Kaizen and ITOCHU Agree to Jointly Explore Kaizen's Newly Acquired Canadian
Copper-Gold Porphyry Projects
NEWS RELEASE TRANSMITTED BY Marketwired
FOR: Kaizen Discovery Inc.
TSX VENTURE SYMBOL: KZD
JULY 9, 2014
Kaizen and ITOCHU Agree to Jointly Explore Kaizen's Newly Acquired
Canadian Copper-Gold Porphyry Projects
ITOCHU to Fund Exploration Program at the Aspen Grove Project and Hold an
Interest in the Tanzilla Project
VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 9, 2014) - Matthew Hornor,
President and Chief Executive Officer of Kaizen Discovery Inc. (TSX
VENTURE:KZD), today announced the signing of a preliminary agreement with
strategic partner ITOCHU confirming that ITOCHU will partner with Kaizen and
provide C$4.25 million to fund corporate and exploration activities on
Kaizen's newly acquired Aspen Grove and Tanzilla copper-gold porphyry
projects in the Canadian province of British Columbia.
Kaizen gained control of the Aspen Grove and Tanzilla projects through an
all-share transaction completed yesterday that gave Kaizen 100% ownership of
Vancouver-based explorer West Cirque Resources.
Highlights of the Kaizen-ITOCHU preliminary agreement:
-- ITOCHU will acquire a 40% interest in the Aspen Grove Project in
exchange for a cash payment of C$4 million;
-- ITOCHU will acquire an initial, 15% interest in the Tanzilla Project for
a cash payment of C$250,000, subject to the consent of Freeport-McMoRan
of Canada Limited, with an option to acquire up to a further 10%
interest in the project;
-- ITOCHU and Kaizen will form a technical committee to manage the
exploration program at the Aspen Grove Project, with initial activities
beginning later this year;
-- Kaizen will be the operator of the Aspen Grove Project;
-- ITOCHU will be entitled to offtake from the Aspen Grove and Tanzilla
projects in proportion to its ownership interests; and
-- ITOCHU will use reasonable endeavours to arrange project financing and
support from Japanese financial institutions for the development of the
Aspen Grove and Tanzilla projects.
Mr. Hornor said that the joint venture on the two Canadian projects is another
indication of the significance of Kaizen's developing business
relationship with ITOCHU, a leading trading house and supplier of metals to
"Kaizen is implementing its strategy of sourcing highly prospective
projects, leveraging its financial and technical advantages and delivering on
the opportunities available in this challenging market. By demonstrating its
capacity to identify, acquire and finance highly attractive opportunities,
Kaizen is distinguishing itself in the field and is building a case for
continued growth and expansion."
Mr. Hornor added, "We are thankful for ITOCHU's continued support and
look forward to further opportunities to continue working together on our
growing portfolio of international mineral projects."
Tokyo-based ITOCHU originally invested C$5.1 million in Kaizen in February of
this year and currently holds a 5.7% stake in the company following completion
of the acquisition of West Cirque Resources. A framework agreement entered into
between Kaizen and ITOCHU in January established a collaborative working
arrangement under which both companies agreed to evaluate opportunities to
explore and develop selected, high-quality, international mineral projects. A
copy of the agreement is filed under Kaizen's profile at www.sedar.com.
ITOCHU's investment under the preliminary agreement is subject to, among
other conditions, receipt of all required approvals of the TSXV; the completion
of definitive investment agreements; and the completion of ITOCHU's
remaining due diligence investigations, which are expected to be concluded in
the very near term.
West Cirque's portfolio of exploration properties in British Columbia
Since 2011, West Cirque has been focused on advancing exploration on several
porphyry copper-gold prospects in British Columbia's main porphyry belts:
the Early Mesozoic arcs of the Stikine and Quesnel terranes.
In the southern Quesnel terrane, West Cirque holds a large land position in the
Aspen Grove copper belt, located midway between the Highland Valley and Copper
Mountain mines. Initial exploration at Aspen Grove in 2013 resulted in the
discovery of a significant porphyry copper-gold target at the Par prospect.
At the Tanzilla Project, in the northern Stikine terrane, West Cirque has an
agreement with Freeport-McMoRan of Canada that permits Freeport to earn an
initial 51% interest in the project, although no interest has been earned to
West Cirque's common shares ceased trading on the TSX Venture Exchange on
July 8, 2014. The company now is a private Kaizen subsidiary.
To view the map accompanying this press release, click on the following link:
About Kaizen Discovery
Kaizen is a Canadian technology-focused, mineral exploration company that was
formed in late 2013 through a combination of Concordia Resource Corp. and
assets acquired from HPX TechCo Inc., a 100%-owned subsidiary of High Power
Exploration Inc. With its collaboration agreement with ITOCHU of Japan and
access to HPX TechCo's proprietary geophysical technology, Kaizen's
long-term growth strategy is to work with Japanese partners to identify,
explore and develop high-quality mineral projects that have the potential to
produce and deliver minerals to Japan's industrial sector.
More information on Kaizen is available at www.kaizendiscovery.com.
ITOCHU is one of the leading Japanese trading corporations, with approximately
130 bases in 66 countries. ITOCHU engages in domestic trading, import/export,
and overseas trading of various products such as textile, machinery, metals,
minerals, energy, chemicals, food, information and communications technology,
realty, general products, insurance, logistics services, construction, and
finance, as well as business investment in Japan and overseas.
More information on ITOCHU is available at www.itochu.co.jp/en.
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.
Statements in this news release that are forward-looking statements are subject
to various risks and uncertainties concerning the specific factors disclosed
here and elsewhere in Kaizen's periodic filings with Canadian securities
regulators. When used in this news release, words such as "will, could,
plan, estimate, expect, intend, may, potential, should," and similar
expressions, are forward-looking statements. Information provided in this
document is necessarily summarized and may not contain all available material
Forward-looking statements may include, without limitation, statements
regarding the completion of definitive documentation for the investment by
ITOCHU, receipt of TSXV approvals, satisfaction of conditions to the
implementation of the investment, and the acquisition by ITOCHU of 40% of the
Aspen Grove project and up to 25% of the Tanzilla project, and other statements
that are not historical facts. Forward-looking statements are based on a number
of assumptions and estimates that, while considered reasonable by management
based on the business and markets in which Kaizen operates, are inherently
subject to significant operational, economic and competitive uncertainties and
Although Kaizen has attempted to identify important factors that could cause
actual results, performance or achievements to differ materially from those
contained in the forward-looking statements, there can be other factors that
cause results, performance or achievements not to be as anticipated, estimated
or intended. There can be no assurance that such information will prove to be
accurate or that management's expectations or estimates of future
developments, circumstances or results will materialize. As a result of these
risks and uncertainties, the proposed transaction could be modified, restricted
or not completed, and the results or events predicted in these forward-looking
statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking
statements. The forward-looking statements in this news release are made as of
the date of this release. Kaizen disclaims any intention or obligation to
update or revise such information, except as required by applicable law, and
Kaizen does not assume any liability for disclosure relating to the other
company mentioned herein.
FOR FURTHER INFORMATION PLEASE CONTACT:
Kaizen Discovery Inc.
President and CEO
Kaizen Discovery Inc.
INDUSTRY: Manufacturing and Production - Mining and Metals
-0- Jul/09/2014 11:23 GMT
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