IE will advance funds under the Short-Term Loan at its discretion from time to time upon request by Kaizen prior to the maturity date. The Short-Term Loan will be evidenced on a grid promissory note and will bear interest at 12% per annum, compounding only at maturity. The interest rate will increase to 14% per annum if Kaizen does not repay the amount owing upon the maturity date, which is the earlier of
The Short-Term Loan constitutes a 'related party transaction' under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ('MI 61-101') as IE is a related party of Kaizen given its greater than 10% beneficial shareholding. Pursuant to Section 5.7(1)(f) of MI 61-101, the Company is exempt from obtaining minority approval of the Company's shareholders in respect of the Short-Term Loan because it was determined by the independent directors that the Short-Term Loan is on reasonable commercial terms that are not less advantageous to the Company than if the ShortTerm Loan was obtained from a person dealing at arm's length with the Company and because the Short-Term Loan is not convertible into, or repayable in, equity or voting securities of the Company or a subsidiary of the Company or otherwise participating in nature.
About Kaizen
Kaizen is a Canadian mineral exploration and development company with exploration projects in
Contact:
Tel: +1-604-689-8765
Email: info@kaizendiscovery.com
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