Cat Strategic Metals Requests Trading Halt and Provides Update on Contemplated RTO Transaction and Offtake Agreement
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CAT STRATEGIC METALS REQUESTS TRADING HALT AND PROVIDES UPDATE ON CONTEMPLATED RTO TRANSACTION AND OFFTAKE AGREEMENT
Vancouver, BC May 6, 2019 – Canadian development company, CAT Strategic Metals Corp. (CSE – CAT) (“CAT” or the “Company”) announces that it has requested a trading halt from the regulators with respect to the contemplated reverse take-over transaction (the “Transaction”) with Zimbabwe Lithium Company (Mauritius) Limited (“ZIM”) for the exploitation of the the Kamativi Tailings Lithium Project (the “Project”), as CAT and ZIM have agreed to move forward with the completion of the Transaction, such Transaction constituting a Fundamental Change as per Canadian Securities Exchange (the “CSE”) Policies, requiring a trading halt of the Company’s securities. The Company expects to distribute to its shareholders the information circular and related listing statement describing the Transaction within the next calendar month. Trading in the Company’s shares will resume upon completion of the Transaction. Completion of the Transaction is subject, among other things, to shareholders and CSE approval.
In addition, the Company announces that the due diligence for Term Sheet signed between Transamine Trading S.A. (“Transamine”) and the Kamativi Tailings Company (Pvt) Ltd (“KTC”) for a USD $9.5 Million finance and off-take facility for concentrate produced from the Kamativi Tailings Lithium Project (the “Project”) has been suspended. KTC and its shareholders have immediately begun re-engaging previously interested off-take partners for the Project. CAT’s local Zimbabwean partner (http://tiny.cc/pjil5y) holds a 60% equity stake in the Kamativi Tailings Company which is a Joint Venture with the remaining 40% of the equity being held by Kamativi Tin Mines (Pvt) Ltd.
CAT has been advised that Transamine was satisfied with most aspects of the due diligence process that had been completed. However, it was further determined by Transamine that if a deal was concluded, the current shareholding structure may not be satisfactory as currently proposed and could potentially expose Transamine to undesired sanctions, scrutiny from OFAC and other potential sanction entities.
The Project is located outside the village of Kamativi in Matabeleland North Province, Zimbabwe. MSA of South-Africa updated in September 2018 the NI-43-101 report on the Kamativi project and have estimated a 26.32 Mt Indicated resource grading 0,58% Li2O and 0,30 Mt Inferred resource grading 0,62 Li2O with 70% being spodumene. The tailings deposit is associated with the disused Kamativi tin mine and is located approximately 185 kilometres east-south-east of Victoria Falls.
Furthermore, the Company announces that its financial statements for the financial year ended December 31, 2018 will be filed late due to circumstances related to the Transaction that have delayed the audit process. The Company expects to file said financial statements along with the information circular and listing statement with respect to the contemplated Transaction.
Alain Moreau, a “qualified person” as defined by NI 43-101 – Standards of Disclosure for Mineral Projects has approved the scientific and technical disclosure in this press release.
ON BEHALF OF THE BOARD
Richard Groome
Chairman and Interim President and CEO
Further information regarding the Company can be found on SEDAR at www.SEDAR.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 production 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 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