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.