|June 16, 2011|
Zimtu Capital Corp. Completes Transaction For Blachford Heavy Rare Earth Property, Thor Lake Area, NWT
|June 16, 2011 - 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 Solace Resources Corp. (TSXv: SOR) ("Solace") whereby Solace can earn a 100% interest in the Blachford Rare Earth Element ("REE") Property located in the Northwest Territories approximately 100 kilometres southeast of the city of Yellowknife. The property is contiguous to Avalon Rare Metals Inc.'s (TSX: AVL; NYSE Amex: AVL) ("Avalon") Thor Lake REE Project.|
For its participation in the transaction, Zimtu will receive staged payments totaling C$100,000 and 1,250,000 common shares over a 18-month period. Zimtu's partner, 877384 Alberta Ltd. will receive cash and share consideration equal to that of Zimtu. The vendors will collectively retain a 2% Net Smelter Returns Royalty on the property; 1% of which can be purchased by Solace for C$1,000,000. The transaction is subject to acceptance by the Toronto Venture Exchange ("TSXv"). In conjunction with the completion of the transaction, a finder's fee will be payable in accordance with the policies of the TSXv.
The Blachford Property consists of one claim, totaling approximately 1,000 acres, within the north-central part of the Blachford Lake Intrusive Complex. The Blachford Lake Intrusive Complex measures more than 10 kilometres in diameter, the largest portion of which is covered by Avalon's Thor Lake Project. At Thor Lake, five distinct zones of rare metal mineralization have been identified as being of potential economic interest: the Nechalacho Deposit and the North T, South T, S and R Zones. Avalon's current focus is the Nechalacho Rare Metal Deposit due to its size and enrichment in REEs. Nechalacho is particularly notable for its enrichment in the valuable heavy REEs such as europium, terbium and dysprosium, relative to light REEs such as lanthanum and cerium. The principal rock types in the Blachford Lake Intrusive Complex are syenites, granites and gabbros and associated pegmatitic phases hosting rare metal mineralization.
The Blachford Property optioned to Solace is located approximately 1,500 metres northwest of the Nechalacho Deposit, and about 800 metres west of the North T Zone. The Property was staked by Zimtu and its partner when it became apparent that the area was open for staking in late 2010. Zimtu and its partner also staked three additional claims (BLAT 01, 03, & 04 together the "BLAT Claims"), which cover approximately 6,000 acres and are contiguous to the north of Avalon's Thor Lake Property. These claims are currently overlapped by a claim staked by a competing staker, with the overlapped portions under dispute. Zimtu, its partner, and Solace have entered into a separate agreement so that any portion, or if applicable all, of the BLAT Claims that are formally granted to the Vendors will be added to the Blachford Rare Earth Property in the formal option agreement to be entered into between the parties.
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 email@example.com.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Jody Dahrouge, P.Geol., a qualified person.
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:
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 Solace can earn a 100% interest in the Blachford Rare Earth Element Property located in the Northwest Territories; that in consideration for its interest, Zimtu will receive staged cash and share payments from Solace, that Zimtu's partner 877384 Alberta Ltd. will receive cash and share consideration equal to that of Zimtu; that the vendors will collectively retain a 2% NSR on the property; that 1% of the NSR can be purchased by Solace for $1,000,000; that in conjunction with the completion of the transaction a finder's fee will be paid; that all of the BLAT Claims that are formally granted will be added to the Blachford Rare Earth Property in the formal option agreement; 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.
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