VANCOUVER, March 15, 2012 /PRNewswire/ - Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the "Company" or "Zimtu") is pleased to announce that the Company and two prospecting partners have signed an agreement with Big North Capital Inc. (TSXv: NRT) ("Big North") whereby Big North can earn a 100%-interest in the Griffith and Brougham Graphite Properties located in southern Ontario.
Property highlights include:
- Approximate 6,500-hectare land position in central southeastern Ontario
- Exploration target is high value, high quality large flake graphite
- Area of well-established access and infrastructure
- Close to major end-use markets: United States and Europe
- Other companies with active development projects in the region include Northern Graphite Corp. (Bissett Creek) and Ontario Graphite Ltd. (Kearney).
For its participation in the transaction, Zimtu will receive staged cash and share payments from Big North as follows: (i) $20,000 on signing; (ii) $20,000 and 500,000 common shares on acceptance by the TSX Venture Exchange ("TSXv"); (iii) 250,000 common shares 14 months from the date of TSXv acceptance; and (iv) 250,000 common shares 24 months from the date of TSXv acceptance. Zimtu's two prospecting partners will together receive cash and share considerations equal to that of Zimtu. The vendors will collectively retain a 2% Net Milling Royalty on the Property; 1% of which can be purchased by Big North for C$1 million. A finder's fee may be paid in connection with this transaction up to the maximum permitted by the policies of the TSX-V.
Griffith and Brougham Graphite Properties
The property consists of two approximately equal-size claim blocks in Lyndoch-Griffith and Brougham Townships, respectively, that total approximately 6,500-hectares located about 140 kilometres south of Ottawa. The claim blocks, known as the Griffith Graphite Property and the Brougham Graphite Property (together, the "Property"), contain or adjoin numerous historical graphite occurrences. The Property is located in an area of well-established access and infrastructure.
The Property covers substantial tracts of graphite-prospective Grenville-age marble+/-gneiss geology and are unexplored for graphite using modern technology. The Brougham Graphite Property is anchored by two historic graphite occurrences (based on Ontario Geological Survey maps from the 1970's) to the southeast. The Griffith Graphite Property covers a large area of favourable geology with the historic Little-Bryan and Beidelman-Lyall graphite occurrences to the west/south respectively and a marble quarry with reported graphite to the east. Hosted by gneisses, the historic Little-Bryan graphite occurrence is currently being explored by Standard Graphite Corp.
There is currently a considerable amount of graphite exploration activity in the Grenville geologic province of southern Ontario. The Grenville province is characterized by a suite of Precambrian-age, high grade metamorphic rocks that by virtue of their initial carbon-bearing composition and metamorphic and deformation history, are prospective for graphite, particularly the coarse flake variety. Two of the most advanced projects in the region are those of Northern Graphite Corp. at their Bissett Creek Deposit and Ontario Graphite Ltd. (private) at their Kearney Deposit.
Graphite Market
- Natural graphite comes in several forms, broadly: flake, amorphous and lump.
- The total worldwide graphite market is currently estimated to be US$12 Billion dollars (Ashbury Carbons, Industrial Mineral Graphite Conference, Dec 2011) including: graphite electrodes, carbon fibers, specialty graphite, granular and powder and all other graphite products.
- Of the 1.2 million tonnes of graphite produced annually, approximately 40 per cent is of the most desirable flake type.
- The price for flake graphite is USD$2000-$3000 per tonne depending on flake size, purity and other characteristics.
- 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 largest end use markets for graphite are currently the steel and automotive markets. Graphite also has many important new applications such as lithium-ion batteries, fuel cells, nuclear and solar power, vanadium-redox batteries, etc. that have the potential to create significant new incremental demand growth.
- China, which produces about 80 per cent of the world's graphite, is seeing production and export growth leveling, and export taxes and a licensing system have been instituted.
- Europe and the USA have both indicated graphite is of economic importance and has a 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, 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.
Mr. Bill Brereton, PEng, 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."
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 Big North can earn a 100%-interest in the Griffith and Brougham Graphite Properties; that in consideration for its interest, Zimtu will receive staged cash and share payments from Big North, 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 Big North for C$1 million; 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.
SOURCE Zimtu Capital Corp.
