Kaizen Discovery completes acquisition of Tundra CopperVANCOUVER, CANADA — B. Matthew Hornor, President and Chief Executive Officer of Kaizen Discovery Inc. (TSXV: KZD), 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.
Kaizen's disclosure of a technical or scientific nature in this news release has been reviewed and approved by John Bradford, M.Sc., P.Geo. and Chief Geologist for Kaizen, who serves as a Qualified Person, as defined under National Instrument 43-101.
About Kaizen Discovery
Kaizen is a Canadian technology-focused, mineral exploration and development company. Kaizen entered into a collaboration agreement with ITOCHU Corporation of Japan (market capitalization of approximately $20 billion; ticker symbol 8001: Tokyo) in January 2014 and has access to HPX TechCo's proprietary geophysical Typhoon technology under a dedicated services agreement. 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
KAIZEN CONTACT INFORMATION
B. Matthew Hornor
President and CEO
Executive Vice President, Corporate Development
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 release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in the company's periodic filings with Canadian securities regulators. When used in this document, the 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.
Forward-looking information and statements in this news release include, but are not limited to, statements regarding the geological potential of the Coppermine District; the identification, exploration, and development of high-quality mineral projects and the delivery of minerals to Japan's industrial sector.
All such forward-looking information and statements are based on certain assumptions and analyses made by members of Kaizen's and Tundra Copper's management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors that they believe are appropriate in the circumstances. These statements, however, are subject to a variety of risks, uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements and Kaizen undertakes no obligation to update such statements, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information or statements.
Information provided in this news release related to Tundra Copper has not been independently verified by management of Kaizen.
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