VANCOUVER, Jan. 5, 2012 /CNW/ - Zimtu Capital Corp. (TSXv: ZC; FSE:
ZCT1) (the "Company" or "Zimtu") is pleased to announce that the
Company and one of its prospecting partners have signed an agreement
with Lomiko Metals Inc. (TSXv: LMR; OTC: LMRMF; FSE: DH8B) ("Lomiko")
whereby Lomiko can earn a 100-per-cent interest in the Quatre Milles
Graphite Property located in southwestern Quebec.
For its participation in the transaction, Zimtu will receive staged
payments totaling C$25,000 and 2,000,000 common shares over a 24-month
period. Zimtu's partner will receive cash and share consideration equal
to that of Zimtu. During the period which is 12 months from the date of
TSX Venture Exchange ("TSXv") acceptance, Lomiko will complete a
minimum of C$200,000 of exploration on the property. The vendors will
collectively retain a 2-per-cent net smelter royalty on the property,
of which 1-per-cent can be purchased by Lomiko for C$1-million. The
transaction is subject to acceptance by the TSXv.
Quatre Milles Graphite Property
The Quatre Milles Property is road accessible and is located
approximately 175 kilometres northwest of Montreal and 17 km due north
of the village of Sainte-Veronique, Quebec. The property consists of 28
contiguous claims totaling approximately 1,600 hectares.
The property was originally staked and explored by Graphicor Resources
Inc. ("Graphicor") in the summer of 1989 based on the results of a
regional helicopter-borne EM survey. The underlying geology consists of
intercalated biotite gneiss, biotite feldspar gneiss, marble, quartzite
and calc-silicate lithologies of the Central Metasedimentary Belt of
the Grenville Province.
Graphicor completed reconnaissance mapping and prospecting as well as
ground geophysics and a 26 hole diamond drill program totaling 1,625
metres. The work identified several conductive trends in the central
portion of the property and at least three, relatively flat lying
graphitic beds. Three surface samples were collected and analyzed
returning results of 14.16% Cgf, 18.06% Cgf and 20.35% Cgf. Of the
initial 26 drill holes, 23 intersected graphite concentrations with a
highlight of 8.07% Cgf over 28.60 metres in hole Q90-9. The highest
individual assay was reported in hole Q90-10 reporting 15.48% Cgf over
Graphicor geologists commented that the results of the initial drill
program were extremely encouraging and recommended additional detailed
drilling to properly understand and evaluate the potential of the
Southwestern Quebec is host to some of the most favourable geological
terrain for graphite exploration in Canada, and is known for hosting
significant resources of graphite, including the Lac Des Iles mine
operated by Timcal. Lac des Iles is the largest of two Canadian
graphite producers. It has been in production for over twenty years and
produces graphite products of various sizes and purities.
Global consumption of natural graphite has increased from approximately
600,000 tonnes in 2000 to roughly 1.2 million tonnes in 2011. Demand
for graphite has been increasing by approximately 5-per-cent per year
since 2000 due to the continuing 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 10-20 times
more graphite in a lithium-ion battery than there is lithium. Demand
for graphite is expected to rise as electric vehicles and lithium
battery technology are adopted.
Natural graphite comes in several forms: flake, amorphous and lump. Of
the 1.2 million tonnes of graphite produced annually, approximately
40-per-cent is of the most desirable flake type. China, which produces
about 70-per-cent 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. Other public companies developing
graphite projects in Canada include Northern Graphite Corp. with its
Bissett Creek project in Ontario, and Focus Metals Inc. with its Lac
Knife project in Quebec. High-growth, high-value graphite applications
require large-flake and high-purity graphite which is the prime
exploration and development target at the Quatre Milles Property.
Lomiko's Near-Term Strategy
Lomiko plans to mount an aggressive exploration campaign on the Quatre
Milles Graphite Property commencing with a complete compilation of
historic geologic work followed by surface mapping, prospecting and
follow-up diamond drilling.
The optioned claims were acquired by the Company and its partner 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. For
additional information on our mineral property advisory services and
available opportunities, contact Ryan Fletcher, Corporate Development
and Director at 604.681.1568 or via email at email@example.com.
NI 43-101 Disclosure
Mr. Michel Robert, B.A., B.A.Sc, M.A.Sc, P. Eng, a Qualified Person as defined by National Instrument 43-101, has read
and approved the contents of this news release.
The Company cautions that it has not had the chance to verify the
quality and accuracy of the historic sampling and drilling results
reported in this news release which predate the introduction of NI
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 and drilling results are
relevant, they have not been verified.
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." For more
information please visit the corporate website at http://www.zimtu.com or contact:
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 Lomiko can
earn a 100% interest in the Quatre Milles Graphite Property; that in
consideration for its interest, Zimtu will receive staged cash and
share payments from Lomiko, that Zimtu's partner will receive cash and
share consideration equal to that of Zimtu; that the vendors will
collectively retain a 2% NSR on the property of which 1% can be
purchased by Lomiko for C$1 million; that Lomiko plans to mount an
aggressive exploration campaign on the Quatre Milles Property
commencing with a complete compilation of historic geologic work
followed by surface mapping, prospecting and follow-up 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.
For further information:
Toll Free: 1.877.377.6222