Eric Finlayson, Interim President and Chief Executive Officer of Kaizen Discovery Inc. (TSXV: KZD) is pleased to announce that the Company has arranged an additional US$642,000 short-term loan from its majority shareholder HPX TechCo Inc.; a wholly-owned subsidiary of High Power Exploration Inc.
“We appreciate the continued support of our majority shareholder HPX as we continue to make preparations for a new phase of exploration at our 100%-owned Pinaya Copper-Gold Project in Peru,” commented Mr. Finlayson.
HPX will advance funds under the Loan at its discretion from time to time upon request by Kaizen prior to the maturity date. The Loan is in addition to the existing short-term loan of US$3.40 million from HPX. Kaizen has issued to HPX a second amended and restated unsecured promissory note that replaces the amended unsecured promissory note covering the existing short-term loan that was due on December 31, 2020 (refer to Kaizen’s news release dated August 6, 2020). The second amended promissory note evidences the total of up to US$4.04 million plus interest that will be owed to HPX and reflects a maturity date for all amounts owing as of September 30, 2021. The Loan has an interest rate of 10% per annum, compounding only at maturity.
The Company intends to use the proceeds from the Loan for general working capital purposes.
Please see the Kaizen news release for more information.