Nov 19 2014
B. Matthew Hornor, President and Chief Executive Officer of Kaizen Discovery Inc., announced today that Kaizen has entered into a share purchase agreement with Alecto Minerals Plc., providing for the sale to Alecto Minerals of Kaizen's Kerboulé gold project in Burkina Faso.
As consideration for the sale of its 100% interest in the Kerboulé gold project, which covers 399.5 square kilometres in two contiguous licences near Burkina Faso's northern border, Kaizen will receive 54,996,857 shares (worth approximately C$619,000) of Alecto Minerals. Alecto is an Africa-focused, gold and base metals exploration company headquartered in London, UK, and listed on the AIM stock exchange.
The agreement also provides that Alecto will issue to Kaizen a further US$1.5 million in Alecto shares or cash (at Alecto's election), if any of the following occur:
- Alecto announces a JORC Inferred Resource or an equivalent resource estimate of a minimum of one million ounces of gold at a minimum cut-off of 0.5 grams per tonne (g/t) gold at Kerboulé; or
- Alecto announces a JORC Proven Reserve or an equivalent resource estimate of a minimum of 250,000 ounces of gold at a minimum cut-off of 0.5 g/t gold at Kerboulé; or
- a minimum of 75,000 ounces of gold are produced from the Kerboulé Project.
"Kaizen's divestiture of the Kerboulé gold project is aligned with its strategy to build a portfolio of highly prospective base-metal projects within the Pacific Rim," Mr. Hornor said.
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 entities 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.
About Alecto Minerals
Alecto Minerals plc is an Africa-focused, gold and base metal exploration company, quoted on AIM, with exploration projects in Mali, Ethiopia and Mauritania.
More information on Alecto is available at www.alectominerals.com.