Zimtu Capital Corp. announces transaction with Rainmaker Mining Corp. for
Peace River Frac Sands Property in Alberta, Canada
VANCOUVER, Feb. 5, 2014 /CNW/ - Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the
"Company" or "Zimtu") is pleased to announce that the Company and one of its
prospecting partners have signed an agreement with Rainmaker Mining Corp.
(TSXv: RMG) ("Rainmaker") whereby Rainmaker can earn a 100%-interest in the
Peace River Frac Sands Property located in north-western Alberta, Canada.
For its participation in the transaction, Zimtu will receive staged cash and
share payments from Rainmaker as follows: (i) $5,000 on signing; (ii) 375,000
common shares on acceptance by the TSX Venture Exchange ("TSXv"); (iii) $5,000
and 375,000 common shares on completion of a successful exploration program on
or before September 15, 2014. Zimtu's partner will receive cash and share
consideration equal to that of Zimtu. The vendors will collectively retain a
2% royalty on production, 1% of which can be purchased by Rainmaker for
$1,000,000. The transaction is subject to acceptance by the TSXv.
Peace River Frac Sands Property, Alberta Canada:
The Peace River Property is located north of the community of Peace River,
adjacent to the Peace River Frac Sand Quarry, which is owned and operated by
Canadian Silica Industries. It extends for approximately 40 km along the Peace
River, straddling both the East and West banks where the target unit is
exposed. Within the region, the Lower Cretaceous Paddy Member of the Peace
River Formation is currently mined for frac sand. The Paddy Member is a
friable sand unit representing a shoreline facies deposited in a fluvial
environment, with a thickness up to 16.5 m (7.7 m average). The sand grains
are almost entirely colorless quartz and beds are dominantly uncemented, which
is ideal as a frac sand proppant in hydraulic fracturing.
The Peace River Frac Sand Quarry reportedly has a total annual capacity of
500,000 tonnes of silica sand. Rainmaker is encouraged by the acquisition
given its proximity to infrastructure such as rail and roads, and location
near the community of Peace River. Additionally, it is located in close
proximity to the Horn River, Montney, and Cardium basins, and is central to
the frac sand market within northwestern Alberta.
High priority exploration targets have been identified along the river banks
from historic reports and maps. Rainmaker plans to commence exploration on the
property with an extensive channel sampling program, as soon as snow
conditions permit. Using sample results in conjunction with historic data and
public information such as well logs, reports, drill core and cuttings, a
follow-up auger program is anticipated to take place within the first half of
2014 to delineate locations with the best combination of quality,
distribution, thickness, tonnage and accessibility.
Frac Sands Market:
Frac sand, a specific type of silica sand, is a durable, round grain,
crush-resistant material produced for use in the hydraulic fracturing process
(more widely known as fracking). The sand is a proppant material, which is
used to "prop" open fractures made in shale rock during the fracking process.
This allows oil, natural gas and natural gas liquids trapped in rock to flow
to the well surface.
The Canadian frac sand market currently uses approximately 3.5 million tons of
sand per year, while the U.S. market goes through roughly 30 million tons,
both of which have enjoyed a spike in demand coinciding with the widespread
use of horizontal drilling. In 2014, sand suppliers are expecting double-digit
growth, based on projected meters drilled and well counts. US based Preferred
Sands entered Canada in December 2011 with the $200-million acquisition of
Winn Bay Sand in a deal that included one mine in Wisconsin and one in
Saskatchewan (Hanson Lake). The demand for frac sands has risen sharply in the
last few years in response to numerous shale plays developing in many parts of
the US and Western Canada and could benefit further from proposed LNG
terminals along the Pacific coast and emerging gas and oil fields under
exploration and development.
The optioned claims were acquired by Zimtu Capital Corp. and its partner by
staking. Zimtu, along with its prospecting partners, continue to evaluate and
acquire prospective resource properties to make available for sale or joint
venture. As part of the Company's business, Zimtu provides mineral property
project generation and advisory services and helps to connect companies with
mineral properties of interest.
The technical information in this news release has been prepared and reviewed
on behalf of the Company by Patrick Kluczny, P.Geol., of Dahrouge Geological
Consulting Ltd., a Qualified Person pursuant to National Instrument 43-101.
About Zimtu Capital Corp.
Zimtu Capital Corp. is a public investment issuer that invests in, creates and
grows natural resource companies thereby providing a way for shareholders to
indirectly participate and profit in the public company building process. The
Company also provides mineral property project generation and advisory
services helping to connect companies to properties of interest.
Zimtu Capital trades on the TSX Venture Exchange under the symbol "ZC" and the
Frankfurt Stock Exchange under the symbol "ZCT1."
On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.
President & Director
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 any statements regarding beliefs, plans,
expectations or intentions regarding the future.
Forward-looking statements in this news release include that Rainmaker can
earn a 100%-interest in the Peace River Property located in Alberta, Canada;
that in consideration for its interest, Zimtu will receive staged cash and
share payments from Rainmaker, that Zimtu's partner will receive cash and
share consideration equal to that of Zimtu; that the vendors will collectively
retain a 2% Royalty on the Property. 1% of which can be purchased for C$1
million; that Rainmaker plans to commence exploration on the property as soon
as snow conditions permit; that the demand for frac sands could benefit
further from proposed LNG terminals along the Pacific coast and emerging gas
and oil fields under exploration and development; and that Zimtu, along with
its prospecting partners, continue to evaluate 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 from those in such forward-looking statements. Risks
and uncertainties include, but are not limited to, economic, competitive,
governmental, environmental and technological factors that may affect the
Company's operations, markets, products and prices. Readers should refer to
the risk disclosures outlined in the Company's Management Discussion and
Analysis of its audited financial statements filed with the British Columbia
SOURCE Zimtu Capital Corp.
For more information please visit the corporate website
athttp://www.zimtu.com or contact:
Matt Sroka Shareholder Services Toll Free: 1.877.377.6222 Phone: 604.681.1568
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CO: Zimtu Capital Corp.
ST: British Columbia
-0- Feb/05/2014 13:45 GMT
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