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Zimtu Capital Corp. announces involvement in Quantum's acquisition of large Niobium - Rare Earth Carbonatite complex in Nebraska
Zimtu Capital Corp. announces involvement in Quantum's acquisition of large Niobium - Rare Earth ...
About this update from Zimtu Capital Corp.
[{"type":"text","content":"\n\n\n\n May 4, 2010 (Canada NewsWire Group) -- Zimtu Capital Corp. (TSXv: ZC) (FSE: ZCT1) (the "Company" or "Zimtu") is pleased to announce its involvement in Quantum Rare Earth Developments Corp's ("Quantum") (TSXv: QRE) (FSE: BR3) acquisition of the Elk Creek Niobium-Rare Earth Element Carbonatite Project located in southeastern Nebraska.\nQuantum has agreed to purchase all of the issued and outstanding common shares of 859404 BC Ltd. ("859404") a private British Columbia Company. In consideration for the common shares of 859404, Quantum will pay a total of $500,000 to 859404 and issue one common share of Quantum for each common share of 859404 issued and outstanding, subject to the acceptance of the TSX Venture Exchange.\nAs of April 26, 2010, 859404 had approximately 19.2 million shares outstanding; of which Zimtu owned 2.6 million shares. Zimtu currently holds 1.6 million shares of Quantum. Following the completion of the Elk Creek property transaction and the Australian Rare Earth transaction announced March 12, 2010, Zimtu will hold a total of approximately 4.7 million shares of Quantum.\nThrough its Nebraskan subsidiary, Elk Creek Resources Corp., 859404 secured individual agreements to acquire the mineral rights to the Elk Creek Carbonatite Project. The agreements are in the form of a five-year pre-paid lease, with an option to purchase the mineral rights at the end of the lease. The Elk Creek Carbonatite Project was held under a similar type of option agreement by the previous operator Molycorp, Inc. in the 1970's and 1980's. Zimtu was instrumental in the organization and management of 859404 from its inception in August, 2009 to the successful completion of the acquisition of the Elk Creek Carbonatite Project.\n"We are pleased to announce the completion of this transaction with Quantum, the third completed with the company since late 2009. Zimtu has aided and supported the development of Quantum and will be a significant shareholder of the company," stated David Hodge, President of Zimtu. "The Elk Creek Carbonatite Project was highly sought after and took significant focus and effort from our team to acquire. The project has the potential to become a significant global resource of niobium and rare earth elements."\n\nElk Creek Carbonatite Project\n\nThe Elk ...