Zimtu enters option deal for Monument Peak project

Executive Summary

• Zimtu Capital Corp. has entered into a definitive option agreement to acquire Global Energy Metals Corp.'s 50% interest in the Monument Peak Copper-Silver Project in Idaho.
• The transaction involves aggregate consideration of $650,000 in cash and approximately $750,000 in common shares, payable in staged installments over four years based on milestones.
• Upon exercise, Global retains a 1% NSR royalty, with a buyback option available for Zimtu. Zimtu is obligated to spend $1 million on exploration within 12 months of closing.

Key Details

• Target Asset: Monument Peak Copper-Silver Project, located in Lemhi County, Idaho, on Bureau of Lands Management (BLM) lands.
• Asset Composition: 84 contiguous, unpatented lode mining claims totaling approximately 689.77 hectares.
• Historical Context: Hosts two historical copper mines (Jackson and Hungry Hill) with limited production in the early 1900s; high-grade copper-silver plus/minus gold mineralization confirmed along a 3+ km structural trend.
• Consideration Structure:
  • Cash: Aggregate payments of $650,000.
  • Equity: Common shares with an aggregate value of approximately $750,000.
  • Payment Schedule: Staged installments over a four-year period, subject to technical or time-based milestones.
• Royalty Terms:
  • Global retains a 1.0% Net Smelter Returns (NSR) royalty upon exercise.
  • Zimtu may repurchase 0.5% of the NSR for $1 million if exercised within five years, or $2 million thereafter.
• Exploration Obligations: Zimtu must incur $1 million in exploration expenditures within 12 months of closing (subject to extensions for permitting/access delays).
• Operational Control: Zimtu acts as the exclusive operator during the option period.
• Shareholder Restrictions:
  • Statutory hold period: 4 months and 1 day from issuance.
  • Voluntary hold period: 12 months from issuance for securities issued to Global.
• Regulatory Approval: Subject to approval of the TSX Venture Exchange.

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