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Zimtu Capital Corp. Newsletter (PDAC2012)


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Zimtu Capital Corp. newsletter from the 2012 Prospectors and Developers Conference in Toronto (March 2012)

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Zimtu Capital Corp. Newsletter (PDAC2012)

  1. 1. Issue 01/2012 inside inside LET THE BULL RUN! Connecting Opportunity and You.CONTENT:Editorial:The Benefit ofBeing the Early BirdSven Olsson about Zimtu´sstrategy and targets as a firstround investor. ...more on page 1 and 3INterview:Ryan Fletcher aboutGraphite ApplicationsExpandingNew battery technologieschange the dynamics of the Dave Hodge (l.), CEO of Zimtu, is sponsored by Zimtu Capital and the Vancouver. Many photos on Facebookgraphite market. This provides a known for taking the bull by the organizers was the main attraction at prove: The bull has what it takes togreat opportunity for investors. horns. The 600 pound bronze bull the Cambridge House Conference in be a recognizable trademark. ...more on page 4GUest Article: The BeneFit of Being the Early BirdPassionate About Zimtu´s Strategy as A First Round InvestorExploring in TurkeyPasinex Resources CEO Steve Every resource investor dreams about being Zimtu‘s portfolio includes compa- part of a success story from the very be- nies at different stages - from grassrootsWilliams explains why investors ginning - from 5 cents to 5 dollars. The to development. The most advanced com-should have a close look at problem is private investors rarely have the panies are also the most well-known Zim-opportunities in Turkey now. opportunity to get involved at such an early tu creations: Commerce Resources Corp. stage. Early investments are part of Zimtu‘s (TSX.V: CCE) and Western Potash Corp. ...more on page 6 business model; we invest exclusively in (TSX: WPX). first-round financings or in similar special CCE has released a positive preli-Zimtu Update: situations. That‘s how we ensure that all minary economic assessment (PEA) for itsShares from most recent Zimtu shareholders have this access at the Blue River Tantalum and Niobium projectGraphite Transactions same time. and expects to publish a preliminary eco-In the last six months Zimtu nomic assessment for its Eldor Rare Earth by Sven Olssonhas succesfully completed four Project in Quebec this spring. Commerce Resources initially shared common manage- Mgraphite transactions. any investors regard the stock ment with Zimtu (IPO in 2001) and the ori- market as a casino. They follow ginal CCE shareholder list was created from ...more on page 8 performance charts and news and a share distribution to Zimtu shareholders. try their luck according to the WPX expects to present its feasibili- maxim „Buy low, sell high“. We should be ty study for a potash mine in Saskatchewan happy they do so, since that‘s what creates by the end of this year. The capital expen- liquidity in the market. However; a lot of diture for this solution mine is estimated at traders lose sight of the fact that the stock $3 billion - and yet the company was star- market was originally established to make ted from scratch in 2007. high-risk ventures possible by using the When Zimtu wrote the first check, combined financial strength of many. the capital markets were ready for potash Resource companies are classic explorers. The management of Zimtu, along candidates for equity financings through with a top team of geologists was standing the stock market, in that the capital needs by and, by stroke of good fortune, a pro- of mineral exploration companies typically spector presented a property in Manitoba exceed the financial strength of individu- and the property was acquired. There was Besuchen us: uns: Visit Sie als to find and develop economic deposits. no more information than that.; Zimtu hel- Forming new resource companies, as Zimtu ped to finance the initial seed round, and does, involves courage, experience and the the risk paid off. confidence of the market. ...more on page 3 -1-
  2. 2. insideCOMMENTaryDear Readers,H eads up! outstanding management in each of those companies. To use an analogy, in the early You are holding the first edition stages we feel that we should bet on the jo- of Zimtu-Inside in your hands. We ckey rather than the horse. We know that ahave decided that since this is our third good management team will be able to findyear as a publicly-traded investment com- the winning horse. These entrepreneurs jus-pany it is time for this newsletter. tifiably expect more than money from Zim- Zimtu is growing rapidly. This news- tu, and we have historically provided this;letter, which will be released regularly, is we secure success with our broad contactsdesigned to improve the communication to investors and our marketing in the capi-with our investors and enable them to un- tal markets. The plan is for us to cross thederstand the intricacies of our business finish line together.model. We want to demonstrate the broad With our investments in emergingspectrum of our investments and substanti- graphite exploration companies, we are be-ate, with background reports or interviews, ginning to see the seeds we have planted Sven Olssonwhy we pick up on certain trends or why we germinate. We realized about 12 months Director of Zimtu Capital Corp.choose to invest in specific companies. We ago that graphite is more than a commoditywill address the most significant develop- of the so called „old economy“ but that itments for our respective investments in the has to be re-evaluated due to its new appli-final section of every issue - a service for our cations, in particular as cathode material inreaders and the companies we invested in. lithium ion batteries. So we employed our The year 2012 is a special year for network of geological experts to find theZimtu. We have proven our business model best graphite properties worldwide. Sincein the three years since our listing and have then we have sold four of these projectsmatured. From the management‘s perspec- to emerging public companies and to datetive, I would like to say that we are in a have received more than 4 million shares asstronger position than ever before. Zimtu compensation. EVENT DATES:has used 2011, a weak year in the stock Should the broad investment com- Here you can find all events wheremarkets, to sow the seeds by investing in munity, as we anticipate, discover the gra- you can meet us.a number of new companies that we want phite sector this year, Zimtu will be able toto start harvesting in 2012. The market, of benefit significantly. We are looking forward March 4th - 7th, 2012course, has to play its part as well. to 2012 being an exciting year. PDAC Toronto Even if the markets only provide a Metro Toronto Conventionmerely tolerable environment, several Zim- So here’s our first issue and we hope youtu investments will be seeking a public lis- will enjoy reading it. Centre - South Building / Canadating this year. Some of the most prospectivecandidates are Discovery Harbour Resour- Sven Olsson March 30th & 31st, 2012ces, Jack‘s Fork, Camisha Resources and Director of Zimtu Capital Corp. Calgary Energy &Pacific Polar. We are proud to support the Resource Investment Conference Calgary Telus Convention Centre Macleod Hall / Canada IMPRINT: Disclaimer: April 27th - 29th, 2012 PUBLISHER: INVEST Stuttgart 2012 The views expressed here in this newsletter Zimtu Capital Corp. Messe Stuttgart - Entrance Suite 1450 - 789 West Pender St. contain information derived from publicly available Vancouver, BC sources and have not been independently verified. East/ Germany V6C 1H2 No representation or warranty is made as to Canada the accuracy, completeness or reliability of the information. June 3rd & 4th, 2012 Tel: +1 604 681 1568 Fax: +1 604 681 8240 Any forward looking information in this newsletter World Resource Investment Editor: has been prepared on the basis of a number of Conference Sven Olsson assumptions which may prove to be incorrect. Vancouver Convention Centre / This newsletter should not be relied upon as a Translation: recommendation or forecast by Zimtu Capital Canada Tamara Faust Corp. or any other company mentioned in this Guest ArtiCle: newsletter. November 2nd & 3rd, 2012 Steve Williams, CEO of Pasinex Resources Ltd. Nothing in this newsletter should be constructed Edelmetallmesse München Layout & Design: as either an offer to sell or a solicitation of an offer Kerstin Schickendanz & Jarret Kusick to buy or sell shares in any jurisdiction. Olympia Park - Event arena / Germany -2-
  3. 3. insideEDitorial ContinuedToday, WPX‘s market cap is more than$200 million and its shares trade at $1.35.The company represents 20% of the valueof Zimtu‘s investment portfolio. Zimtu can afford to structure itsportfolio differently than a fund manager,which constitutes a big advantage. We stayinvested if we are confident that the compa-ny has a chance of success. A fund mana-ger could hardly afford this luxury given theprotests he would receive from his compli-ance department. There is something else investorsshould know, Zimtu has only 10 millionshares issued and outstanding. Therefore,our investments have huge leverage perZimtu share. The stock performance chart ofsuccessful exploration companies tends tofollow a similar pattern - a sharp increasein the discovery stage, flattening in the All participants presenting themselves in Zurich in front of the Zimtu Tour Bus during the Zimtu Roadshow 2011.development stage and finally another in-crease after the production decision. Zimtu A phenomenon takes place at the jects. We have realized at an early stageshareholders are familiar transition from pre- that the development of current batterywith this chart from our IPO to public listing - technologies, namely the lithium ion batte-presentation. However; we „As soon as we believe we value creation. Zimtu ry, will decisively change the fundamentalshave expanded the known have a jackpot, we can stay uses this effect in two of the graphite market.diagram with a triangle invested unlike a funds different ways: firstly, This is just another example of thein the pre-IPO stage (see manger, who is accountable through direct invest- management of Zimtu seeing and seizingchart below). Finally, and ment in private com- an opportunity; a commodity with a growing to his compliancemost importantly, the pre- panies and secondly, demand that is not well represented by theIPO stage is usually closed department.“ through our transac- mineral exploration sector - this spells op-to most private investors; Sven Olsson tional business. portunity for Zimtu and its shareholders.this is unfortunate since Director of Zimtu Capital Corp. ​ In the last 12 In order to meet the future demandthe performance is never months, Zimtu has for graphite to be used in cathodes, dozensbetter than at the transitional stage from a specifically built a portfolio of investments of new mines would have to be developed,private to a public company and it is at this in the graphite space, not by purchasing particularly outside of China. Therefore, westage that Zimtu exposes its shareholders to shares but by successfully arranging the have instructed our geological partners tothis upside. transactions of prospective graphite pro- specifically look worldwide for the best gra- phite projects and subsequently sold the- se projects to emerging public companies. Being highly profitable for Zimtu, transac- tions are an important part of our business model. Before being staked and explored, a resource property is generally not very valu- able. Only when such a project is put into a public company with the ability to fund exploration does its value increase. Then there is the potential for the discovery of a deposit and the development of a mine. Entrepreneurs and founders of re- source companies like to work with us be- cause they know that Zimtu is a patient investor and has more to offer than just money. We try to support our investments in many aspects. We make our network of investors available and create opportunities to increase the visibility of the companies. Last fall, eight of our companies participa- ted in a roadshow in Europe. The trip was a great success, attracting institutional and retail investors already familiar with the Zimtu brand. This opened many doors for our investment companies. • -3-
  4. 4. insideInterviewRyan Fletcher: Graphite Applications Expanding„The demand fOR GRAPHITE increases about 3-5% per year“Graphite, once the stuff of pencil lead, fi- TCMR: How does graphite figure into ener-gures prominently in post-paper-age consu- gy storage applications?mer electronics, and escalating spot prices RF: The most important applications inreflect its critical role in electric vehicle energy storage are lithium-ion batteriesmanufacturing. In this exclusive interview and fuel cells. A lithium-ion battery needswith The Critical Metals Report, Zimtu 20 to 30 times more graphite by weightCapital Director Ryan Fletcher explains the than lithium. Based on that, the numberfundamentals underpinning the graphite of end user transactions, the amount ofmarket. It adds up to ample opportunities capital and the level of interest in thefor investors. graphite space should be about 20 to 30 Published on January 24th, 2012 times more than in the lithium space, but by Sally Lowder graphite has been flying under the radar. (The Critical Metals Report) TCMR: Maybe that‘s partly because the Profile: lithium-ion battery isn‘t called the graphi-The Critical Metals Report: Ryan, as some- te-lithium-ion battery. Ryan Fletcher is a director ofone who knows the graphite business, what RF: True. These batteries have two parts, Zimtu Capital Corp., a Vancouver-would you recommend to investors? the cathode and the anode. Lithium is headquartered public investmentRyan Fletcher: The space should be on the cathode. The anode is graphite. It‘s company that creates, invests ininvestors radars. Demand for graphite become clear that these batteries will po- and grows resource increasing quite rapidly. Not only are wer not only electric vehicles but also our Fletcher has been responsible forhistoric uses growing, but new applications tools, our phones, our laptops, our electro- identifying and sourcing projects,are adding demand. A number of profes- nics, our toys. They all use these batteries, structuring companies and invest-sional investors, analysts and researchers and that‘s going to be a big demand driver. ments, marketing group companieshave studied the fundamentals, and they and business development. He is asee the potential. But it‘s not yet front and TGMR: How about in fuel cells? graduate of the University of Britishcentre on the investment community‘s RF: In the same way, graphite is used in Columbia Okanagan with a Bache-radar. It should be. plating and is an important component lor of Arts in economics. Before of a fuel cell. A lot of the same things ITCMR: In terms of graphite‘s historic uses, joining Zimtu in 2009, Fletcher said about lithium-ion batteries also applyit‘s used in tennis rackets, golf clubs, and worked as a consultant for publicly to vanadium redox batteries. Vanadium‘sis important to the steel industry. What are listed mineral exploration and deve- been getting a lot of attention. It takes asome of graphite’s properties and historic lopment companies and a boutique lot of graphite to produce these batteriesapplications? private investment firm focused on as well.RF: Graphite is an excellent conductor of the mineral exploration sector.heat and electricity and is corrosion and TCMR: Are the batteries used in vehiclesheat resistant. It‘s a strong substance. It‘s such the Chevy Volt, Nissan Leaf and Teslalight. All of those qualities make it valuab- Roadster lithium-ion-graphite batteries?le. It‘s used in the steel industry. The auto- RF: Yes. (...) The Leaf, the new hatch- back version of the Volt, and the Tesla are RF: Yes. The natural graphite market ismotive industry is also a major consumer. about 1.2 million tons per year (Mtpa)Because of its heat resistance, it‘s also now all based on the lithium-ion-graphite battery. right now. Broadly speaking, that marketused in crucible liners and so forth. Those consists of two different forms of graphite.are big applications. I‘ve been speaking with a lot of experi- enced people in this space, people who The historic applications primarily useTCMR: Would you say that demand in closely follow battery technology, such the amorphous graphite, whereas some ofthese historic markets is increasing? as Byron Capital, which has done a lot of these emerging technologies and appli-RF: Absolutely. The historic markets are good work in this space. Battery technology cations use flake graphite. About 40%still growing and you can‘t forget about goes through phases and a certain tech- of that 1.2Mt market is flake and 60%them. The demand from these markets is nology typically can reign for some 10–20 amorphous, so the flake graphite market isincreasing say at a rate of 3-5% per year, years. It appears that the mass adoption just over 400,000 tons per year. Some ofbased largely on global economic growth of lithium-ion batteries has just started to the players in the industry anticipate thatfueled by Asia, India, Russia and Brazil. take shape and will dominate for a long just one application alone, the lithium-But now we are seeing graphite‘s appli- time. Graphite is so critical for that. ion battery, could use well over 1.6 Mt ofcation in lithium-ion batteries, fuel cells flake graphite per year by 2020, whichand nuclear technology, and in plastics TCMR: Those changes in automotive tech- is more than threefold the entire currentand composite frames that find their way nologies seem to moving faster than ever market. Even if the market doubles, that‘sinto products such as the Boeing Co.‘s before. Consumers want the most current 800,000 tons of graphite per year by(NYSE:BA) new Dreamliner as well as wind technology, whether it‘s a cell phone, a 2020. A large-scale producer puts out onlymills. These applications will add a big, laptop or a vehicle, and it‘s exciting to about 20,000 to 40,000 tons per year,incremental demand push to the market. watch demand pushing these new techno- which means a lot of new mines and a lotThis is all new demand. logies into manufacturing. of opportunity. -4-
  5. 5. insideInterview CONTINUEDTCMR: And is it China that dominates thismarket?RF: Yes. China controls 70% of the currentgraphite supply. Over the last 10 years,China has become dominant in a numberof commodities, based on blessings ofgeology and other circumstances. BehindChina on the supply side is India, Canadaand Brazil. Over the last couple of years,China has imposed value-added taxes, Graphite exposed in the Mineralogical Museum, Bonn, Germany Source: Ra‘ike Wikipedia.orgexport taxes and licenses. (...)TCMR: Where can we expect to find new Focus acquired the Lac Knife Graphite modities that you produce and sell into asources of graphite? Where is it most abun- Project from a subsidiary of IAMGOLD big global market at the market price. Withdant, and in what types of geology? Corp. (IMG:TSX; IAG:NYSE). This was a minor and industrial commodities, suchRF: You have to look to geological ter- known deposit located in northern Québec, as graphite, the explorers, developers, andrains with metamorphic activity. Canada, with feasibility work completed prior to producers work with end-users. (...)I canparticularly Ontario and Québec, has some NI 43-101. The project was discovered assure you that the end-users from Koreagreat terrain, as do Brazil and India. Be- in the 1980s and at one point was being and Japan will be eager for these types ofcause graphite prices have been kept low evaluated through a joint venture between partnerships (...). They‘re all dependent onover the past decade or so, there had been Graftech Inc. and Ballard Power Systems China right now.almost zero incentive to explore for, fund Inc. (BLDP:NASDAQ), which designs andor develop new graphite projects. That‘s all TCMR: Are there any other names in this manufactures clean energy hydrogen fuelchanging right now, prices have increased space? cells. Focus has now come out with athree fold in the last few years. I think RF: As I mentioned, I figured the best gra- 43-101 resource that shows an attractivethe best graphite deposits have yet to be phite deposits haven‘t been found yet. The grade—about 16%. (...)found. There‘s potential for new discove- disincentive of low prices meant that notries in many jurisdictions. TCMR: What about Northern Graphite? much money has been raised nor dollars(...) There‘s also a premium for deposits RF: Northern Graphite, which just went pu- spent looking for graphite. That‘s startingoutside of China, which will be more valu- blic in April 2011, holds a 100% interest to change. One company that I quite likeable to end users from Japan, Korea, Euro- in Bissett Creek, a graphite project located is Orocan Resources Corp. (OR:TSX.V),pe, and the U.S. —all major consumers. close to infrastructure in southern Ontario. which has acquired a portfolio of pro- The interesting thing about the Bissett jects in Ontario and Québec. But moreTCMR: So for investors who want to parti- Creek deposit is that a large proportion of importantly, the company added Antoinecipate in the upswing of demand and the it is large- or jumbo-flake graphite—the Fournier to the team. A geologist, he wascompelling future for graphite, who are stuff that gets end-users and the battery part of the field team that discovered thesome players worth investigating? manufacturers excited. (...) project that Focus is advancing, Lac Knife.RF: The two most well known public com- (...) Also, early this month, Lomiko Metalspanies, both of which have projects in Ca- TCMR: Do you expect Northern Graphite to Inc. (LMR:TSX.V) acquired 100% interestnada, are Focus Metals Inc. (FMS:TSX.V) develop end-user agreements? in the Quatre Milles Graphite Property inand Northern Graphite Corp. (NGC:TSX; RF: Sure. It‘s important for everyone southwest Québec, a project that Graphi-NGPHG:OTCQX). Great teams are leading looking at this space to remember that gra- cor Resources explored in the late 1980s.these companies. phite isn‘t like gold or copper or oil—com- And in Saskatchewan, Strike Gold Corp. (SRK:TSX.V) is moving forward on a pro- ject where Superior Graphite had done dril- WHY GRAPHITE? now being used in electric vehicles. While ling and geological and metallurgical work Graphite is an excellent conductor of heat this has created a great deal of excitement, 20 years ago. These assets—(...) which and electricity and has the highest natural the investment community is only now had to halt when China took its grip on strength and stiffness of any material. There- beginning to focus on other materials used the market —are being snapped up right fore, it is often used in thermochemistry. in Li-ion batteries and by weight, graphite is Additionally, Graphite has the lightest weight the second largest component. In fact, there now, the market has changed and they are of all reinforcements. Industrial demand is more than 20 times more graphite than attractive again. (...) for graphite has been growing due to the lithium, in a lithium ion battery. TCMR: It looks as if the graphite space is ongoing industrialization of emerging eco- Graphite is in a much stronger position than nomies. However; the incremental demand lithium carbonate as it is the anode material developing some traction (...). It‘s been will eventually be created by a number of of choice for most battery designs. Only flake called one of the „quintessential wonder green initiatives including Li-ion batteries, graphite which can be upgraded to 99.9% materials.“ fuel cells, solar energy, semi conductors, and purity can be used in Li-ion batteries. The RF: I agree. It‘s very early, but with all the nuclear energy. Many of these applications process is expensive and wastes 70% of factors we discussed at play, I see a lot of have the potential to consume more graphite the feedstock flake graphite. As a result, opportunity for the investment community. that all current uses combined. Li-ion bat- spherical graphite currently sells for between teries are smaller, lighter and more power- $4-6,000/tonne or twice the price of high TCMR: Thank you so much, Ryan. ful than traditional batteries. As a result, quality flake graphite. (SOURCE). most portable consumer devices use Li-ion To read the complete interview, please visit: batteries. Additionally, Li-ion batteries are Quelle: Wikipedia & Chris Berry -5-
  6. 6. insideGuest ArtiCle„We are Passionate about Exploration in TURKEY“Pasinex Resources ltd. sees great opportunity in the underexplored countryPasinex Resources is a new force in junior the key companies now active in Turkey in-mining and exploration companies, with a clude Teck Resources, Inmet Mining, Eldo-special focus on exploration in Turkey. Pasi- rado Gold and Koza Gold. However, Turkeynex Resources Limited has recently gone is still relatively under explored, particular-public with a reverse takeover of a CNSX lis- ly with modern exploration methodologies.ted vehicle called Triple Dragon Resources. Why is this?The takeover put in place a new manage- The unique moment in time is aboutment team and a new focus, with the focus the recent changes in mining regulationsbeing base and precious metal exploration in Turkey. For a long time, mining claimsand mining in Turkey. could be held with very little exploration being carried out on that property. This by Steve Williams permitted “speculation” with these mining properties. Last year, the government chan-T he new management team of Steve ged the regulations with expectation that Williams, Clinton Smyth and Baris the title holders commit to exploration on Yildirim all have their roots in mi- their title or, if not, they would lose their ning, with technical knowledge and title. The net effect of this change in thisexperience of about 80 years total relevant regulation is to make a lot of property now,industry experience between the three of or in the immediate future, available forthem. Complementing, this technical team other parties either through staking, auc- tions or private deals. The government has profile:is the Zimtu Capital Corp team that bringsto Pasinex the business management commenced a process of license auctions. Steve Williams is the President andknow-how particularly in market, legal and An auction currently running (from January CEO of Pasinex Resources Limited.reporting areas. Together, this makes for a to May 2012) has 1700 property licenses Mr. Williams graduated with a Ba-very strong team for execution of the Pasi- available for general bidding. chelor of Applied Science (Extrac-nex business strategy. Pasinex Resources is very focused tive Metallurgy) from the Western Pasinex Resources is focusing on on these opportunities. Pasinex has set up Australian School of Mines and anbase and precious metal opportunities in an office in Ankara and has started networ- MBA from Tulane University. HeTurkey. Why has Pasinex chosen this stra- king in Turkey to let people know that we has worked in the mining industrytegic focus? The answer to this is that there are now in the market and looking for the since 1976 in milling operations inIs a unique ‚moment in time‘ opportunity right type of opportunities. Since October Australia and Canada. He workedthat is presented for mining and exploration 2011 the company has started systemati- 20 years with SGS Lakefieldin Turkey. cally reviewing many mining exploration Research in Canada and Chile in Turkey is a stable secular democracy titles and is in ongoing negotiations with both metallurgical project manage-with the roots of the current republic going property owners to acquire a number of pro- ment and business management,back to (much revered) President Ataturk perties of particular interest. The Pasinex finally becoming Managing Directorin the 1930’s. Turkey has adopted a pro- focus at the moment is on property acquisi- for SGS Canada, a company withbusiness approach and, having had a long tion and building our network in Turkey. It is about 1300 employees in Canada.history of mining (going back to ancient ci- expected that by the second half of 2012, Steve has authored many technicalvilizations), it is also a country that wants Pasinex will start to focus on early explorati- papers and in 2004 he became ato see responsible mine development. Also on of some of the properties that should be CIM Distinguished Lecturer and inTurkey has a wealth of talented professio- in our portfolio by then. 2008 a CIM Fellow, for his work innals to meet business needs. So, Pasinex Resources represents a geometallurgy. Turkey has been growing fast, with great opportunity for investors to participa-recent GDP growth being around 9% per te in the still relatively underexplored baseannum. A tour of Istanbul or Ankara, will and precious metal opportunities in Turkey. Pasinex has a technical based management Main Office:show how much high-rise development isgoing on in these cities. The government is team, has identified underexplored opportu-very focused on infrastructure in the coun- nities in Turkey and has a plan to aggressi- 1450 – 789 West Pender Streettry to support business growth, spending vely go after these targets. • Vancouverbillions of dollars on new road and transpor- BC, V6C 1H2tation systems. For further information please contact the tel: +1 604 681 1568 Turkey has great geology being on author at fax: +1 604 681 8240the border of a number of important tecto-nic plates. Turkey has well known deposits Steve Williamsof chrome, borax, gold and base metals. President and CEOThe country has seen, in the last 10 years, Pasinex Resources Limiteda development of a number of new gold mi-nes such as Ovacik and Kislidag. Some of -6-
  7. 7. insidePress Monitor tion and forward development of numerous velopment in the battery business alone, we supply chains. Product innovation using think focus on the strategic and critical me- strategic metals leads to development of tals sector in 2012 and beyond will be an advanced intellectual property which ulti- exciting area of discovery to say the least. mately leads to supply chain and job crea- The surprises in the future will on balance tion, one of the sustaining elements of the be beneficial to the Discovery Investor and Middle Class. inventor alike. For this reason alone, investors must This is an abstract, visit this URL for full article:Resource Clips: In With Zijin have a clear view the supply, demand and Giant Backs Equitas BC Copper- uses of strategic and critical metals. Despi- MNs_Thursday_January_19_2012.pdfGold Project te the uncertain near-term outlook for glo- published on January 3rd, 2012 bal industrial growth, we are believers that innovation will drive increased productivity by Greg Klein and demand for critical and strategic me-“Climb the mountain”—for Equitas Resour- tals. In particular, we maintain a favorableces (TSXV:EQT) the challenge is both me- outlook for lithium, graphite, uranium, andtaphorical and literal. While his drill crew manganese. We don‘t invest with a three-thinks nothing of a late autumn hike up a month horizon, firmly believing that thesenorthern BC mountainside, President and metals will be in demand for decades toDirector Jay Roberge is more likely to sca- come based on the world‘s needs to elec-le figurative obstacles in the boardrooms of trify and provide cheap reliable and afforda- Resource Investor: Dodd-Hong Kong. As a result, the company’s Day ble electricity. Frank, Australian CutsCopper-Gold Porphyry Project now has the Despite the rather muted reception Threaten Tantalumbacking of Zijin Mining Group, China’s big- electric vehicles have received, batteries of all shapes and sizes promise to be a lar- Investing in African Mining Indaba 2012gest gold producer. Online Review Among his company’s other advan- ge part of the next generation technologies spurred on by innovation. Late last year, the published on February 10th, 2012tages, Roberge includes its relationshipwith shareholder Zimtu Capital (TSXV:ZC). largest manufacturing facility in the world by Philip Burgert“We work out of Zimtu’s office and share for lithium-ion batteries was opened in Rus- sia – a joint venture called Liotech - bet- Markets for tantalum metals used prima-back-end resources with a number of other ween a Russian and a Chinese firm. rily in electronics could face short sup-companies. So there’s a lot of expertise we The goal of producing a lower-priced plies by as early as 2014 in part becausecan rely on to cut down on costs.” Although lithium-ion battery is the Holy Grail and can of reduced Australian primary productionthe Day Project is very much early stage, make vehicle electrification, currently unaf- and impending restrictions from the USRoberge sees an extremely busy 2012 on fordable to the majority of the population, Dodd-Frank Wall Street reform law aimeda number of fronts. Fundamental Research a reality. at curbing trade of illegal and artisanalwill release its initial report on Equitas. Ro- Graphite plays a critical role in the produced minerals from the Democraticberge plans to spend more time in Hong manufacture of lithium-ion batteries. It is Republic of Congo that are the source ofKong and wants to recruit additional ba- used in the anode and its strength and abi- the metal.“Consequently the establishmentckers. “Quite frankly, the Asian market un- lity to conduct electricity make it ideal as a of new tantalum sources outside the DRCderstands the value of our partnership with battery component. However, only the large we believe is imperative,” Lara Smith, ma-Zijin better than the market here,” he says. flake high purity graphite can be used in naging director of Johannesburg-based Core With more capital, Roberge hopes batteries, which appears to be a potential Consultants told the Investing in Africa Mi-to acquire more projects—and to do so chokepoint for supply in the near future. ning Indaba conference here this week.quickly. Which is very optimistic indeed, Only 40% of the graphite produced globally The Dodd-Frank law enacted in Julyespecially given a very modest market cap is of the large flake high purity type. 2010 requires that companies who consu-of $4.9 million. That hardly deters Rober- Synthetic graphite is also used in me minerals from conflict zones, in parti-ge. “People are going to realize Zijin Mining batteries (produced from petroleum coke) cular tantalum, tin, tungsten and gold fromhad good reason to invest in a little junior but it‘s currently much more expensive to the DRC, have to now show provenance ofon the TSX Venture.“ manufacture than the mining and refining these minerals and demonstrate that theyThis is an abstract, visit this URL for full article: of large flake high purity graphite. There- are not conflict or “blood” minerals. Underzijin/ fore deposits outside of China which have the act companies are expected to be gran- potential to produce large flake, high purity ted a grace period of 12 months to either graphite with simple metallurgy are an area demonstrate provenance or find alternative of our Discovery focus going forward. supply sources, Smith said. “This meansMORNINGNOTES: THE FUTURE We are not aware of any current gra- that full implementation of this legislation phite mining in the United States and only will most likely not come into effect beforeIS BRIGHT FOR STRATEGIC ME- the end of 2013,” she said. “Subsequently minimal graphite production in Canada,TALS although that may change in the near fu- cheaper coltan from the DRC and Rwanda published on January19th, 2012 ture as a crop of promising juniors explorers may continue to fill the supply gap and sta- by Chris Berry, MBA such as Northern Graphite, Focus Metals bilize prices.” This is an abstract, visit this URL for full article: and Orocan advance to production.China plans to own next-generation indus- With the hundreds of billions of dol- dodd-frank-australian-cuts-threaten-tantalumtries through a strategy of vertical integra- lars globally pouring into research and de- -7-
  8. 8. insideZimtu NewS Zimtu Update TSX.v: ZC . FSE: ZCT1 . WKN: A0RDR9 SHOrt Facts: Shares Outstanding: ~10 mio. Shares Fully Diluted: 11.4 mio. 52 Week High: 2,28 CAD 52 Week Low: 0,50 CAD Market Cap.: ~11.1 mio. CAD Cash & Securities: ~13.0 mio. CAD Portfolio Analysis: Top 5 Positions: 58.15% Western Potash (TSX: WPX) 19,26% Triple Dragon (CNSX: TDN) 19,18% Commerce Res. (TSX.V: CCE) 9,57% Quantum Rare (TSX.V: QRE) 5,62% Equitas Res. (TSX.V: EQT) 4,52% Market Value of Top 5: ~8.5 mio. CAD Total Positions: 58 *As of Febuary 20th, 2012Zimtu´s Latest Transactions in The Graphite SPace Strike Graphite Corp. September 01, 2011 TSX.V: SRK Strike Gold Corp. is pleased to announce that it has Property sold: Deep Bay & Simon Lake, signed an agreement to acquire a 100% interest in Saskatchewan the Deep Bay East and Simon Lake Graphite Pro- Shares earned: 1,500,000 perties both located in northern Saskatchewan. Cash component: staged 162.500 CAD Time frame: 4 months NSR: 3% Standard Graphite Corp. November 21, 2011 TSX.V: SGH Orocan Resource Corp. (Since Dec. 2011 Standard Property sold: Black Donald & Little Graphite) is pleased to announce it has signed a Byron, Ontario Binding Agreement to acquire a 100% interest in Shares earned: 1,000,000 three graphite properties in Ontario, Canada inclu- Cash component: 12,500 CAD ding the Black Donald and Little Bryan Properties. Time frame: 24 months NSR: 2% Lomiko Metals Inc. January 05, 2012 TSX.V: LMR Lomiko Metals Inc. is pleased to announce that Property sold: Quatre Miles, Québec it has signed an agreement to acquire a 100-per- Shares earned: 2,000,000 cent interest in the Quatre Milles Graphite Property Cash component: 25.000 CAD located in southwestern Quebec. time frame: 24 months NSR: 2% Strike Graphite Corp. TSX.V: SRK February 14, 2012 Property sold: Wagon, Québec Shares earned: 1,000,000 Strike Graphite Corp. (TSXv: SRK) (the “Compa- Cash component: staged 375.000 CAD ny” or “Strike”) is pleased to announce that it has Time frame: until 12months after TSX signed an agreement to acquire a 100-per-cent approval interest in the Wagon Graphite Property located in NSR: 3% southwestern Quebec. -8-