CAT Strategic Metals Enters into Exclusive Option Agreement to Acquire up to 100% Interest in Burntland Mineral Property
NEWS RELEASE
CSE: CAT
1015 –789 West Pender Street, Vancouver, BC V6C 1H2
CAT STRATEGIC METALS ENTERS INTO EXCLUSIVE OPTION AGREEMENT TO
ACQUIRE UP TO 100% INTEREST IN BURNTLAND MINERAL PROPERTY
Vancouver, BC September 17, 2020 CAT Strategic Metals Corporation (CSE: CAT) (“CAT” or
the "Company") announces that it has entered into an option agreement (the “Agreement”)
pursuant to an arm’s length negotiation with the vendors (the “Vendors”) dated September 10,
2020. The Agreement gives the Company the exclusive right to acquire up to a 100% undivided
ownership in the Burntland mineral property (the “Property”) over a 4 year period from the
closing date. The Property is comprised of ~1,200 hectares located approximately 60 Km
Northeast of Saint Quentin in the county of Restigouche, New Brunswick, Canada.
As part of the Agreement, the Company will issue 25,000,000 common shares to the Vendors
and incur exploration and development expenditures on the Property necessary to maintain the
minerals claims in good standing during the option period of 4 years.
The Company will also make payments totalling $1,000,000 to the Vendors as set forth below.
The Company retains the right to pay up to half of each scheduled payment in common shares
of the Company, such calculation based on the Volume Weighted Average Price (VWAP) of the
Company’s shares over the previous 20 trading day period.
1. $250,000 due 12 months from the Closing Date;
2. $250,000 due 24 months from the Closing Date to acquire an earned-in interest of 51% (the
First Option);
3. $250,000 due 36 months from the Closing Date to acquire an additional earned-in interest
of 24%, for a total 75% interest in the Property (the Second Option); and
4. $250,000 due 48 months from the Closing Date to acquire an additional earned-in interest
of 25%, for a total 100% interest in the Property (the Third Option)
In addition to the foregoing, the Company will also grant to the Property’s Vendors a Net Smelter
Return Royalty (NSR) equal to 2.0% resulting from the extraction and production of any mineral
products on the Property.
The Company may withdraw from the Option Agreement at any time upon providing a written
notice to the Vendors at least 120 days prior to the expiration of the mineral claims comprising
the Property. This transaction is subject to regulatory approval.
• The Burntland Property
Figure 1: Map of Burntland property
Grab & chip sample results from a recently excavated 90-meter-long trench (2020 BRNT 1)
exposed an interval of ~10 meters of mineralized, veined, hornfelsed/skarnified argillite -
carbonate (Whitehead Formation), and ~2-4-meter porphyry dykes that transition into laterally
extensive porphyry. This porphyry is tentatively equated with the Mackenzie Gulch Porphyry.
The latter Porphyry is related to the Legacy Skarn deposit (~4.5 km North) discovered by
Copperfields M. Co. in the 1970’s. Assay results from grab samples in the altered-sediment-
porphyry dyke portion of trench 2020 BRNT 1 on the Burntland property returned an average of
1.67% Cu, 39.3 g/t Ag (n=27)
Figure 2: Location of 2020 BRNT 1 trench (star) with respect to the Burntland Property. Also shown as
representative samples from several areas of the trench, showing a gradation from skarnified wallrocks into laterally
extensive porphyritic rocks. Note significant malachite staining as well as fresh chalcopyrite.
Figure 3: Burntland trench assay results and locations along the 2020 BRNT 1 trench, showing well distributed
mineralization across the trenching area.
Ag Cu
Sample # G/t %
E6538003 100 1.71
E6538005 31 3.15
E6538006 192 5.58
E6538010 18 2.01
E6538011 118 6.20
E6538012 220 16.30
E6538014 72 3.13
E6538015 19 1.71
Figure: Selected best Ag & Cu results from 2020 BRNT 1 trench
Figure 4: Assay results with sample locations and Au, Ag, Cu, and Zn results.
Robert Rosner, Chairman and CEO of CAT, stated: “Our initial site visits were highly constructive
and encouraging. The Copper and Silver results so far illustrate the type of values the Burntland
Property could continue to deliver. The Company is also looking forward to testing numerous
geophysical targets that have been identified.”
Analyses were completed at AGAT Laboratories’ Mississauga Ontario facility. Gold (Au) results
were determined by Fire Assay with an ICP-OES finish. Silver (Ag) Copper (Cu), and Zinc (Zn)
results were determined by Sodium Peroxide Fusion with an ICP-OES/ICP-MS finish.
Mr. Kelly Malcolm, P.Geo (Ontario), is the qualified person as defined by National Instrument
43-101 who has examined and reviewed the recent NI 43-101 report and geological information
available from public sources related to the property, and is responsible for approving the
technical contents of this press release. The Qualified Person has not completed sufficient work
to verify the historic information on the Property, particularly in regard to the neighbouring Legacy
Skarn deposit.
ON BEHALF OF THE BOARD
Robert Rosner
Chairman, President & 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