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.
"David Hodge"
David Hodge
President & Director
Phone: 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 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 Securities Commission.
SOURCE Zimtu Capital Corp.