News Release: Property Transaction with Strike Graphite Corp.


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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.

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News Release: Property Transaction with Strike Graphite Corp.

  1. 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 havesigned an agreement with Strike Graphite Corp. (TSXv: SRK) (“Strike”) whereby Strikecan earn a 100%-interest in the Wagon Graphite Property located in southwesternQuebec.The Wagon Property consists of three separate claim blocks totaling approximately3,000 hectares situated within the vicinity (approx. 15 km east) of Timcal’s Lac des IlesGraphite Mine, 150 km northwest of Montreal. Lac des Iles is the largest of twoCanadian graphite producers. It has been in production for over twenty years andproduces graphite products of various sizes and purities.For its participation in the transaction, Zimtu will receive staged cash and sharepayments from Strike as follows: (i) $3,750 on signing; (ii) $3,750 and 125,000 commonshares on acceptance by the TSX Venture Exchange (“TSXv”); (iii) $5,000 and 125,000common shares 6 months from the date of TSXv acceptance; and (iv) 125,000 commonshares 12 months from the date of TSXv acceptance. Zimtu’s three prospectingpartners will each receive cash and share considerations equal to that of Zimtu. Thevendors will collectively retain a 2% Net Smelter Royalty on the properties. During theperiod which is 12 months from the date of TSXv acceptance, Strike will complete aminimum of $100,000 of exploration on the property.Graphite MarketGlobal consumption of natural graphite has increased from ~600,000 in 2000 to 1.2 MMt in 2012. Demand for graphite has been increasing by approximately 5% per year since2000 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 automotiveindustries. Graphite also has many important new applications such as lithium-ionbatteries, fuel cells and nuclear and solar power that have the potential to createsignificant incremental demand growth. There is roughly 20-30 times more graphiterequired by weight to produce a lithium-ion battery than there is lithium. Demand forgraphite is expected to rise as electric vehicles and lithium battery technology areadopted as well as increasing uses in new technology applications.
  2. 2. Natural graphite comes in several forms: flake, amorphous and lump. Of the 1.2 milliontonnes of graphite produced annually, approximately 40% is of the most desirable flaketype. China, which produces about 70% of the worlds graphite, is seeing productionand export growth leveling and export taxes and a licensing system have beeninstituted. A recent European Commission study regarding the criticality of 41 differentmaterials to the European economy included graphite among the 14 materials high inboth economic importance and supply risk (Critical Raw Materials for the EU, July2010). Graphite prices have been increasing in recent months and over the last coupleof years prices for large flake, high purity graphite (+80 mesh, 94-97%C) have morethan doubled.Wagon PropertyThe Wagon Property was originally explored by Graphicor Resources Inc. (“Graphicor”)in 1989 based on the results of a helicopter-borne EM survey. Ground explorationfollowed in 1990.The geology of the property is consistent with the Central Metasedimentary Belt of theGrenville Province and includes quartzofeldspathic rocks, quartzite, biotite gneiss,marble and locally pegmatitic quartzofeldspathic rocks. Graphite is locally present inquartzite and biotite gneiss and in shear zones where the graphite content usuallyranges from 3% to 7% Cg exhibiting flakes up to 3 mm in diameter. Large flake graphiteis generally considered as 0.2 mm and above.Prospecting and reconnaissance geological mapping followed by line cutting andmultifrequency-coil separation Maxmin II and Mise-à-la-Masse surveys identifiedmultiple 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 andreturned assays of 0.57% to 18.13% Cg. The highest grades were more frequently fromthe 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. 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 18.13Maps are available for download on Strike’s website at: Company cautions that it has not verified the quality and accuracy of the historicsampling results reported in this news release which predate the introduction of NationalInstrument 43-101 and cautions readers not to rely upon them. The historic figures weregenerated 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 commencingwith 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, 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. As part of the Company’s business, Zimtu provides mineralproperty advisory services and helps to connect companies with mineral properties ofinterest.
  4. 4. Jean-Sebastien Lavallée (OGQ #773), geologist, a Qualified Person as defined byNational Instrument 43-101, has reviewed and approved the technical content of thisrelease.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: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 Strike can earn a 100%-interest in theWagon Graphite Property; that in consideration for its interest, Zimtu will receive staged cash and sharepayments from Strike, that Zimtus partners will receive cash and share consideration equal to that ofZimtu; that the vendors will collectively retain a 2% NSR on the property; that Strike plans to mount anaggressive exploration campaign on the Wagon Property commencing with a complete compilation ofhistoric geologic work followed by surface mapping, prospecting, mineral testing and processing, and
  5. 5. follow-up diamond drilling; and that Zimtu with the support of its prospecting partners will continue toevaluate 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 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.