|August 15, 2012|
Zimtu Capital Corp. Announces Transaction with Olympic Resources Ltd. for McWhirter Lake Graphite Property in Ontario
|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 Olympic Resources Ltd. (TSXv: OLA) ("Olympic") whereby Olympic can earn a 100%-interest in the McWhirter Lake Graphite Property located in southern Ontario.|
McWhirter Lake Graphite Property:
The McWhirter Lake Graphite Property (the "Property") is located in the heart of southern Ontario graphite country, 13 kilometers southeast of the historic settlement of Graphite, Ontario and 15 kilometers northeast of Bancroft in the Carlow, Monteagle and Dungannon townships. The Property has the advantage of well developed access and infrastructure, bounded by provincial highways 62 to west and 28 to the south with extensive logging/forest access roads in the area. The Property is composed entirely of 3,132 hectares of unpatented mining claims.
The Property spans approximately 15 kilometers of strike extent of graphite-prospective Grenville marbles and gneisses and is anchored by the historic McWhirter Lake graphite occurrence (Lot 10, Con 8, Carlow Twp) for which there is very little concrete information. It was apparently first staked and worked in the early 1900s. A pit 12 feet by 15 feet to a depth of 6 feet to water level is described. The graphite-bearing rocks are described as paragneisses and marble. Another occurrence is mentioned in a 1931 government report in Con 9, which may be a continuation of this geological trend to the north.
Olympic's first order of business will be to fly airborne EM and mag over the entire property and complete a groundwork reconnaissance program including surface mapping, sampling and an effort to locate the historic workings in the field. A follow up exploration program would be planned to follow.
For its participation in the transaction, Zimtu will receive staged cash and share payments from Olympic as follows: (i) $10,000 on signing; (ii) $10,000 and 750,000 common shares on acceptance by the TSX Venture Exchange ("TSXv"); (iii) 250,000 common shares 12 months from the date of TSXv acceptance; (iv) 250,000 common shares 14 months from the date of TSXv acceptance. Zimtu's prospecting partners will collectively receive cash and share consideration equal to that of Zimtu. The vendors will retain a 2% Net Smelter 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 partners 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.
Mr. Bill Brereton, P.Eng., a Qualified Person as defined by National Instrument 43-101, independent of Olympic, and an Optionor of the Property, 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".
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 McWhirter 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 Smelter Royalty on the property, 1% of which can be purchased by Olympic for C$1 million; that Olympic's first order of business will be to fly airborne EM and mag over the entire property and complete a groundwork reconnaissance program including surface mapping, sampling and an effort to locate the historic workings in the field; that a follow up exploration program would be planned to follow; 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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