CAT Strategic Metals Announces Plan to Spin off South Preston Uranium Project Into Newly Formed Publicly Traded Company - Seite 2

Transaction Details

Through this transaction, CAT shareholders are expected to receive a pro rata distribution of shares of UIC stock, which is intended, subject to confirmation by CAT's legal and tax advisors, to be tax-free for both CAT and its shareholders with respect to Canadian income tax purposes. The exact number of shares to be distributed to CAT Shareholders of Record will be determined prior to closing, along with the specific transaction structure. Current plans aim for a 1-for-1 share distribution, whereby each CAT shareholder will receive one new UIC share for each CAT share owned on the record date, which is expected to be announced in the coming weeks, with the completed transaction anticipated to occur by the end of the third quarter, or early in the fourth quarter.

CAT is dedicated to optimizing strong capital allocation strategies for each of its projects, in line with their respective long-term goals. Further details pertaining to the transaction, such as each companies' respective capital structures and capital requirements, governance, and other elements, will be announced at the appropriate time.

Although CAT expects to complete the spin-off within the aforementioned time frame, this transaction is subject to all customary conditions including the final approval of the CAT Board of Directors, receipt of a tax opinion, the filing and effectiveness of disclosure statements, and obtaining all necessary regulatory approvals.

South Preston Uranium Project

Subsequent to the spin-off, exploration activities on the property are expected to significantly increase, as historical and recent exploration in the surrounding area have outlined very promising features. So far, all geophysical survey results are very encouraging. The exploration activities to date have confirmed the location of a major conductive zone beneath a drainage system that follows a very strong NE-trending structural lineament. Similar lineaments are closely associated with uranium deposits in much of the Athabasca Basin, and management‘s view of the uranium potential of the CAT project is very high.

For example, airborne geophysical surveying identified areas of high background radioactivity in western areas of the property and NE-striking conductors were located to the north and trending towards the CAT property. On-going exploration by Azincourt Energy Corp. ("Azincourt") has identified conductive corridors which have recently been drilled and have been shown to contain sheared, graphitic basement rocks that are commonly the host for significant uranium deposits elsewhere in the Athabasca Basin. CAT's airborne EM and mag survey in the ‘Western Block' identified a series of NE-trending conductors, some of which appear to be continuous with the graphitic conductors currently being drilled by Azincourt on its adjacent property to the north. Another zone of interest surveyed as the ‘Eastern Block' is located in the general vicinity of surface uranium mineralization reported by Denison Mines in 1970. Results from the biogeochemical sampling in all analyzed CAT areas were extremely encouraging with uranium values reported to be 187 ppm with a mean value of 7.9 ppm and a median of 3.27 ppm.