|November 22, 2010|
Zimtu Capital Corp. Completes Rare Earth Element Property Transaction with Remstar Resources Ltd.
|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 option agreement with Remstar Resources Ltd. (TSXv:REM) (FSE:W2U) ("Remstar") whereby Remstar can earn a 60% interest in the Snip and Seebach 02-03 Rare Earth Element ("REE") Properties located in the Carbo area of northeastern British Columbia.|
The Snip and Seebach 02-03 Properties are all located within the immediate vicinity of Spectrum Mining Corporation's Wicheeda REE Discovery as well as the Carbo Project which is currently being drilled by Canadian International Minerals Inc. and Commerce Resources Corp.
For its participation in the transaction, Zimtu will receive staged cash payments totaling $175,000. Zimtu's partner, 877384 Alberta Ltd. will receive cash consideration equal to that of Zimtu. Remstar will also be required to complete exploration expenditures totaling $5,000,000 over four years. The vendors will retain a 2% Net Smelter Royalty ("NSR") on the properties and shall be operators until Remstar has earned its 60% interest. As operators, the vendors will receive a ten per cent administration fee on exploration expenditures by Remstar. The transaction is subject to acceptance by the Toronto Venture Exchange ("TSXv").
The REE Projects were acquired by the Company and its partner by staking and were acquired for project generation. The Company and its joint venture partners have completed initial field programs over a number of REE properties during the year and as part of the Company's business, it 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.
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 .
The Company is also pleased to announce that it has received TSXv acceptance for and completed its private placement of 1,706,643 common shares at a price of $1.20 per share for gross proceeds of $2,047,973. The common shares are restricted from trading until March 15, 2011. Finder's fees totaling $50,800 cash was paid in accordance with the policies of the TSXv. The proceeds of the private placement will be used to advance the Company's continued investment business plan and for general working capital.
On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.
President and Director
Tel: 604 681 1568
TF: 877 377 6222
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 Zimtu will receive staged cash payments totaling $175,000 on acceptance by the TSX Venture Exchange for the Snip and Seebach 02-03 Properties; that 877384 Alberta Ltd. will receive cash and share consideration equal to that of Zimtu; that Remstar will also be required to complete exploration expenditures totaling $5,000,000 over four years; that the vendors will retain a 2% NSR on the properties and shall be operators until Remstar has earned its 60% interest; that Zimtu will continue to evaluate and acquire prospective resource properties to make available for sale or joint venture; and that Zimtu provides mineral property advisory services and helps to connect companies with mineral properties of interest.
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.
You can view the Next News Releases item: Tue Dec 7, 2010, Zimtu Capital Corp. Acquires Securities Of Brixton Metals Corp.
You can view the Previous News Releases item: Wed Nov 17, 2010, Zimtu Capital Corp. Options Carbo Rare Earth Properties to Arctic Star
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