Kaizen Discovery Announces Additional US $ 1.2 Million Short Term Loan From HPX TechCo

0
29

[ad_1]

Vancouver, British Columbia – (Newsfile Corp. – June 30, 2021) – Eric Finlayson, interim President and CEO of Kaizen Discovery Inc. (TSXV: KZD) (aka “Kaizen” or “Company”), I am pleased to announce that the Company has raised an additional short-term loan of US $ 1.2 million (the “Loan”) from its majority shareholder HPX TechCo Inc. (“HPX”), a wholly owned subsidiary of Ivanhoe Electric Inc.

“We appreciate the continued support of our majority shareholder HPX as we prepare for the next phase of exploration at our 100% Pinaya Copper-Gold project in Peru.” commented Mr Finlayson.

HPX will advance the Loan at its sole discretion from time to time upon Kaizen’s request prior to the maturity date. The loan is in addition to the existing US $ 4.04 million short-term loan from HPX (see Kaizen press release from April 13, 2021). The loan will be evidenced on the existing second amended and revised unsecured bill. All amounts due are due on 30 September 2021 and bears an interest rate of 10% per annum with compound interest only at maturity.

The company intends to use the proceeds from the loan for general working capital purposes and Kaizen’s 100% Pinaya Copper-Gold project in Peru.

The Loan is a “related party transaction” in Multilateral Instrument 61-101 – Protection of minority securities holders in special transactions (“MI 61-101”) as HPX is a related party of Kaizen, given its beneficial ownership in excess of 10%. In accordance with Section 5.7 (1) (f) MI 61-101, the Company is exempted from obtaining the approval of the minority shareholders of the Company in respect of the Loan, as it has been determined that the Loan is being provided on reasonable commercial terms that are equally beneficial. Of the Company than if the Loan was obtained from a person having a commercial relationship with the Company and because the Loan is not convertible or redeemable in equity or voting securities of the Company or a subsidiary of the Company or otherwise participates in. The Company will submit a report on significant changes in relation to the Loan. However, the report of significant changes will be filed less than 21 days prior to the closure of the Loan, which is consistent with market practice and which the Company believes is reasonable in the circumstances.

About kaizen

Kaizen is a Canadian exploration and development company with exploration projects in Peru and Canada. More information about Kaizen is available on the website www.kaizendiscovery.com

ON BEHALF OF THE COMPANY
Eric Finlayson, interim president and chief executive officer

Contact Information

Investor Relations + 1-604-689-8765
info@kaizendiscovery.com

Neither TSX Venture Exchange nor its Regulatory Service Provider (as the term is defined in the TSX Venture Exchange policy) is responsible for the adequacy or accuracy of this release.

Forward-looking statements

This press release includes “forward-looking statements” and “forward-looking information” within the meaning of Canadian securities laws. All statements included in this press release, other than statements of historical fact, are forward-looking statements, including but not limited to statements with respect to the Loan, including sampling, repayment schedule and intended purposes of the Loan; and statements regarding future exploration work at the Company’s mineral deposits. Forward-looking statements include forecasts, forecasts and projections and are often, but not always, defined using words such as expect, believe, plan, estimate, expect, potential, target. , “Budget” and “intent” and statements that an event or result “may”, “will”, “should”, “may” or “may” occur or be achieved, and other similar expressions and include their negative aspects …

Forward-looking statements are based on a number of assumptions and estimates that, although considered reasonable by management based on the business and markets in which the Company operates, are inherently subject to significant operational, economic and competitive uncertainties, risks and unforeseen circumstances. This includes assumptions about, but is not limited to: general business and economic conditions; availability of additional financing for geological exploration and mineral resources; supply and demand, stocks, and the level and volatility of metal prices; terms and receipt of state permits and approvals; timing and obtaining permits of the community and landowners; changes in rules; political factors; the accuracy of the Company’s interpretation of the drilling results; geology, maintenance and continuity of the Company’s mineral deposits; the availability of equipment, skilled labor and services necessary for the exploration and development of minerals; and currency fluctuations. There can be no assurance that forward-looking statements will prove to be accurate and actual, and future events could differ materially from those anticipated in such statements. Critical factors that could cause actual results to differ materially from the Company’s expectations include actual exploration results, interpretation of metallurgical mineralization characteristics, changes in project parameters as plans become more refined, future metal prices, availability of capital and financing on acceptable terms. … , general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to obtain necessary approvals, unknown impacts associated with potential operational disruptions caused by an outbreak of COVID-19 or other infectious disease, and other detailed studies or other the risks here and also from time to time in filings by the Company with the securities regulators, including those described under the heading “Risks and Uncertainties” in the Company’s recent audit and takeover reports. The Company does not undertake to update or revise any forward-looking statements, except in accordance with applicable law.

To view the original version of this press release, visit https://www.newsfilecorp.com/release/89171

[ad_2]

Source link