Zimtu Capital Corp. Closes Sale of Eagle Lake and Whitefish Lake Mineral Claims to Discovery Lithium Inc.
Rhea-AI Summary
Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) has closed the sale of two mining claim packages to Discovery Lithium Inc. The claims, known as Eagle Lake and Whitefish Lake, are located 350 km northwest of Thunder Bay, Ontario, covering 61,093 hectares. The transaction, which closed on September 17, 2024, includes:
1. 2,000,000 common shares of Discovery Lithium
2. A 1% net smelter returns royalty on future mineral production
3. A $432,778.50 cash payment due within 180 days
Discovery Lithium also assumes Zimtu's obligations regarding certain payments to other parties. The acquired shares are subject to a four-month hold period.
Positive
- Sale of 2,923 mineral claims covering 61,093 hectares in Northwestern Ontario
- Received 2,000,000 common shares of Discovery Lithium
- Obtained a 1% net smelter returns royalty on future mineral production
- Additional cash payment of $432,778.50 due within 180 days
- Transfer of payment obligations to other parties to Discovery Lithium
Negative
- Four-month hold period on received Discovery Lithium shares limits immediate liquidity
- Cash payment of $432,778.50 is not immediate, with a 180-day payment window
Zimtu Capital Corp. (TSXv: ZC; FSE: ZCT1) (the "Company" or "Zimtu") announces that it has closed the previously announced sale to Discovery Lithium Inc. (the "Purchaser") of two separate packages of mining claims, located approximately 350 km northwest of Thunder Bay, Ontario , generally known as the Eagle Lake claims and the Whitefish Lake claims (together, the "Claims"). Pursuant to a claims sale agreement dated July 15, 2024 between the Company and the Purchaser (the "Agreement"), the Company agreed to sell a
Terms of the Transaction
The Transaction closed on September 17, 2024, and the Company received the following consideration on Closing for the Claims:
an aggregate of 2,000,000 common shares in the capital of the Purchaser ("DiscoveryShares"); and
a
1% net smelter returns royalty interest in the future minerals produced from the Claims upon achieving commercial production.
Pursuant to the Agreement, a cash payment in the amount of
In addition, the Purchaser has assumed the Company's obligations with respect to certain payments owed 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 Discovery Shares are 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.
View the original press release on accesswire.com
FAQ
What mineral claims did Zimtu Capital Corp. (ZTMUF) sell to Discovery Lithium Inc.?
When did Zimtu Capital Corp. (ZTMUF) close the sale of its mineral claims to Discovery Lithium Inc.?
What compensation did Zimtu Capital Corp. (ZTMUF) receive for the mineral claims sale?
How many hectares do the mineral claims sold by Zimtu Capital Corp. (ZTMUF) cover?
