VANCOUVER, March 11, 2014 /CNW/ - Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the "Company" or "Zimtu") is pleased to announce that the Company has signed an agreement with Canadian Metals Inc. (CSE: CME) ("Canadian Metals") whereby Canadian Metals can earn a 100%-interest in the Longworth and Kinney High Purity Silica Properties located in British Columbia, Canada.

For its participation in the transaction, Zimtu will receive staged cash and share payments from Canadian Metals as follows: (i) C$50,000 and 1,000,000 common shares within five business days following, and subject to, the closing of a private placement of CME common shares for minimum gross proceeds of $500,000 (hard dollars) and $500,000 (flow-through) (the "Financing Closing"); (ii) 1,000,000 common shares on that day which is 12 months from the date of the Financing Closing, and; (iii) 1,000,000 common shares 24 months from the date of the Financing Closing. Zimtu will retain a 2% Royalty on the Properties. A finder's fee will be payable with respect to the transaction pursuant to the policies of the CSE.

Longworth Property

The Longworth Property, consisting of 17 claims totalling 1,160 hectares, covers a band of quartzite on Bearpaw Ridge, on the east side of the Fraser River, about 85 km east of Prince George, British Columbia.

A sequence of clastic sediments, limestone and volcanics equivalent to the Lower Silurian Nonda Formation, outcrop along the ridge. The quartzite is comprised of one main unit, up to 400 m thick, and three thinner units, all of which are characterized as massive, fine-grained, equigranular quartzite with silica values mainly in excess of 99.5% (Quartermain 1986).

The property is accessible by logging roads and is less than 4 km from the Canadian National Railroad mainline and power lines suitable for a quarry type mining operation. The current property covers recently lapsed claims that were held by Silver Standard Resources Inc. ("Silver Standard") since 1977. Silver Standard had completed detailed metallurgical work on the contained silica mineralization which yielded positive characteristics for a feed source for silicon metal smelting (Quartermain 1986). Silver Standard was incorporated in 1948 as a B.C. focused multi commodity mining company and has been recently letting its portfolio of legacy properties to expire in the current market environment to focus on their South American projects.

Kinney Property

The Kinney Property consists of two individual, continuous claims totaling 518 hectares located approximately 70 km's south-east of Mackenzie, British Columbia, adjacent to Mt. Kinney. The majority of the visible outcrop on the property was held by Silver Standard historically and was host to a drilling program by the company in July 1975. It is known that Silver Standard encountered quartzite at 12'-298 feet and quartzite and dolomite from 298-358 feet. In 1975, Silver Standard was engaged in a joint venture on the project with Hanna Mining Ltd. whom produced crude historic economic studies for the project.

Canadian Metals will be compiling all of the historic exploration information available for the Longworth and Kinney Properties in anticipation of initial surface exploration program in the spring/summer of this year.

High Purity Silica

High purity silica is prized by the silicon industry who use it in the production of silicon metal. Silicon-based materials, including silicones, can be formulated to deliver a wide range of products from more durable construction materials; faster, smarter electronic devices; to more efficient solar panels and wind turbines. They are also used in healthcare and cosmetic products.

High purity silica can be used to make silicon and ferrosilicon. Silicon is used in the manufacturing of aluminum alloys, where iron, calcium and phosphorus are critical elements; silicones and silanes, where calcium and aluminum are critical elements; and semiconductor silicon (polysilicon) which remains the fastest-growing segment of the metallurgical silicon market.

As part of Zimtu's business, the Company provides mineral property project generation and advisory services and helps to connect companies with mineral properties of interest.

The technical information above has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the Company by Donald Théberge Eng., M.B.A, a qualified person.

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 Canadian Metals can earn a 100%-interest in the Longworth and Kinney Properties located in British Columbia, Canada; that in consideration for its interest, Zimtu will receive staged cash and share payments from Canadian Metals; that Zimtu will retain a 2% Royalty on the Properties; and that Canadian Metals will be compiling all of the historic exploration information available for the Longworth and Kinney Properties in anticipation of initial surface exploration program in the Spring/Summer of this year.

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.

Copyright 2014 Canada NewsWire

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