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News Release: First Gold Transaction


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News Release: First Gold Transaction

  1. 1. ZIMTU CAPITAL CORP. OPTIONS PACKAGE OF SEVEN RARE METAL PROJECTS IN SOUTHERN BRITISH COLUMBIA TO FIRST GOLD EXPLORATIONDecember 15, 2010 - Zimtu Capital Corp. (TSXv: ZC) (FSE: ZCT1) (“Zimtu”) is pleasedto announce that Zimtu and two of its prospecting partners have signed an agreementwith First Gold Exploration Inc. (TSXv: EFG) (FSE: F12) (OTCQX: FGEXF) (“FirstGold”) whereby First Gold can earn a 100% interest in a package of seven rare earthelement (“REE”) and niobium properties located in southeastern British Columbia.For its participation in the transaction, Zimtu will receive staged cash and sharepayments from First Gold as follows: (i) $12,500 on signing; (ii) $50,000 and 1,000,000common shares on TSX Venture Exchange (“TSXv”) acceptance; (iii) 500,000 commonshares on the first anniversary; and (iv) 500,000 common shares on the secondanniversary. Zimtu’s partners, Cathro Resources Corp. and Cazador Resources Ltd. willtogether receive cash and share consideration equal to that of Zimtu.During the term of the agreement, First Gold shall ensure that the claims are maintainedin good standing. The vendors will retain a 2% Net Smelter Royalty (“NSR”) on theproperties; 1% of which can be purchased by First Gold for C$1 million and the second1% of which can be purchased by First Gold for C$5 million. The transaction is subjectto acceptance by the TSXv.The seven properties: the Kin, Trident, IRC, Munroe, Hiren, Claire and Lindmark wereacquired by Zimtu and its partners in 2009 after a detailed review of government lakesediment geochemistry databases and an assessment of geological environmentsprospective for REEs and rare metals. Targets were then refined using geology,airborne magnetics, known mineral prospects, access, and land use considerations.The properties cover some of the highest and most significant regional governmentgeochemical results for REEs.In 2010, Zimtu and its partners retained TerraLogic Exploration Inc. to complete twoexploration assessments of the properties for their REE and niobium potential.Highlights from the 2010 prospecting, rock and silt sampling programs were as follows:Trident: Prospecting verified the presence of widespread syenite intrusions over 10 kmlong by up to 1 km wide at Trident Mountain. Most importantly, a total of eight rock andboulder samples collected in 2010 returned greater than 0.10% Nb2O5 (niobium oxide)with one grab sample from outcrop returning 2.82% Nb2O5 and 500 g/t Ta2O5(tantalum oxide). Four boulder samples also returned greater than 0.30% TREO (totalrare earth oxides) with one mafic intrusive boulder sample returning 2.81% TREO.
  2. 2. Kin: Prospecting results to date at the Kin property are very encouraging with foursyenite boulder samples over a 700 x 700 meter area returning up to 5.26% TREO and2.7% Nb2O5. Silt samples from the property are also exceedingly anomalous. Out of102 silt samples collected from all seven of Zimtu’s seven rare metal projects in 2010,the single highest value of 2622 ppm TREE (total rare earth elements) was returnedfrom this drainage. The sum of the boulder and silt anomalies indicates excellentprospective regions up-hill and up-ice within underexplored areas proximal to and/or onstrike with- the Trident Property, located 10 kilometers to the northwest.IRC: Nine rock samples were collected in 2010 with three of the samples returninggreater than 0.20% TREO. The best sample, a zeolite altered syenite, returned 0.30%TREO and 0.52% Nb2O5. This sample was a more anomalous version typical of 0.3-2mwide syenite dykes that crisscross through the mafic alkaline host rocks in this and otherparts of the Ice River Complex. This property is immediately adjacent to the Ice RiverREE-Niobium-Base Metals Project operated by Eagle Plains Resources Ltd.(TSXv:EPL).In British Columbia, carbonatites, nepheline and sodalite syenites gneisses and relatedalkaline rocks are found in a broad zone which is parallel to, and on either side of theRocky Mountain Trench (Pell, 1989). This belt has been labeled the “Rocky MountainRare Metal Belt”.All seven properties acquired were initially staked based on highly anomalous RGSstream-silt anomalies and prospective regional geology. Four of the properties, theTrident, Kin, IRC, and Hiren are part of, or proximal to, large alkaline intrusivecomplexes with established potential for REE and niobium mineralization. Together, theseven properties encompass 20,600 hectares.The properties were originally acquired by Zimtu and its partners by staking and wereacquired for project generation. Zimtu continues to evaluate and acquire prospectiveresource properties to make available for sale or joint venture and provides mineralproperty advisory services to connect companies with mineral properties of interest.For additional information on our mineral property advisory services and availableopportunities, contact Ryan Fletcher, Corporate Development and Director at604.681.1568 or via email at technical information in this news release has been reviewed by Jarrod Brown,P.Geo of Terralogic Exploration Inc., consultant to First Gold and a qualified person asdefined by National Instrument 43-101.
  3. 3. 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. Zimtu also provides mineral property advisory serviceshelping 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: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 First Gold can earn a 100% interest inseven rare earth element and niobium properties; that in consideration for the interest, Zimtu will receivestaged cash and share payments from First Gold, subject to the acceptance of the TSXv; that during theterm of the agreement, First Gold shall ensure that the claims are maintained in good standing; that thevendors will retain a 2% NSR on the properties; that 1% of the NSR can be purchased by First Gold forC$1 million; and that the remaining 1% of the NSR can be purchased by First Gold for C$5 million.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,
  4. 4. 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.