VANCOUVER, March 15, 2012 /PRNewswire/ - Zimtu Capital Corp.
(TSXv: ZC; FSE: ZCT1) (the "Company" or "Zimtu") is pleased to
announce that the Company and two prospecting partners have signed
an agreement with Big North Capital Inc. (TSXv: NRT) ("Big North")
whereby Big North can earn a 100%-interest in the Griffith and Brougham Graphite Properties
located in southern Ontario.
Property highlights include:
- Approximate 6,500-hectare land position in central southeastern
Ontario
- Exploration target is high value, high quality large flake
graphite
- Area of well-established access and infrastructure
- Close to major end-use markets: United States and Europe
- Other companies with active development projects in the region
include Northern Graphite Corp. (Bissett
Creek) and Ontario Graphite Ltd. (Kearney).
For its participation in the transaction, Zimtu
will receive staged cash and share payments from Big North as
follows: (i) $20,000 on signing; (ii)
$20,000 and 500,000 common shares on
acceptance by the TSX Venture Exchange ("TSXv"); (iii) 250,000
common shares 14 months from the date of TSXv acceptance; and (iv)
250,000 common shares 24 months from the date of TSXv acceptance.
Zimtu's two prospecting partners will together 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 Big North for C$1
million. A finder's fee may be paid in connection with this
transaction up to the maximum permitted by the policies of the
TSX-V.
Griffith and
Brougham Graphite Properties
The property consists of two approximately
equal-size claim blocks in Lyndoch-Griffith and Brougham Townships,
respectively, that total approximately 6,500-hectares located
about 140 kilometres south of Ottawa. The claim blocks, known as the
Griffith Graphite Property and the Brougham Graphite Property
(together, the "Property"), contain or adjoin numerous historical
graphite occurrences. The Property is located in an area of
well-established access and infrastructure.
The Property covers substantial tracts of
graphite-prospective Grenville-age
marble+/-gneiss geology and are unexplored for graphite using
modern technology. The Brougham Graphite Property is anchored by
two historic graphite occurrences (based on Ontario Geological
Survey maps from the 1970's) to the southeast. The Griffith
Graphite Property covers a large area of favourable geology with
the historic Little-Bryan and Beidelman-Lyall graphite occurrences
to the west/south respectively and a marble quarry with reported
graphite to the east. Hosted by gneisses, the historic Little-Bryan
graphite occurrence is currently being explored by Standard
Graphite Corp.
There is currently a considerable amount of
graphite exploration activity in the Grenville geologic province of southern
Ontario. The Grenville province is characterized by a suite
of Precambrian-age, high grade metamorphic rocks that by virtue of
their initial carbon-bearing composition and metamorphic and
deformation history, are prospective for graphite, particularly the
coarse flake variety. Two of the most advanced projects in the
region are those of Northern Graphite Corp. at their Bissett Creek
Deposit and Ontario Graphite Ltd. (private) at their Kearney
Deposit.
Graphite Market
- Natural graphite comes in several forms, broadly: flake,
amorphous and lump.
- The total worldwide graphite market is currently estimated to
be US$12 Billion dollars (Ashbury
Carbons, Industrial Mineral Graphite Conference, Dec 2011) including: graphite electrodes, carbon
fibers, specialty graphite, granular and powder and all other
graphite products.
- Of the 1.2 million tonnes of graphite produced annually,
approximately 40 per cent is of the most desirable flake type.
- The price for flake graphite is USD$2000-$3000 per tonne depending on flake size,
purity and other characteristics.
- 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 largest end use markets for graphite are currently the
steel and automotive markets. Graphite also has many important new
applications such as lithium-ion batteries, fuel cells,
nuclear and solar power, vanadium-redox batteries, etc. that have
the potential to create significant new incremental demand
growth.
- China, which produces about 80
per cent of the world's graphite, is seeing production and export
growth leveling, and export taxes and a licensing system have been
instituted.
- Europe and the USA have both indicated graphite is of
economic importance and has a supply risk (Critical Raw Materials
for the EU, July 2010).
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.
Mr. Bill
Brereton, PEng, a qualified person as defined by National
Instrument 43-101, supervised the preparation of the technical
information in this news 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 Big North can earn a 100%-interest in the Griffith and Brougham Graphite Properties;
that in consideration for its interest, Zimtu will receive staged
cash and share payments from Big North, 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 Big North for
C$1 million; 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.