium Project (the "East Expansion"), and an additional area that covers shallow in-basin property extending the project in a northerly direction from its current limit (the "North Expansion"). The East Expansion covers ~5,278.5 ha (~13,038 acres) and extends the South Preston Uranium Property up to a substantial shared claim boundary with NexGen Energy Ltd. The North Expansion covers ~2,437 ha (~6,021 acres) and delivers additional in-basin exploration optionality for CAT Strategic.
Together, the East Expansion and North Expansion result in the South Preston Uranium Project increasing in size by a total of ~7,716 ha (~19,059 acres), from ~20,679 ha to ~29,395 ha (~51,077 acres to ~70,136 acres), being well over a one-third expansion.
Figure 1: South Preston Uranium Property - Expansion Areas
Upon closing, the additional property will be acquired from an arm's-length property vendor in exchange for a 3% production sales royalty (of which 1% may be acquired by CAT for CAD $2million) and an upfront agreement fee of $25,000.
The South Preston Uranium Property
CAT Strategic's district-scale South Preston Uranium Property is located in the southwest area of Canada's Athabasca Basin, which is known to host some of the world's highest-grade uranium deposits. Recent discoveries in the region include the Arrow uranium deposit discovered by NexGen Energy Ltd. and the Triple R (PLS) uranium deposit being advanced by Fission Uranium Corp.
Figure 2: Map of the South Preston Uranium Property (February 17, 2021)
The South Preston Uranium Property represents a premier uranium exploration project now encompassing approx. 28,395 ha (~70,136 acres) across numerous mineral dispositions. Among other attributes, the property is viewed as prospectively hosting the extension of a priority uranium exploration corridor extending from NexGen Energy Ltd.'s Rook-1 Project through Azincourt Energy Corp.'s adjacent East Preston Uranium Project and onto CAT's new South Preston Uranium Property. The project also hosts a significant shared property border with NexGen Energy Ltd. along a newly expanded eastern border.
Shown in Figure 2 above, the South Preston Uranium Project delivers more than 50km of contiguous claim border with Azincourt Energy Corp., more than 18.5km of continuous project boundary with Orano (a leading global uranium producer), and 10km of adjacent property border with NexGen Energy Ltd.
As previously disclosed, and upon the closing of recently announced transactions, the Company intends to conduct certain exploration work that will advance its near-term objective to define and test uranium drill targets at the South Preston Uranium Property.
About CAT Strategic Metals Corporation:
CAT Strategic Metals Corporation is a Canadian based mineral exploration company focused on the acquisition and de risking of overlooked projects situated in well established World Class 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", and on the Frankfurt Stock Exchange under the symbol "8CH".
ON BEHALF OF THE BOARD
Chairman, President & CEO
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.
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