Aug 20 2014
B. Matthew Hornor, President and Chief Executive Officer of Kaizen Discovery Inc., 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 Japanese 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."