The Matthew Hornor led Kaizen Discovery (KZD:TSXV), which is over 40%-owned by legendary resource developer Robert Friedland, has secured a $5.1 million strategic investment from ITOCHU Corp. of Japan. Matthew Hornor has deep connections in Japan and was instrumental in securing Ivanhoe Mines’ (IVN:TSX) $300 million investment by a Japanese consortium for their Platreef platinum project in South African platinum mines.
ITOCHU, which is a prominent trading and investment house in Japan, will subscribe for an 8.5 million share private placement at $0.60, only a 6% discount to yesterday’s close of $0.64. After closing, ITOCHU will own roughly 6.35% of Kaizen. The companies intend to work together to evaluate exploration and development target globally.
Kaizen is 85%-owned by HPX TechCo a private company (50% owned by Friedland) which owns a proprietary method of IP surveying called Typhoon IP which allows the IP survey to go five times deeper than a traditional survey.
“Both companies share an interest in reviewing opportunities where we might use proprietary, best-in-class geophysical survey technologies, which are provided through Kaizen’s majority shareholder, HPX TechCo, and are designed to explore for deep, high-grade deposits,” said Matthew Hornor, CEO of Kaizen Discovery.
Among the terms in the agreement, ITOCHU will be given the opportunity to participate in the development of Kaizen’s current portfolio of assets should a further investment be needed. They will also be responsible for attempting to secure non-recourse financing from Japanese financial institutions in the event that ITOCHU makes a direct or non-direct investment in the development of an asset or assets.
ITOCHU will also be able to name one director to the board and will be given the right to maintain their equity ownership.