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 0.50 metres.
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 property.
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 protected].
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.
For further information:
Toll Free: 1.877.377.6222
Email: [email protected]