Zimtu Capital Corp. announces that the Company and three of its prospecting partners have signed an agreement with Strike Graphite Corp. whereby Strike can earn a 100% interest in the Wagon Graphite Property located in southwestern Quebec.
News Release: Property Transaction with Strike Graphite Corp.
1. ZIMTU CAPITAL CORP. ANNOUNCES PROPERTY TRANSACTION WITH STRIKE
GRAPHITE CORP.
February 14, 2012 - 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 Strike Graphite Corp. (TSXv: SRK) (“Strike”) whereby Strike
can earn a 100%-interest in the Wagon Graphite Property located in southwestern
Quebec.
The Wagon Property consists of three separate claim blocks totaling approximately
3,000 hectares situated within the vicinity (approx. 15 km east) of Timcal’s Lac des Iles
Graphite Mine, 150 km northwest of Montreal. Lac des Iles is the largest of two
Canadian graphite producers. It has been in production for over twenty years and
produces graphite products of various sizes and purities.
For its participation in the transaction, Zimtu will receive staged cash and share
payments from Strike as follows: (i) $3,750 on signing; (ii) $3,750 and 125,000 common
shares on acceptance by the TSX Venture Exchange (“TSXv”); (iii) $5,000 and 125,000
common shares 6 months from the date of TSXv acceptance; and (iv) 125,000 common
shares 12 months from the date of TSXv acceptance. Zimtu’s three prospecting
partners will each receive cash and share considerations equal to that of Zimtu. The
vendors will collectively retain a 2% Net Smelter Royalty on the properties. During the
period which is 12 months from the date of TSXv acceptance, Strike will complete a
minimum of $100,000 of exploration on the property.
Graphite Market
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 20-30 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.
2. 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 70% 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.
Wagon Property
The Wagon Property was originally explored by Graphicor Resources Inc. (“Graphicor”)
in 1989 based on the results of a helicopter-borne EM survey. Ground exploration
followed in 1990.
The geology of the property is consistent with the Central Metasedimentary Belt of the
Grenville Province and includes quartzofeldspathic rocks, quartzite, biotite gneiss,
marble and locally pegmatitic quartzofeldspathic rocks. Graphite is locally present in
quartzite and biotite gneiss and in shear zones where the graphite content usually
ranges from 3% to 7% Cg exhibiting flakes up to 3 mm in diameter. Large flake graphite
is generally considered as 0.2 mm and above.
Prospecting and reconnaissance geological mapping followed by line cutting and
multifrequency-coil separation Maxmin II and Mise-à-la-Masse surveys identified
multiple zones of parallel conductors. According to reports by Derry, Michener, Booth &
Wahl (“DMBW”), graphite is present in all lithologies on the property. DMBW wrote:
“Diamond drilling is warranted to test the prospective regions of this property.”
About one hundred outcrops were located on the property. 15 were sampled and
returned assays of 0.57% to 18.13% Cg. The highest grades were more frequently from
the paragneiss lithologies. The property covers 18 km strike length of the formations.
Wagon Property – Sampling Results
Area Outcrop number Sample Number Percent Graphite
North Block K1 51001 13.73
K3 51002 1.31
3. K4 51003 7.83
K6 51004 1.88
K7 51005 4.36
K9 51006 2.07
K10 51007 5.33
Center Block K27 na 4.17
K31 na 4.78
K33 na 3.45
K34 na 2.01
na 42413 2.07
na 42414 3.27
na 42415 2.64
na 42416 14.14
East Block na 42418 1.02
na 42419 0.57
na 42420 1.22
na 42421 18.13
Maps are available for download on Strike’s website at: http://www.strikegraphite.com/
The Company cautions that it has not verified the quality and accuracy of the historic
sampling results reported in this news release which predate 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.
Strike plans to mount an aggressive exploration campaign on the property commencing
with a complete compilation of historic geologic work followed by surface mapping,
prospecting, mineral testing and processing, and follow-up diamond drilling.
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.
4. 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 http://www.zimtu.com or contact:
Kevin Bottomley
Shareholder Services
Toll Free: 1.877.377.6222
Phone: 604.681.1568
Email: kevin@zimtu.com
On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.
“David Hodge”
David Hodge
President & Director
Phone: 604.681.1568
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 Strike can earn a 100%-interest in the
Wagon Graphite Property; that in consideration for its interest, Zimtu will receive staged cash and share
payments from Strike, that Zimtu's partners will receive cash and share consideration equal to that of
Zimtu; that the vendors will collectively retain a 2% NSR on the property; that Strike plans to mount an
aggressive exploration campaign on the Wagon Property commencing with a complete compilation of
historic geologic work followed by surface mapping, prospecting, mineral testing and processing, and
5. follow-up 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.