|May 02, 2012|
Zimtu Capital Corp. Announces Transaction with Olympic Resources Ltd. for Flora Lake Graphite Property in Labrador
|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 Olympic Resources Ltd. (TSXv: OLA) ("Olympic") whereby Olympic can earn a 100%-interest in the Flora Lake Graphite Property located in Labrador.|
Flora Lake Graphite Property:
The Flora Lake Graphite Property (the "Property") consists of five contiguous claim blocks totaling approximately 4,104 hectares located 8 kilometers east of Labrador City, Labrador. The property is accessible via Trans Labrador Highway 500. The Project is transected by other infrastructure that services the nearby iron mines, such as power lines and railroads.
The Property was previously explored by the Newfoundland & Labrador Corporation Ltd., in 1953, where a reconnaissance scale property mapping campaign discovered several graphite occurrences. Impure quartzites and crystalline limestones on the property are reported to contain disseminated graphite. Additionally, other rock types of feldspar-quartz-biotite gneiss and mica-garnet gneiss are reported to contain graphitic schists on the Property. Regionally, these rocks have been mapped as part of the Lower Proterozoic Gagnon Group, which is a high-grade metamorphic terrane host to several other graphite deposits in neighbouring Quebec; including the Lac Guéret and Lac Knife Deposits.
The graphite occurrences on the Property are described by the author of the report, W.P. Boyko (1953) as: "graphitic bands up to 10 feet in the feldspar-quartz biotite gneiss... The graphite occurs as disseminated flakes to a solid seam up to 2 inches thick."
Olympic intends to mount an exploration campaign on the Property commencing with a complete compilation of historic geologic work followed by electromagnetic geophysical surveys, surface mapping and sampling, trenching, and diamond drilling. The exploration target is an open-pittable, crystalline flake graphite deposit similar to other graphite deposits and mines in Quebec such as Focus Metals Inc.'s (TSXv: FMS) Lac Knife Deposit.
For its participation in the transaction, Zimtu will receive staged cash and share payments from Olympic as follows: (i) $15,000 on signing; (ii) $15,000 and 750,000 common shares on acceptance by the TSX Venture Exchange ("TSXv"); (iii) 250,000 common shares 6 months from the date of TSXv acceptance; (iv) 250,000 common shares 12 months from the date of TSXv acceptance; (v) 250,000 common shares 14 months from the date of TSXv acceptance. Zimtu's prospecting partner will receive cash and share consideration equal to that of Zimtu. The vendors will retain a 2% Net Milling Royalty on the Property; 1% of which can be purchased by Olympic for C$1 million.
The optioned claims were acquired by the Company and its partner by staking. Zimtu, along with its prospecting partners, 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.
Neil McCallum, P.Geo., 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 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 Olympic can earn a 100%-interest in the Flora Lake Property; that in consideration for its interest, Zimtu will receive staged cash and share payments from Olympic, 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 Olympic for C$1 million; that Olympic plans to mount an exploration campaign on the Flora Lake 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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