Zimtu Capital Corp. (TSXV:ZC,FWB:ZCT1) and three prospecting partners have signed an agreement with Strike Graphite Corp. (TSXV: SRK) whereby Strike can earn a 100%-interest in the Wagon Graphite Property located in southwestern Quebec.
As quoted in the press release:
The Wagon Property consists of three separate claim blocks totaling approximately 3,000 hectares situated within the vicinity (approx. 15 km east) of Timcal’s Lac des Iles Graphite Mine, 150 km northwest of Montreal. Lac des Iles is the largest of two Canadian graphite producers. It has been in production for over twenty years and produces graphite products of various sizes and purities.
For its participation in the transaction, Zimtu will receive staged cash and share payments from Strike as follows: (i) $3,750 on signing; (ii) $3,750 and 125,000 common shares on acceptance by the TSX Venture Exchange (“TSXv”); (iii) $5,000 and 125,000 common shares 6 months from the date of TSXv acceptance; and (iv) 125,000 common shares 12 months from the date of TSXv acceptance. Zimtu’s three prospecting partners will each receive cash and share considerations equal to that of Zimtu. The vendors will collectively retain a 2% Net Smelter Royalty on the properties. During the period which is 12 months from the date of TSXv acceptance, Strike will complete a minimum of $100,000 of exploration on the property.