Kaizen Discovery and ITOCHU Agree to $4 Million Funding Deal to Explore Aspen
Grove Copper-Gold Porphyry Project in Southwestern B.C.
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/18/14 -- B.
Matthew Hornor, President and Chief Executive Officer of Kaizen
Discovery Inc. (TSX VENTURE: KZD), today announced the signing of a
definitive project financing agreement with strategic partner ITOCHU
Corporation of Japan. ITOCHU has formally agreed to partner with
Kaizen and provide C$4 million to fund corporate and exploration
activities on Kaizen's newly acquired Aspen Grove copper-gold
porphyry project in British Columbia. The transaction is expected to
close on August 22, 2014.
Kaizen plans to commence diamond drilling at Aspen Grove's Par
prospect in September 2014 to follow up on recently mapped
mineralization and alteration in addition to historic drill results
from the 1960s when copper mineralization was discovered by a
previous operator (see West Cirque Resources news release dated
January 8, 2013).
Kaizen acquired its 100% interest in the 11,237-hectare Aspen Grove
Project upon completion of its acquisition of West Cirque Resources
in an all-share transaction that closed last month.
Aspen Grove is located between the Highland Valley and Copper
Mountain mines at the southern end of British Columbia's copper-rich
Quesnel Trough. The project's proximity to Vancouver, year-round road
access and on-site grid power will help enable Kaizen to efficiently
test widespread copper mineralization found in several targets.
Highlights of the Kaizen-ITOCHU agreement:
-- ITOCHU will acquire a 40% equity interest in an indirect wholly-owned
Kaizen subsidiary that holds the mineral titles comprising the Aspen
Grove Project in exchange for a cash payment of C$4 million;
-- ITOCHU and Kaizen will form a technical committee to manage the
exploration program at the Aspen Grove Project, with initial activities,
including drilling, beginning in September 2014;
-- Kaizen will be the operator of the Aspen Grove Project;
-- ITOCHU will be entitled to off-take from the Aspen Grove Project in
proportion to its ownership interest; and
-- ITOCHU will use reasonable endeavours to arrange project financing and
support from J
apanese financial institutions for the development of the
Aspen Grove Project.
"We are thankful for ITOCHU's continued support and look forward to
further opportunities to work together on our growing portfolio of
international mineral projects," said Mr. Hornor.
"Kaizen is systematically identifying highly prospective projects
strategically located along the Pacific Rim and leveraging its
financial and technical advantages to distinguish itself in this
challenging market. We believe our strategic positioning allows us to
decisively act on attractive opportunities, which bodes well for
Kaizen's continued growth and expansion."
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. A framework agreement entered into between Kaizen and ITOCHU
in January 2014 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
ITOCHU's investment under the Aspen Grove Project financing agreement
is subject to receipt of all required approvals of the TSX Venture
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 information.
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
Kaizen Discovery Inc.
B. Matthew Hornor
President and CEO
Kaizen Discovery Inc.
Executive Vice President, Corporate Development
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