Transcript of "News Release: Zimtu Capital Announces Transaction with Olympic Resources"
ZIMTU CAPITAL CORP. ANNOUNCES TRANSACTION WITH OLYMPIC RESOURCES LTD. FOR FLORA LAKE GRAPHITE PROPERTY IN LABRADORMay 2, 2012 - Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the “Company” or “Zimtu”)is pleased to announce that the Company and one of its prospecting partners havesigned an agreement with Olympic Resources Ltd. (TSXv: OLA) ("Olympic") wherebyOlympic can earn a 100%-interest in the Flora Lake Graphite Property located inLabrador.Flora Lake Graphite Property:The Flora Lake Graphite Property (the "Property") consists of five contiguous claimblocks totaling approximately 4,104 hectares located 8 kilometers east of Labrador City,Labrador. The property is accessible via Trans Labrador Highway 500. The Project istransected by other infrastructure that services the nearby iron mines, such as powerlines and railroads.The Property was previously explored by the Newfoundland & Labrador CorporationLtd., in 1953, where a reconnaissance scale property mapping campaign discoveredseveral graphite occurrences. Impure quartzites and crystalline limestones on theproperty are reported to contain disseminated graphite. Additionally, other rock types offeldspar-quartz-biotite gneiss and mica-garnet gneiss are reported to contain graphiticschists on the Property. Regionally, these rocks have been mapped as part of theLower Proterozoic Gagnon Group, which is a high-grade metamorphic terrane host toseveral other graphite deposits in neighbouring Quebec; including the Lac Guéret andLac 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 biotitegneiss… The graphite occurs as disseminated flakes to a solid seam up to 2 inchesthick.”Olympic intends to mount an exploration campaign on the Property commencing with acomplete compilation of historic geologic work followed by electromagnetic geophysicalsurveys, surface mapping and sampling, trenching, and diamond drilling. Theexploration 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) LacKnife Deposit.Terms:For its participation in the transaction, Zimtu will receive staged cash and sharepayments from Olympic as follows: (i) $15,000 on signing; (ii) $15,000 and 750,000common shares on acceptance by the TSX Venture Exchange (“TSXv”); (iii) 250,000common shares 6 months from the date of TSXv acceptance; (iv) 250,000 commonshares 12 months from the date of TSXv acceptance; (v) 250,000 common shares 14months from the date of TSXv acceptance. Zimtu’s prospecting partner will receive cashand share consideration equal to that of Zimtu. The vendors will retain a 2% Net MillingRoyalty 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 prospectiveresource properties to make available for sale or joint venture. As part of the Companysbusiness, Zimtu provides mineral property advisory services and helps to connectcompanies 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 therebyproviding a way for shareholders to indirectly participate and profit in the publiccompany building process. The Company also provides mineral property advisoryservices helping to connect companies to properties of interest.Zimtu Capital trades on the TSX Venture Exchange under the symbol “ZC” and theFrankfurt Stock Exchange under the symbol “ZCT1.” For more information please visitthe corporate website at http://www.zimtu.com or contact:Kevin BottomleyShareholder ServicesToll Free: 1.877.377.6222Phone: 604.681.1568Email: firstname.lastname@example.org
On Behalf of the Board of DirectorsZIMTU CAPITAL CORP.“David Hodge”David HodgePresident & DirectorPhone: 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 anystatements 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 theFlora Lake Property; that in consideration for its interest, Zimtu will receive staged cash and sharepayments from Olympic, that Zimtus partners will receive cash and share consideration equal to that ofZimtu; that the vendors will collectively retain a 2% Net Milling Royalty on the property, 1% of which canbe purchased by Olympic for C$1 million; that Olympic plans to mount an exploration campaign on theFlora Lake Property commencing with a complete compilation of historic geologic work followed bysurface work, trenching, and diamond drilling; and that Zimtu with the support of its prospecting partnerswill continue to evaluate and acquire prospective resource properties to make available for sale or jointventure.It is important to note that actual outcomes and the Company’s actual results could differ materially fromthose in such forward-looking statements. Risks and uncertainties include, but are not limited to,economic, competitive, governmental, environmental and technological factors that may affect theCompanys operations, markets, products and prices. Readers should refer to the risk disclosuresoutlined in the Company’s Management Discussion and Analysis of its audited financial statements filedwith the British Columbia Securities Commission.