Nov 20 2014
B. Matthew Hornor, President and Chief Executive Officer of Kaizen Discovery Inc., is pleased to announce that Kaizen has successfully completed the acquisition of all of the outstanding securities of Tundra Copper Corp. in exchange for common shares of Kaizen.
Assay results from a recent channel sampling program across zones of volcanic hosted high-grade copper mineralization are expected in the next few days. The channel sampling program was aimed at verifying historical grades of surface showings.
"This is another significant step in the strategy of positioning Kaizen for future growth. Kaizen's long-term growth strategy is to work with ITOCHU Corporation under the existing framework agreement, as well as other 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," Mr. Hornor said.
Tundra Copper was a private British Columbia mineral exploration company formed in 2013 by experienced professional geologists to explore for high-grade copper mineralization in the Coppermine District of Nunavut, near the shore of Canada's Arctic Ocean.
Tundra Copper has staked more than 310 square kilometres in the Coppermine District, near the town of Kugluktuk, covering multiple showings within a 2,500-square-kilometre area. Historical data from these showings indicate that widespread high-grade copper mineralization occurs in volcanics and that the area possesses the geological potential to host significant tonnage. More information on Tundra Copper is available at www.tundracopper.com.
In October 2014, Kaizen staked claims and applied for prospecting permits covering 3,320 additional square kilometres prospective for sediment-hosted stratiform copper, near Tundra Copper's holdings in the Coppermine District. Tundra's staked claims and permit applications together with recent staking and permit applications by Kaizen bring total holdings in this project area to a potential 4,240 square kilometres.
Under the terms of the acquisition, originally announced November 12, 2014, each Tundra Copper security holder received 0.70 of one Kaizen common share for each Tundra Copper security held. Tundra Copper security holders now own approximately 4.2% of the outstanding common shares of Kaizen.
Approximately 4.2 million Kaizen shares issued to certain principals of Tundra Copper are subject to a two-year release schedule, with 25% being released every six months from the closing date. The remaining approximately 2.4 million Kaizen shares issued to Tundra Copper security holders are subject to a resale restriction ending six months from the closing date.
Kaizen also has entered into a debt settlement agreement, pursuant to which Kaizen proposes to issue 250,000 Kaizen shares to certain debtor shareholders of Tundra Copper at a deemed price of $0.37 per share. All of the Kaizen shares issued to the debtors will be subject to the same two-year release schedule described above.