VANCOUVER, Feb. 23, 2012 /CNW/ - 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.
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.
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
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
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
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
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.
President & Director
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
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.
For further information:
please visit the corporate website at http://www.zimtu.com or contact:
Toll Free: 1.877.377.6222