Ryan Fletcher Corporate Development for Zimtu Capital Corp
Introduction
Based in Vancouver Canada, Zimtu Capital Corp. is an investment company publicly traded on the Frankfurt Exchange (symbol “ZCT1”) and the Toronto Venture Exchange (symbol “ZC”). The Company’s focus is acquiring, investing in, developing and growing exploration companies in the Natural Resource sector. To understand more on how the Company approaches its business, in addition to familiarizing ourselves with the Company’s current state of affairs, we had the opportunity to speak with Ryan Fletcher Corporate Development for Zimtu.
Dual Business Approach
Fletcher explains Zimtu has two approaches to developing its business:
1. Zimtu is involved in property transactions; staking properties where Zimtu has a new geological idea. They stake a property and then match it with a public company. Once they are successful in finding a match, they receive equity in that company along with cash.
2. The second approach to new business is coming up with an idea, or finding a management team, where Zimtu has the opportunity to work with the company in its early stages to take the property or company from private to public.
The goal is to get shareholders into the company for zero cost in a property transaction deal and very low cost when creating a new company.
‘The success of a junior company varies from case to case and a key is to get your shareholders in, or get your shares, at the lowest possible cost that you can,’ Fletcher explains.
Successes Stories
Saskatchewan Rare Earth Property
Recently, Zimtu staked a rare earth property for approximately $10,000 in Saskatchewan called Archie Lake. The property, which had elevated rare earths discovered in the 1980s, proved to be a successful transaction.
‘We found a partner, Butler Resources and received a million shares and $20,000. The total transaction value is about $500,000, so we turned $10,000 dollars into $500,000,’ Fletcher shared.
Butler Resources is moving ahead and doing quite well in getting positive results with the project.
Commerce Resources
Maybe one of the greatest successes on Zimtu’s list of achievements is the Company’s involvement in the formation of the successful Commerce Resource Corp.
‘Currently that company has $15M in their treasury. Very well funded,’ stated Fletcher in describing the Company.
Commerce Resource Corp. is focused on the exploration of tantalum, niobium and other rare metals. The Company currently has a project in British Columbia, the Blue River Tantalum-Niobium project, which is moving toward production, and another exploration project in Quebec known as the Eldor carbonatite.
As mentioned, Commerce is focused on exploration of tantalum and niobium, both of which are rare metals in demand commercially. Tantalum is used in cell phones, laptops and other electronic devices, and niobium is in demand because of its strengthening ability. When added to steel, a 2% alloy of niobium will increase the strength of the steel by 3 times its original strength, which indicates why, Fletcher points out, ‘it’s become a valuable commodity for things like bridges, oil & gas pipelines, (and) lighter and stronger frames for automobiles.’
Currently, Commerce is on their flagship property, the Blue River project, where they are in the process of performing a scoping study which, as Fletcher describes, ‘is basically a business plan or their earliest indication of the economics on the project. The Company is evaluating both an open pit and an underground situation.’
Commerce is described by Fletcher as a ‘very well funded and very well followed company’.
Evolving Gold Corp. & Ultra Lithium
Other notable successes for Zimtu include the formation of Evolving Gold Corp. as well as its involvement with the acquisition of the Berland River Lithium Brine Properties with Ultra Lithium Inc. Evolving Gold Corp has proved successful in the exploration of gold projects in Nevada and Wyoming, and the Berland River Brine Properties, located in Alberta, Canada, has proved successful in the exploration of lithium.
Financing
‘Typically, the majority of the money we raise is directly through our team or our group,’ Fletcher explained as he notes the Company does use brokerage firms from time to time, but ‘overall the funds are generated from our own, or our team’s, efforts and it would be broken apart by about 50% European shareholders and investors and 50% Canadian or North American investors.’
Specifically, the funding for Commerce Corp came from, as described by Fletcher, ‘a very loyal and supportive shareholder base both within Canada and in Germany.’
Fletcher adds that ‘about 50% of the funds that we have brought in through Commerce, or a large proportion of them, have come through German or European investors.’
David Hodge president Zimtu and Commerce Resources
The Strength in Leadership
It’s no secret the success of a company starts at the top, and this holds true for Zimtu Capital Corp., as well. David Hodge, who is also president of Commerce Resources, brings 15 years of experience in the management and financing of publicly traded companies to the table. Other key leaders include Directors Shaun Ledding (corporate finance, regulatory compliance and marketing) with over 10 years of experience in natural resources marketing and finance, Sven Olsson with more than eight years of experience in resource investment and finance, and Patrick Powers with more than 15 years of experience as a director for public companies and stock market professional.
Market Improvement & Doing Business Again
In conclusion, Fletcher states, ‘The amount of success that not only our group has had but the market has had in the past six to eight months has been great to see. We’ve gone from a very, very low point in the market to rebound from that. It’s amazing how the weather can change within eight months, and we’re glad that the market has improved and the pace of business has increased quite dramatically.’