Zimtu, Partner option Labrador Graphite Property to Olympic Resources for $60K, 3M shares, 2% Royalty
Zimtu Capital Corp TSXV:ZC and Olympic Resources Ltd TSXV:OLA announced an option in which Olympic may earn a 100% interest from Zimtu and one of its prospecting partners in the Flora Lake Graphite Property in Labrador. Under the agreement Olympic pays Zimtu and its prospecting partner each $15,000 on signing, $15,000 and 750,000 shares on TSXV acceptance, 250,000 shares six months after TSXV acceptance, 250,000 shares 12 months after TSXV acceptance and 250,000 shares 14 months after TSXV acceptance. The vendors retain a 2% net milling royalty of which Olympic may buy half for $1 million.
The 4,104-hectare Flora Lake Property was previously explored in 1953, when several graphite occurrences were described as “graphitic bands up to 10 feet [3.05 metres] in the feldspar-quartz biotite gneiss… The graphite occurs as disseminated flakes to a solid seam up to 2 inches [5.08 centimetres] thick.” The property is eight kilometres from Labrador City and is accessible via Trans-Labrador Highway 500. The property is transected by power lines and railways that service the nearby iron mines.
Olympic plans to begin exploration by compiling historic geologic work, then undertaking EM surveys, surface mapping, sampling, trenching and diamond drilling. The target is an open-pittable, crystalline flake graphite deposit similar to Quebec graphite deposits such as Focus Metals’ TSXV:FMS Lac Knife Project.
Olympic also announced the appointment of Dean Nawata as President/CEO/Director. Additionally Olympic announced a private placement of one million units at $0.10 for proceeds of $100,000 to be used for exploration and general working capital.
Zimtu Capital Corp
Olympic Resources Ltd
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by Greg Klein