Zimtu Capital Corp. Announces Entry Into Claims Sale Agreement
Zimtu Capital Corp. (TSXV:ZC)(FSE:ZCT1) has entered into a definitive agreement to sell two packages of mining claims, known as the Eagle Lake and Whitefish Lake claims, to Discovery Lithium Inc. The Claims, located 350 km northwest of Thunder Bay, Ontario, cover approximately 61,093 hectares. The transaction terms include:
1. A cash payment of $432,778.50 within 180 days of closing
2. 2,000,000 common shares of Discovery Lithium Inc. upon closing
3. A 1% net smelter returns royalty interest in future minerals produced
The deal is subject to approval from the TSX Venture Exchange and acceptance by the Canadian Securities Exchange. The issued shares will have a four-month hold period following the closing.
- Sale of 2,923 mineral claims covering 61,093 hectares in Northwestern Ontario
- Cash payment of $432,778.50 to be received within 180 days of closing
- Acquisition of 2,000,000 shares in Discovery Lithium Inc.
- 1% net smelter returns royalty on future mineral production from the claims
- Divestment of potentially valuable mining claims
- Transaction subject to regulatory approvals, which may delay or prevent completion
- 4-month hold period on received shares, limiting immediate liquidity
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC / ACCESSWIRE / July 16, 2024 / Zimtu Capital Corp. (TSXV:ZC)(FSE:ZCT1) (the "Company" or "Zimtu") announces that it has entered into a definitive agreement to sell two separate packages of mining claims generally known as the Eagle Lake claims and the Whitefish Lake claims, respectively (together, the "Claims"), located approximately 350 km northwest of Thunder Bay, Ontario (the "Transaction"). The Claims are comprised of 2,923 mineral claims covering approximately 61,093 hectares (~150,964 acres) in Northwestern Ontario.
Terms of the Transaction
Pursuant to sale agreement dated July 15, 2024 between the Company and Discovery Lithium Inc. (the "Purchaser"), the Company has agreed to sell a
a cash payment of
$432,778.50 t o be paid to the Company within 180 days following closing of the Transaction ("Closing");an aggregate of 2,000,000 common shares in the capital of the Purchaser ("DiscoveryShares") to be issued to the Company upon Closing; and
the Purchaser will grant to the Company a
1% net smelter returns royalty interest in the future minerals produced from the Claims upon achieving commercial production.
In addition to the above, the Purchaser has agreed to assume the Company's obligations with respect to certain payments owed or may be owed, as applicable, to other parties in connection with a claims sales agreement and a net smelter returns royalty agreement previously entered into by the Company relating to the Claims.
The completion of the Transaction remains subject to, among other things, the Company obtaining the approval of the TSX Venture Exchange (the "TSXV"), if necessary, and acceptance of the Canadian Securities Exchange (the "CSE") as it pertains to the Purchaser. The Discovery Shares to be issued on Closing will be subject to a hold period expiring four months and one day following Closing.
About Zimtu Capital Corp.
Zimtu Capital Corp. is a public investment issuer that aspires to achieve long-term capital appreciation for its shareholders. Zimtu Capital companies may operate in the fields of mineral exploration, mining, technology, life sciences or investment. The Company trades on the TSX Venture Exchange under the symbol "ZC" and Frankfurt under symbol "ZCT1". For more information, please visit https://www.zimtu.com.
On Behalf of the Board of Directors
ZIMTU CAPITAL CORP.
"Sean Charland"
Sean Charland
President & Director
Phone: 604.681.1568
NEITHER THE 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 NEWS RELEASE.
This news release contains forward‑looking statements, which include any information that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future. Forward looking statements in this press release include that the Closing will occur, including the payment of the cash and share consideration and the grant of the net smelter royalty.
These statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed, implied by or projected in the forward‑looking information or statements. Important factors that could cause actual results to differ from these forward‑looking statements include, but are not limited to: risks associated with the business of the Company or the businesses of the companies that the Company has invested in, including, without limitation, the natural resource exploration industry; changes in commodity prices as the Company has investments in natural resource exploration issuers; changes in interest and currency exchange rates; geopolitical risk and social unrest; changes in general economic conditions or conditions in the financial markets; and economic, competitive, governmental, environmental and technological factors which may affect the Company's operations, investments, markets, products and share price; that the Transaction may not occur as intended or at all; and that the CSE or the TSXV may not approve the Transaction.
Except as required by law, the Company does not intend to revise or update these forward‑looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events.
SOURCE: Zimtu Capital Corp.
View the original press release on accesswire.com
FAQ
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