VANCOUVER, Nov. 7, 2011 /CNW/ - Zimtu Capital Corp. (TSXv: ZC; FSE:
ZCT1) (the "Company" or "Zimtu") is pleased to announce that the
Company and two of its prospecting partners have signed an agreement
with Orocan Resource Corp. (TSXv: OR) ("Orocan") whereby Orocan can
earn a 100%-interest in the three graphite properties in Ontario,
Canada including the Black Donald and Little Bryan Properties.
For its participation in the transaction, Zimtu will receive staged
payments totalling C$12,500 and 1,000,000 common shares over a 24-month
period. Zimtu's partners, Bill Brereton and Paul Sobie, will
collectively receive cash and share consideration equal to that of
Zimtu. The vendors will retain a 2% Net Smelter Returns Royalty on the
properties; which can be purchased by Orocan for C$1 million. The
transaction is subject to acceptance by the TSX Venture Exchange
("TSXV"). A finder's fee will be payable with respect to the
transaction pursuant to the policies of the TSXV.
Black Donald Property
Strategically surrounding the past producing Black Donald Graphite Mine
(1896-1954), this very large property (~9000 ha) encompasses a
substantial area of favourable marble +/- paragneiss geology and
contains or adjoins numerous historical graphite occurrences. The Black
Donald Graphite Mine was one of the largest and richest graphite
deposits in North America and was extremely high grade with historic
ore grades of up to 80% graphitic carbon ("Cg"). During the last 10
years of mine life the average reported grade was 25-30% Cg. Some 94%
of the total value of Ontario graphite production came from the Black
Donald Mine. The graphite was in both high quality flake and amorphous
form. A number of historical occurrences are recorded in various
Ontario government reports on and adjacent to the present property.
Little Bryan Property
This ~3000 ha. property located in central Lyndoch Township includes the
historic Little-Bryan graphite prospect and a considerable amount of
unexplored favourable paragneiss/marble geology to the north and west
of the known occurrence.
The immediate area of the graphite prospect was last explored in 1989 by
consulting firm Derry, Michener, Booth and Wahl (DMBW) on behalf of
Harrington Sound Resources Inc. in a comprehensive program including
geological mapping and prospecting, trenching, channel sampling and
ground geophysics. This work showed the Little-Bryan graphite
mineralization to be hosted by pyritic gneisses.
For additional geologic information on the Black Donald and Little Bryan
Properties see the Orocan news release announced today Nov 7, 2011.
Global consumption of natural graphite has increased from ~600,000 t in
2000 to 1.1 MM t in 2010. 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 10 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 as well as increasing uses
in new technology applications.
Natural graphite comes in several forms: flake, amorphous and lump. Of
the one 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).
The optioned claims were acquired by the Company and its partners by
staking and were acquired for project generation. Zimtu will continue
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.
NI 43-101 Disclosure
Mr. Bill Brereton, P.Eng., 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." 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 Orocan can
earn a 100% interest in three graphite properties in Ontario, Canada
including the Black Donald and Little Bryan Properties; that in
consideration for its interest, Zimtu will receive staged cash and
share payments from Orocan, that Zimtu's partners Bill Brereton and
Paul Sobie will receive cash and share consideration equal to that of
Zimtu; that the vendors will collectively retain a 2% NSR on the
property which can be purchased by Orocan for C$1 million; and that
Zimtu 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