|February 23, 2012|
Zimtu Capital Corp. Announces Transaction with Galaxy Capital Corp. for Sun Graphite Property in Quebec
|Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the "Company" or "Zimtu") is pleased to announce that the Company and three prospecting partners have signed an agreement with Galaxy Capital Corp. (TSXv: GXY) ("Galaxy") whereby Galaxy can earn a 100%-interest in the Sun Graphite Property located in southern Quebec.|
A summary of the property is as follows:
Global consumption of natural graphite has increased from ~600,000 in 2000 to 1.2 MM t in 2012. 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 20 times more graphite required by weight to produce 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 1.2 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). 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.
The Sun Property
The Sun Graphite Property consists of one large contiguous block of 76 claims totaling approximately 4,200 hectares located 125 km northwest of the city of Baie-Comeau, Quebec. Access to the property is excellent with road access via the main lumber haul road which originates in Baie-Comeau and Labrieville.
The Sun Property was originally explored by Outokumpu Mines Inc. in 1998 exploring for base metal mineralization. An advanced helicopter borne geophysical program consisting of 2600 km of flight path in the region was performed. The airborne program located multiple electro-magnetic (EM) anomalies in the area, outside or coinciding with magnetic anomalies. In a 15 km long trend, there are multiple target anomalies and off-set structures, the longest of which is 3 km long.
This helicopter borne geophysical survey was followed by ground exploration on about half of the major conductors only. The program was abandoned midway when it was concluded that all anomalies visited were related to graphite mineralization and that the base metal sulphides of interest were nearly absent. Some of the graphite occurrences seem to be associated to the contact (shear zone) between the different geological units.
Galaxy plans to mount an aggressive exploration campaign on the property commencing with a complete compilation of historic geologic work followed by surface work, trenching and diamond drilling. The exploration target is multiple crystalline flake graphite deposits similar to other graphite deposits and mines in Quebec such as Focus Metals Inc.'s Lac Knife Deposit and Timcal Graphite and Carbon's Lac des Iles Mine.
The geology of the property is primarily on the contact zone between the Lac de la Blache anorthositic complex and the cataclastic gabbro suite and a variably magnetic sequence of cataclastic gabbro interlayered with paragneiss.
The Company cautions that it has not verified the quality and accuracy of the historic sampling results reported in this news release which predates the introduction of National Instrument 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 results are relevant, they have not been verified.
The optioned claims were acquired by the Company and its partners 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. As part of the Company's business, Zimtu provides mineral property advisory services and helps to connect companies with mineral properties of interest.
Jean-Sebastien Lavallée (OGQ #773), geologist, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical content of this 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 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 Galaxy can earn a 100%-interest in the Sun Graphite Property; that in consideration for its interest, Zimtu will receive staged cash and share payments from Galaxy, that Zimtu's partners will receive cash and share consideration equal to that of Zimtu; that the vendors will collectively retain a 2% Net Milling Royalty on the property, 1% of which can be purchased by Galaxy for C$1 million; that Galaxy plans to mount an aggressive exploration campaign on the Sun Property commencing with a complete compilation of historic geologic work followed by surface work, trenching, and 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.
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