News Release: Lomiko Metals Graphite Transaction


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News Release: Lomiko Metals Graphite Transaction

  1. 1. ZIMTU CAPITAL CORP. ANNOUNCES GRAPHITE PROPERTY TRANSACTIONJanuary 5, 2012 - Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the “Company” or“Zimtu”) is pleased to announce that the Company and one of its prospecting partnershave signed an agreement with Lomiko Metals Inc. (TSXv: LMR; OTC: LMRMF; FSE:DH8B) (“Lomiko”) whereby Lomiko can earn a 100-per-cent interest in the Quatre MillesGraphite Property located in southwestern Quebec.For its participation in the transaction, Zimtu will receive staged payments totalingC$25,000 and 2,000,000 common shares over a 24-month period. Zimtu’s partner willreceive cash and share consideration equal to that of Zimtu. During the period which is12 months from the date of TSX Venture Exchange (“TSXv”) acceptance, Lomiko willcomplete a minimum of C$200,000 of exploration on the property. The vendors willcollectively retain a 2-per-cent net smelter royalty on the property, of which 1-per-centcan be purchased by Lomiko for C$1-million. The transaction is subject to acceptanceby the TSXv.Quatre Milles Graphite PropertyThe Quatre Milles Property is road accessible and is located approximately 175kilometres northwest of Montreal and 17 km due north of the village of Sainte-Veronique, Quebec. The property consists of 28 contiguous claims totalingapproximately 1,600 hectares.The property was originally staked and explored by Graphicor Resources Inc.(“Graphicor”) in the summer of 1989 based on the results of a regional helicopter-borneEM survey. The underlying geology consists of intercalated biotite gneiss, biotitefeldspar gneiss, marble, quartzite and calc-silicate lithologies of the CentralMetasedimentary Belt of the Grenville Province.Graphicor completed reconnaissance mapping and prospecting as well as groundgeophysics and a 26 hole diamond drill program totaling 1,625 metres. The workidentified several conductive trends in the central portion of the property and at leastthree, relatively flat lying graphitic beds. Three surface samples were collected andanalyzed returning results of 14.16% Cgf, 18.06% Cgf and 20.35% Cgf. Of the initial 26drill holes, 23 intersected graphite concentrations with a highlight of 8.07% Cgf over
  2. 2. 28.60 metres in hole Q90-9. The highest individual assay was reported in hole Q90-10reporting 15.48% Cgf over 0.50 metres.Graphicor geologists commented that the results of the initial drill program wereextremely encouraging and recommended additional detailed drilling to properlyunderstand and evaluate the potential of the property.Southwestern Quebec is host to some of the most favourable geological terrain forgraphite exploration in Canada, and is known for hosting significant resources ofgraphite, including the Lac Des Iles mine operated by Timcal. Lac des Iles is the largestof two Canadian graphite producers. It has been in production for over twenty years andproduces graphite products of various sizes and purities.Graphite MarketGlobal consumption of natural graphite has increased from approximately 600,000tonnes in 2000 to roughly 1.2 million tonnes in 2011. Demand for graphite has beenincreasing by approximately 5-per-cent per year since 2000 due to the continuingmodernization of China, India and other emerging economies, resulting in strongdemand from traditional end uses such as the steel and automotive industries. Graphitealso has many important new applications such as lithium-ion batteries, fuel cells, andnuclear and solar power that have the potential to create significant incrementaldemand growth. There is roughly 10-20 times more graphite in a lithium-ion battery thanthere is lithium. Demand for graphite is expected to rise as electric vehicles and lithiumbattery technology are adopted.Natural graphite comes in several forms: flake, amorphous and lump. Of the 1.2 milliontonnes of graphite produced annually, approximately 40-per-cent is of the mostdesirable flake type. China, which produces about 70-per-cent of the worlds graphite, isseeing production and export growth leveling, and export taxes and a licensing systemhave been instituted. A recent European Commission study regarding the criticality of41 different materials to the European economy included graphite among the 14materials high in both economic importance and supply risk (Critical Raw Materials forthe EU, July 2010).Graphite prices have been increasing in recent months and over the last couple of yearsprices for large flake, high purity graphite (+80 mesh, 94-97%C) have more thandoubled. Other public companies developing graphite projects in Canada includeNorthern Graphite Corp. with its Bissett Creek project in Ontario, and Focus Metals Inc.
  3. 3. with its Lac Knife project in Quebec. High-growth, high-value graphite applicationsrequire large-flake and high-purity graphite which is the prime exploration anddevelopment target at the Quatre Milles Property.Lomiko’s Near-Term StrategyLomiko plans to mount an aggressive exploration campaign on the Quatre MillesGraphite Property commencing with a complete compilation of historic geologic workfollowed by surface mapping, prospecting and follow-up diamond drilling.The optioned claims were acquired by the Company and its partner by staking, andwere acquired for project generation. Zimtu, along with its prospecting partners,continues to evaluate and acquire prospective resource properties to make available forsale or joint venture. For additional information on our mineral property advisoryservices and available opportunities, contact Ryan Fletcher, Corporate Developmentand Director at 604.681.1568 or via email at 43-101 DisclosureMr. Michel Robert, B.A., B.A.Sc, M.A.Sc, P. Eng, a Qualified Person as defined byNational Instrument 43-101, has read and approved the contents of this news release.The Company cautions that it has not had the chance to verify the quality and accuracyof the historic sampling and drilling results reported in this news release which predatethe introduction of NI 43-101 and cautions readers not to rely upon them. The historicfigures were generated from sources believed to be reliable, however, they have notbeen confirmed. Although the sampling and drilling results are relevant, they have notbeen verified.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 or contact:
  4. 4. Kevin BottomleyShareholder ServicesToll Free: 1.877.377.6222Phone: 604.681.1568Email: kevin@zimtu.comOn 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 Lomiko can earn a 100% interest in theQuatre Milles Graphite Property; that in consideration for its interest, Zimtu will receive staged cash andshare payments from Lomiko, that Zimtu’s partner will receive cash and share consideration equal to thatof Zimtu; that the vendors will collectively retain a 2% NSR on the property of which 1% can be purchasedby Lomiko for C$1 million; that Lomiko plans to mount an aggressive exploration campaign on the QuatreMilles Property commencing with a complete compilation of historic geologic work followed by surfacemapping, prospecting and follow-up diamond drilling; and that Zimtu with the support of its prospectingpartners will continue to evaluate and acquire prospective resource properties to make available for saleor joint venture.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.