Kaizen Discovery Announces Corporate Reorganization

9 August 2021

August 9, 2021

VANCOUVER, CANADA — Eric Finlayson, Interim President and Chief Executive Officer of Kaizen Discovery Inc. (TSXV: KZD; otherwise "Kaizen" or "the Company") announces today that it is undertaking a series of transactions to recapitalize and reorganize the Company (the "Reorganization") to be implemented over the next 60 days:

  • A C$7,500,000 rights offering, extended to all shareholders of Kaizen, backed by a stand-by guarantee of Ivanhoe Electric (BVI) Inc., the Company's majority shareholder, with the proceeds used to fund the Company's upcoming exploration programs and business operations;
  • Conversion to common shares of all loans advanced to the Company by majority shareholder Ivanhoe Electric (BVI) Inc.;
  • Following the settlement of the rights offering and conversion of the loans, the Company intends to implement a 10 for 1 share consolidation; and
  • The addition of three independent directors, each of whom has extensive industry experience and a successful track record of advancing mineral exploration projects and companies.

"Upon completion, this Reorganization will result in the Company being well-capitalized, debt-free and efficiently structured to advance its mineral projects and to drive value for its shareholders" said Eric Finlayson, Interim President and CEO of Kaizen.

[Ed note: Kaizen owns the Coppermine Project in Nunavut, a non-core asset for which options are being assessed, including a possible sale to, or joint venture with, a third party.] 

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