|June 07, 2011|
Zimtu Capital Corp. Announces Rare Earth Element Property Transaction With Rare Earth Metals Inc.
|June 7, 2011 - Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the "Company" or "Zimtu") is pleased to announce that the Company and two prospecting partners have completed an agreement with Rare Earth Metals Inc. (TSXv: RA) ("Rare Earth") whereby Rare Earth can earn a 100% interest in 40 unpatented claim units totaling 647 hectares that make up a part of their newly acquired Lavergne Rare Earth Element ("REE") Prospect located 80 kilometres east of Sudbury, Ontario.|
For its participation in the transaction, Zimtu will receive staged payments of C$100,000 and 1,000,000 common shares over a 24-month period. Zimtu's two acquisition partners will together receive cash and share consideration equal to that of Zimtu. The vendors will collectively retain a 2% Net Smelter Royalty on the claims; 1% of which can be purchased by Rare Earth for $1,000,000. The agreement is subject to acceptance by the TSX Venture Exchange.
Rare Earth's Lavergne Property, of which the optioned claims make up a part, covers a historic REE showing previously drilled in 1969 by Geophysical Engineering and Surveys Ltd. of North Bay, Ontario. Partial drill results from the four-hole program included 0.98% Rare Earth Oxide ("REO") over 112.7 meters which included a higher grade section of 1.22% REO over 63.3 meters (DDH-L-69-1). (Reference-Internal Report on the 1969 Diamond Drilling Program #.382 N.B.) True thicknesses of the mineralized intervals have yet to be determined. A second drill hole (DDH-L-69-4) completed 180 meters to the north along strike from DDH-L-69-1 intersected two separate mineralized zones which included 1.33% REO across 19.8 meters and 1.36% REO across 27.4 meters.
Additional trenching had extended the REE bearing zone to the south for approximately 600 meters where the REE mineral, bastnaesite, was identified throughout the mineralized sections. The 1969 assaying revealed that appreciable amounts of cerium up to 3.25%, lanthanum up to 1.33%, neodymium up to 0.70%, and europium up to 0.045% were present, however, only a few samples were assayed for all REEs. The drilling and trenching carried out at the time indicated that the mineralization is hosted within large areas of syenite with carbonatized and brecciated granite gneiss. The reader should be cautioned that these historic results have not been verified by Rare Earth or the Company and are historic in nature, so should not be relied upon.
Rare Earth is currently completing a compilation of the available data, and a work program, including airborne radiometric and magnetic surveying, gridding, mapping, sampling and drill testing will commence immediately.
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.
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 firstname.lastname@example.org.
Paul Nielsen, P.Geo, is the qualified person as defined in National Instrument 43-101, that reviewed and approved the technical information in this press 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 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:
Toll Free: 1.877.377.6222
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 Rare Earth can earn a 100% interest in 40 unpatented claim units located approximately 80 km east of Sudbury, Ontario; that in consideration for its interest, Zimtu will receive staged cash and share payments from Rare Earth, that the vendors will retain a 2% NSR on the properties; that 1% of the NSR can be purchased by Rare Earth for $1,000,000; that Rare Earth is currently completing a compilation of the available data for the property and will commence a work program immediately; 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: Thu Jun 16, 2011, Zimtu Capital Corp. Completes Transaction For Blachford Heavy Rare Earth Property, Thor Lake Area, NWT
You can view the Previous News Releases item: Wed Apr 20, 2011, Zimtu Capital Corp. Announces Rare Earth Element Property Transaction With Electric Metals Inc.
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