Last week, Zimtu Capital Corp. announced the successful completion of the acquisition stage of the Elk Creek Niobium-Rare Earth Project in Nebraska and a transaction with Quantum Rare Earth Developments Corp (TSXv:QRE) (FSE:BR3). 

Photo: Elk Creek, Nebraska - Population 116

Elk Creek is a significant transaction for our company and shareholders.  Last week, just before the transaction was announced one of the parties involved explained that the acquisition of the project “reads like a plot for an Indiana Jones movie.”

Photo: Dan Mershon Landman Wolcott LLC
            Erin Chutter, Quantum Rare Earth
            Ryan Fletcher, Zimtu Capital

The Elk Creek acquisition began in August of 2009; when Zimtu along with several partners decided to pool capital and talents together to acquire the project which was described by the US Geological Survey as having the “potential to be one of the largest global resources of niobium and rare earth elements.”

Photo: Erin Chutter, Quantum Rare Earth
             Dan Mershon, Wolcott LLC
             Lavon Heidemann, State Senator Nebraska

For the unfamiliar, niobium is primarily used as an alloy for the production of harder and greater load-bearing steel.  It is used, for example, in the manufacture of bridges, buildings, oil and gas pipelines, and car frames.  Rare earth elements, on the other hand, are used in the production of a number of modern devices from cell phones and laptops to hybrid cars and flat screen televisions. 

The project was previously explored by Molycorp, Inc. in the 1970s and 80s and is host to a historic resource (non 43-101 compliant) of 39 MT of 0.82% Niobium (Nb2O5).  For comparison, North America’s only niobium mine, IAMGold’s Niobec has proven and probable reserves of 32 MT of 0.56% Nb2O5.  For more information read the News Release dated May 4, 2010.

Photo: Landowners Elda and Bev Beethe and old Molycorp Core Shack

What made the acquisition of the project so interesting was that over thirty separate landowners from the community of Elk Creek had to execute lease agreements and that each agreement was dependent on another.   

After many twists and turns, nine months, several competitors and many trips to Nebraska later, the acquisition was complete.  The project took significant focus and effort from our team and partners; many new friendships and relationships were built in Nebraska, Elk Creek, North America, and Europe. 

Photo: Geologists Neil McCallum and Mike Cathro examining old Molycorp Core

Shortly after the announcement was made the story was picked up on the cover of the largest newspaper in the State of Nebraska the Omaha World-Herald.  A link to the story “High-tech Buried Treasure” is included below:

High-tech Buried Treasure
by Paul Hammel
Omaha World-Herald
May 5, 2010

Peter Dickie, President of Quantum was also invited to be interviewed by BNN; Canada’s largest 24-hour business news network.  Link below:

View Video Clip

The Elk Creek Project and our ownership in Quantum represent a significant source of value for our shareholders.  The acquisition of the project was a great experience; many contributed to its success and strong friendships and relationships were created.  As they say “nothing good comes easy.”  With the acquisition complete, we look forward to the exploration and development of the project.

Sincerely,

Ryan Fletcher
Corporate Development
Zimtu Capital Corp.
Suite 1450 - 789 W Pender St .
Vancouver , BC V6C 1H2
Tel: 604.681.1568
TF: 1.877.377.6222
Cell: 604.999.5603
Fax: 604.681.8240
http://www.zimtu.com