Business
CAT Strategic Metals Successfully Restructures Loan Agreement to Facilitate Gold Jackpot Project Financing and South Preston Spin-Off
VANCOUVER, BC / ACCESSWIRE / July 20, 2023 / CAT Strategic Metals Corporation (CSE:CAT) (OTC PINK:CATTF) (FRA:8CH) ("CAT" or the "Company") is pleased to announ
About this update from Cat Strategic Metals Corporation
[{"type":"text","content":" VANCOUVER, BC / ACCESSWIRE / July 20, 2023 / CAT Strategic Metals Corporation (CSE:CAT) (OTC PINK:CATTF) (FRA:8CH) (\"CAT\" or the \"Company\") is pleased to announce that it has concluded a restructuring of the Senior Secured Loan Agreement (the \"Agreement\") that was entered into on September 29,2022 with Komodo Holdings (Alberta) ULC (\"Komodo\"). The restructuring of the Agreement was negotiated in good faith in order to remove or alter certain terms and conditions in order to more easily facilitate a financing of the Company and the spin-off of CAT's South Preston Uranium Project. The negotiated changes to the Agreement are as follows: The amended Agreement altogether removes the requirement for a General Security Agreement (the \"GSA\") which provided Komodo with a charge over all of the Company's assets. Komodo will proceed with the immediate release of the Security with the Personal Property Registry of British Columbia, and has agreed to sign and deliver, or cause to be signed and delivered to CAT all such further and other discharges, documents, certificates, agreements and written instruments to discharge the Security. The term of the loan, previously due on March 29, 2024 has been extended to December 31, 2025. The Agreement provided for the lender to have the ability to convert the loan amount, or any portion thereof, at any time into units of the Company at a price of $0.05 per unit, with each unit being comprised of one common share and one common share purchase warrant. Each warrant then entitled the lender to purchase an additional common share at an exercise price of $0.05 for a period of 36 months following the exercise date. The amended agreement reduces the unit exercise price from $0.05 to $0.032, increases the warrant exercise price from $0.05 to $0.06, and reduces the warrant exercise period from 36 months down to 18 months. CAT CEO, Robert Rosner, stated that \"Renegotiating the terms of the debt instrument was a crucial and necessary step in the Company's ability to secure a much needed financing. With the GSA removed from the equation, we have had very encouraging discussions with a group of financiers who are quite keen on our Gold Jackpot property and the potential for a lithium discovery such as has been reported by Surge Battery Metals on their Nevada North Lithium Project, our neighbour just 1 m...