VANCOUVER, Feb. 23, 2012 /PRNewswire/ - Zimtu Capital Corp.
(TSXv: ZC; FSE: ZCT1) (the "Company" or "Zimtu") is pleased to
announce that the Company and three prospecting partners have
signed an agreement with Galaxy Capital Corp. (TSXv: GXY)
("Galaxy") whereby Galaxy can earn a 100%-interest in the Sun
Graphite Property located in southern Quebec.
A summary of the property is as follows:
- Large 4,200 hectare claim block, multiple target areas and
anomalies the longest of which is 3 kilometres, trench and drill
ready.
- Identified by Outokumpu Mines Inc. in exploration for base
metal mineralization, ground work confirmed graphite.
- Road accessible.
For its participation in the transaction, Zimtu
will receive staged cash and share payments from Galaxy as follows:
(i) $3,750 on signing (paid); (ii)
$3,750 and 250,000 common shares on
acceptance by the TSX Venture Exchange ("TSXv"); (iii) $7,500 and 125,000 common shares 14 months from
the date of TSXv acceptance; and (iv) $10,000 and 125,000 common shares 24 months from
the date of TSXv acceptance. Zimtu's three prospecting partners
will each receive cash and share considerations equal to that of
Zimtu. The vendors will collectively retain a 2% Net Milling
Royalty on the Property; 1% of which can be purchased by Galaxy for
C$1 million. During the period which
is 12 months from the date of TSXv acceptance, Galaxy will complete
a minimum of $150,000 of exploration
on the property.
Graphite Market
Global consumption of natural graphite has
increased from ~600,000 in 2000 to 1.2 MM t in 2012. Demand for
graphite has been increasing by approximately 5% per year since
2000 due to the ongoing modernization of China, India
and other emerging economies, resulting in strong demand from
traditional end uses such as the steel and automotive industries.
Graphite also has many important new applications such as
lithium-ion batteries, fuel cells and nuclear and solar power that
have the potential to create significant incremental demand growth.
There is roughly 20 times more graphite required by weight to
produce a lithium-ion battery than there is lithium. Demand for
graphite is expected to rise as electric vehicles and lithium
battery technology are adopted as well as increasing uses in new
technology applications.
Natural graphite comes in several forms: flake,
amorphous and lump. Of the 1.2 million tonnes of graphite produced
annually, approximately 40% is of the most desirable flake type.
China, which produces about 73% of
the world's graphite, is seeing production and export growth
leveling and export taxes and a licensing system have been
instituted. A recent European Commission study regarding the
criticality of 41 different materials to the European economy
included graphite among the 14 materials high in both economic
importance and supply risk (Critical Raw Materials for the EU,
July 2010). Graphite prices have been
increasing in recent months and over the last couple of years
prices for large flake, high purity graphite (+80 mesh, 94-97%C)
have more than doubled.
The Sun Property
The Sun Graphite Property consists of one large
contiguous block of 76 claims totaling approximately 4,200 hectares
located 125 km northwest of the city of Baie-Comeau, Quebec. Access to the property is
excellent with road access via the main lumber haul road which
originates in Baie-Comeau and
Labrieville.
The Sun Property was originally explored by
Outokumpu Mines Inc. in 1998 exploring for base metal
mineralization. An advanced helicopter borne geophysical program
consisting of 2600 km of flight path in the region was performed.
The airborne program located multiple electro-magnetic (EM)
anomalies in the area, outside or coinciding with magnetic
anomalies. In a 15 km long trend, there are multiple target
anomalies and off-set structures, the longest of which is 3 km
long.
This helicopter borne geophysical survey was
followed by ground exploration on about half of the major
conductors only. The program was abandoned midway when it was
concluded that all anomalies visited were related to graphite
mineralization and that the base metal sulphides of interest were
nearly absent. Some of the graphite occurrences seem to be
associated to the contact (shear zone) between the different
geological units.
Galaxy plans to mount an aggressive exploration
campaign on the property commencing with a complete compilation of
historic geologic work followed by surface work, trenching and
diamond drilling. The exploration target is multiple crystalline
flake graphite deposits similar to other graphite deposits and
mines in Quebec such as Focus
Metals Inc.'s Lac Knife Deposit and Timcal Graphite and
Carbon's Lac des Iles Mine.
The geology of the property is primarily on the
contact zone between the Lac de la Blache anorthositic complex and
the cataclastic gabbro suite and a variably magnetic sequence of
cataclastic gabbro interlayered with paragneiss.
The Company cautions that it has not verified
the quality and accuracy of the historic sampling results reported
in this news release which predates the introduction of National
Instrument 43-101 and cautions readers not to rely upon them. The
historic figures were generated from sources believed to be
reliable; however, they have not been confirmed. Although the
sampling results are relevant, they have not been verified.
The optioned claims were acquired by the Company
and its partners by staking, and were acquired for project
generation. Zimtu, along with its prospecting partners, continues
to evaluate and acquire prospective resource properties to make
available for sale or joint venture. As part of the Company's
business, Zimtu provides mineral property advisory services and
helps to connect companies with mineral properties of interest.
Jean-Sebastien Lavallée (OGQ #773), geologist, a
Qualified Person as defined by National Instrument 43-101, has
reviewed and approved the technical content of this release.
About Zimtu Capital Corp.
Zimtu Capital Corp. invests in, creates and grows natural resource
companies thereby providing a way for shareholders to indirectly
participate and profit in the public company building process. The
Company also provides mineral property advisory services helping to
connect companies to properties of interest.
Zimtu Capital trades on the TSX Venture Exchange
under the symbol "ZC" and the Frankfurt Stock Exchange under the
symbol "ZCT1."
On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.
"David Hodge"
David Hodge
President & Director
Phone: 604.681.1568
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Statements in this document which are not purely
historical are forward-looking statements, including any statements
regarding beliefs, plans, expectations or intentions regarding the
future.
Forward-looking statements in this news release
include that Galaxy can earn a 100%-interest in the Sun Graphite
Property; that in consideration for its interest, Zimtu will
receive staged cash and share payments from Galaxy, that Zimtu's
partners will receive cash and share consideration equal to that of
Zimtu; that the vendors will collectively retain a 2% Net Milling
Royalty on the property, 1% of which can be purchased by Galaxy for
C$1 million; that Galaxy plans to
mount an aggressive exploration campaign on the Sun Property
commencing with a complete compilation of historic geologic work
followed by surface work, trenching, and diamond drilling; and that
Zimtu with the support of its prospecting partners will continue to
evaluate and acquire prospective resource properties to make
available for sale or joint venture.
It is important to note that actual outcomes and
the Company's actual results could differ materially from those in
such forward-looking statements. Risks and uncertainties include,
but are not limited to, economic, competitive, governmental,
environmental and technological factors that may affect the
Company's operations, markets, products and prices. Readers
should refer to the risk disclosures outlined in the Company's
Management Discussion and Analysis of its audited financial
statements filed with the British Columbia Securities
Commission.
SOURCE Zimtu Capital Corp.
