|November 07, 2011|
Zimtu Capital Corp. Announces Graphite Property Transaction With Orocan Resource Corp.
|November 7, 2011 - 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:
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 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.
You can view the Next News Releases item: Thu Jan 5, 2012, Zimtu Capital Corp. Announces Graphite Property Transaction With Lomiko Metals Inc.
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