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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 100% interest in the Claims for the following consideration:
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a cash payment of $432,778.50 to be paid to the Company within 180 days following closing of the Transaction ("Closing");
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an aggregate of 2,000,000 common shares in the capital of the Purchaser ("DiscoveryShares") to be issued to the Company upon Closing; and
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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.