Vancouver-based Zimtu Capital
Corp. (TSX-V; ZC) (FSE: ZCT1) offers investors a
unique approach relating to investments in Canada's
junior mining sector. While there are a multitude of
companies available for direct share investment and
several houses offering shares based on revenues from
royalties, Zimtu features two distinct means of
acquiring potentially profitable positions.
Zimtu's first approach is on the transactional side.
They acquire an inventory of properties, across various
commodities that are suitable for advancement through
the value-creation process via exploration and
development. With these properties, the Zimtu team
focuses on sourcing suitable management teams and
companies that have the ability to move the projects
forward while offering support with capital raises and
marketing. Once a property transaction is completed with
another company, Zimtu receives an equity position
within the new company, usually at a seed-level price.
The company then incorporates these shares into their
own asset base with the goal of participating in any
market value improvement as these projects progress with
the goal of increasing share value as Zimtuís stake in
their company holdings commensurately improves.
The company has published a normalized and theoretical
mining share price history chart, available on the
corporate website, which clearly illustrates an
important guideline for maximizing potential profits.
According to the chart, a typical mining share offers
maximum profit potential during the very earliest stages
of a company's formation prior to its IPO and during the
value-building stage as geologic information such as IP
surveys, geologic mapping and drill results are conveyed
to the public.
The second approach, and one geared to attracting
investors into Zimtu's shares, is to provide company
shareholders with the opportunity to acquire their own
personal positions in these newly-formed companies at
share prices normally available only to start-up
partners, most frequently well below IPO pricing. This
can be of particular value to moderate-sized investors
who otherwise might have little opportunity to
participate in new companies at prices normally
available only to corporate insiders.
Through this method, Zimtu has participated in several
companies which have provided substantial rewards to
investors including names such as Western Potash Corp.,
Commerce Resources Corp., Kiberan Nickel, and Evolving
The company is focused on establishing assets in
particular segments of mining where the profit
opportunities appear to be particularly promising. In
the past this has meant involvement in specialty and
rare earth mineral exploration as well as potash
exploration and development. One of their current
focuses is in the developing field of graphite
exploration. Zimtu also attempts to concentrate their
investments in politically secure nations such as Canada
although occasional investments have been made in
nations such as Turkey and Brazil. However, countries
noted for political instability or excessive taxation
and regulation are usually avoided.
Company information may be obtained directly via e-mail
or by accessing the company's website at
A complete, in-depth study will be completed shortly
further consultation with company management.