I have been calling my top pick for this month, CAT Strategic Metals (OTCMKTS: CATTF), a “triple play” small cap stock, because it has exploration assets involving gold, silver, and lithium. Well now I’m going to have to call it a quadruple play, because this week it entered a major agreement to acquire uranium interests in Canada.
The company issued a press release on Tuesday with the title CAT Strategic Metals to Acquire District-Scale Uranium Asset in Canada’s Western Athabasca Basin, 50+KM Claim Border With Neighbouring Azincourt Energy. The release stated:
CAT Strategic Metals Corporation (CSE:CAT) (“CAT” or the “Company”) is pleased to announce that it has entered into a binding letter agreement with arm’s-length parties to acquire a privately-held corporation that owns a 100% undivided interest in the South Preston Uranium Property (“South Preston”) located in Saskatchewan, Canada.
“We are tremendously excited to share today’s announcement. The South Preston Uranium Property provides our shareholders with a district-scale footprint in a world-class uranium basin that is globally known for hosting some of the highest-grade uranium deposits. The Western Athabasca Basin has quickly become the address for new uranium discoveries, including large deposits found within the region by NexGen Energy and Fission Uranium. Recent market interest in neighbouring uranium exploration junior, Azincourt Energy, bodes well for our large adjacent project and speaks to the exploration potential of South Preston in what we believe is a very high-impact and opportunistic acquisition for our shareholders,” stated Robert Rosner, CAT’s Chairman and CEO.
The South Preston Uranium Property
The 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.
CAT’s terms for this deal are 27.5 million shares of stock and $50,000. Here is a map of the property area.
Notice how CAT’s South Preston Uranium Project is sitting next to Azincourt Energy’s property, which is getting attention. That company is doing a private placement to fund its activities at worse terms than the current offering being done by CAT and without the other properties that CAT has interests in! What is getting people’s attention about these deals is the fact that they are “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.”
This news helped to drive CAT’s stock up on Tuesday. I’m looking for those gains to be digested for another move up. Check out the stock chart.
Disclosure: Mike Swanson is planning on investing in a private placement in CAT Strategic Metals in the coming weeks. Such shares would be restricted with a four-month trading hold period on them. Because it is a small cap stock with a market cap of less than $100 million he has put himself on a trading blackout on it and will not buy or sell a share of them on any exchange for at least 30-days from the date of this post. Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for CAT Strategic Metals. This third party paid Timingwallstreet Inc., $10,000 to produce and disseminate this and other similar articles and send traffic to them through paid advertising online campaigns for 30 days beginning February 1, 2021. This compensation should be viewed as a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. For more on trading risks read our policy statement by clicking here.