Zimtu closes Copperline property sale to Star Copper

Executive Summary

• Zimtu Capital Corp. has closed the sale of its 100% interest in the Copperline property in north-central British Columbia to Star Copper Corp.
• The transaction involves a combination of cash, equity, and potential milestone bonuses, with total potential consideration exceeding $2.1 million plus royalties.
• The transaction involves non-arm's-length parties, with shared directors and CFOs between Zimtu and Star Copper.

Key Details

• Transaction Status: Closed sale of the Copperline property.
• Property Details: 100% interest in seven mineral claims totaling 2,687 hectares, located near Skutsil Knob in the Driftwood range, approximately 120 km north-northeast of Smithers, B.C.
• Base Consideration:
  • Cash: Aggregate $350,000, paid as $100,000 on closing and $250,000 on the first business day six months after closing.
  • Equity: Aggregate 500,000 common shares of Star Copper Corp., issued as 200,000 shares on closing and 300,000 shares upon completion.
• Milestone Bonus:
  • Trigger: Publication of a NI 43-101 Form 43-101F1 mineral resource estimate disclosing >500 million lbs of copper or >15 million oz of silver.
  • Value: $1.5 million total ($750,000 cash + $750,000 in common shares).
  • Share Pricing: Bonus shares issued at a deemed price equal to the 10-day volume-weighted average price (VWAP) of Star Copper shares on the Canadian Securities Exchange.
• Royalty Interest:
  • Zimtu receives a 2% Net Smelter Return (NSR) royalty on future production upon commercial production.
  • The NSR is freely assignable.
  • Purchaser has the option to repurchase 1% of the NSR within five years of closing for $1 million.
• Related Party Disclosure: The transaction is non-arm's-length. Sean Charland is a director of both Zimtu and Star Copper; Jody Bellefleur is the CFO of both entities.
• Hold Period: Consideration and bonus shares are subject to a hold period of four months and one day following issuance.
• Fees: No finders' fees paid.

Notable Quotes

• None provided in the text.