Stockwatch

Zimtu Capital Corp (2)
Symbol	ZC
Shares Issued	13,494,177
Close 2014-10-06	C$ 0.47
Market Cap	C$ 6,342,263
Recent Sedar+ Documents

Phoenix Metals to acquire frac sand project from Zimtu

2014-10-07 11:17 ET - News Release

See News Release (C-PHC) Phoenix Metals Corp

Casey Subject: PHC NR Oct 7 Please see attached for immediate dissemination. Thank you. File: PHC NR Oct 7 - Final.doc October 7, 2014 News Release TSX-V Symbol: PHC PHOENIX METALS ACQUIRES PEACE RIVER FRAC SAND PROJECT SURROUNDING LAPRAIRE GROUP'S CANADIAN SILICA PRODUCING MINE Vancouver, B.C.: Phoenix Metals Corporation ("Phoenix" or the "Company") (TSX-V Symbol: PHC) is pleased to announce that it has entered into a Binding Letter of Intent (LOI) with Zimtu Capital Corp. and DG Resource Management Ltd. (the "Vendors") to acquire a 100% interest in four metallic and industrial minerals permits in northwestern Alberta, totaling approximately 24,363 hectares, collectively known as the "Peace River Frac Sand Project". The permits are known to host the Paddy Member non-marine sand of the St. John Group. Testing will be required to determine if the Paddy Member within the permits contains the quality and quantity of silica sand suitable for hydraulic fracturing and if it that product is economically extractable. The permits surround the claims of the 500,000 tonne per year capacity silica sand mine privately owned the Laprarie Group and operated by Canadian Silica Industries. (http://goo.gl/Zk7KLK) Terms of the Acquisition: - payment of $10,000 on the signing of the LOI; and - payment of a further $15,000 and the issuance of 2.25 million common shares on the required TSX Venture Exchange acceptance of the transaction. The Vendors will retains a 2% royalty (GORR) on production (1% of which can be purchased for $1,000,000 at the option of the Company). Peace River Frac Sand Project: The Project is located north of the community of Peace River, Alberta, adjacent to the Peace River Frac Sand Quarry, which is owned and operated by Canadian Silica Industries. It extends for approximately 40 km along the Peace River, straddling both the East and West banks where the target unit is exposed. Within the region, the Lower Cretaceous Paddy Member of the Peace River Formation is currently mined for frac sand. The Paddy Member is a friable sand unit representing a shoreline facies deposited in a fluvial environment, with a thickness up to 16.5 m (7.7 m average). The sand grains are almost entirely colorless quartz and the beds are dominantly uncemented, which is ideal as a frac sand proppant in hydraulic fracturing. The Peace River Frac Sand Quarry of Canadian Silica Industries reportedly has a total annual capacity of 500,000 tonnes of silica sand. It is in proximity to infrastructure including rail and roads, and located near the community of Peace River. Additionally, it is located close to the Horn River, Montney, and Cardium shale gas basins, and is central to the Frac Sand market within northwestern Alberta and northeastern British Columbia. The technical information in this news release was approved by Mr. Stephen Wallace, P. Geo, a Qualified Person under NI 43-101 regulations The Company's focus is on developing raw materials for the Frac Proppants industry. The Company is currently working to acquire assets to serve the developed North American market and further assets that are proximal to large underdeveloped oil and gas resources around the world that require hydraulic fracking proppants. The priority is on raw materials assets with known quantity and strong logistics and/or infrastructure. Proppants have been critical to the major expansion of oil and gas production in North America. Sand Proppants according to Accenture Research, represent 90% of the unit volume and 70% of expenditures in the US proppant market. Market research from Freedonia Group, concluded that North American proppant demand has risen from $250 million in 2002 to nearly $5 billion in 2012 and overall North American demand is projected to reach over 100 billion pounds valued at $9.4 billion in 2017. "As the shale boom drives North American upstream activity, demand for sand used in hydraulic fracturing is expected to spike by 24 percent per year," according to a report published by Houston-based PacWest Consulting Partners. Demand for proppants is expected to slightly outpace supply causing moderate price increases. PacWest said "a continued shortage of transportation infrastructure will lead to significant price increases". Financing: Phoenix will continue the Company's non-brokered private placement of up to 10.0 million units at a price of five cents per unit ($0.05) to raise proceeds of up to $500,000. Each unit will consist of one common share and one common share purchase warrant (the "Unit Warrants") with each Unit Warrant entitling the holder to acquire one additional common share at a price of 10 cents ($0.10) per share for one year from closing. The Unit Warrants are subject to the right of the Company to accelerate the exercise period for the Unit Warrants if the common shares of the Company trade above 20 cents ($0.20) for a period of 10 consecutive trading days. The proceeds of the private placement will be allocated toward general working capital purposes. The Company may pay finders' fees on the private placement proceeds to certain parties in accordance with the policies of and subject to the approval of the TSX Venture Exchange. The Company will further pursue Flow Thru financing for the fast-track development of the Peace River Frac Sand Project. On behalf of the Board of Directors of Phoenix Metals Corporation "Brian Leeners" Brian Leeners, CEO & Director For further information please contact: Michael Dehn, President Tel: 647-477-2382 michael@avantimac.com Or Brian Leeners, CEO and Director Tel: 604-862-4184 bleeners@nexvu.ca Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-Looking Information: This news release contains certain forward-looking information. All information, other than information regarding historic fact that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future is forward-looking information. Forward-looking information contained in this news release includes, but may not be limited to the progress and success of the Company's projects, including the Company's goals and business plan with respect to the frac sand business and the future demand for frac sand. The forward-looking information contained in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. With respect to the forward-looking information contained in this news release, the Company has made assumptions regarding, among other things, the Company's future working capital requirements, the Company's ability to generate sufficient cash flow from operations and access existing credit facilities and capital markets to meet its future obligations, goals and business plan, future prices for frac sand and by-products and future demand for processed frac sand. The forward-looking information contained in this news release is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including the need to obtain required approvals and permits from regulatory authorities, the volatility of frac sand and by-product prices and demand and geological, technical, drilling and processing problems. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, the Company disclaims any obligation to update or modify such forward-looking information, either because of new information, future events or for any other reason. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.