Folks, what in the electric thunder is going on? Ivanhoe Electric is gearing up to acquire the remaining interest in Peru-focused Kaizen Discovery, and it’s making waves in the financial world. The share exchange ratio represents a premium of 11.38% to the closing price of Kaizen’s shares on December 1, 2023 – talk about a bolt from the blue. A meeting is set to be held on January 29, 2024, to seek shareholder approval for this high-voltage transaction.
Let me tell you, Kaizen is revving up the excitement, stating that this transaction will provide increased liquidity for its shareholders due to the liquidity of the Ivanhoe shares. What’s more, it avoids the highly dilutive equity financings that are expected to be required should the company pursue a “go-alone” strategy. It’s like they’re dodging bullets like Neo in “The Matrix” – slick and unfazed!
Now, let’s talk about the treasure trove of opportunity this takeover would provide for Kaizen shareholders. They’re looking at the potential future increase in value of Ivanhoe, including Kaizen’s existing projects. The standout gem here is the Pinaya copper-gold project in southeastern Peru – it’s like striking gold in El Dorado!
Kaizen has been hard at work uncovering promising zones within the Pinaya property – and the numbers are electrifying. The estimated measured resource totals 8.2 million tonnes grading 0.33% copper and 0.60 grams per tonne gold, while there’s an estimated indicated resource of 33.5 million tonnes grading 0.32% copper and 0.46 g/t gold. As if that’s not enough, there’s an inferred resource of 40.2 million tonnes grading 0.36% copper and 0.30 g/t gold. That’s a gold rush for sure!
But wait, there’s more! Kaizen also has its hands on the Coppermine project in Nunavut, which represents a district-scale, greenfield exploration prospect with the potential for two distinct deposit types: sediment-hosted stratiform copper-silver and structurally controlled volcanic-hosted copper-silver. It’s like they hit the jackpot and uncovered treasure troves of shiny new opportunities.