Japan Gold Corp. [JG-TSXV, JGLDF-OTCQB] said Friday it has arranged a non-brokered private placement of 42.8 million shares at 35 cents each, a move that is expected to raise gross proceeds of $15 million.
Japan Gold is a Canadian mineral exploration company with a focus on Japan’s three largest islands: Hokkaido, Honshu, and Kyushu. The company has a country-wide alliance with Barrick Gold Corp. [ABX-TSX, GOLD-NYSE] to jointly explore, develop and mine certain gold mineral properties and mining projects.
The Barrick Alliance covers the entire country of Japan, including 28 of 30 projects currently held by Japan Gold.
The gold projects cover areas with known gold occurrences and a history of mining. These projects are prospective for high-grade epithermal gold mineralization.
Proceeds of the private placement will be used for drill programs, drill targeting and advanced exploration at the company’s 100%-owned Ikutahara and Ohra-Takamine projects. Ikutahara covers 20,513 hectares and is located on Hokkaido Island. Ohra-Takamine covers 3,705 hectares and is located on Kyushi Island.
The Barrick Alliance does not include the Ikutahara and Ohra-Takamine projects, which Japan Gold will continue to advance independently.
Japan Gold was the first foreign company to be granted mineral exploration licenses in Japan since World War 11.
In 1943, at the height of the war, Japan placed a moratorium on gold mining, directing all of its companies to the war effort. It meant that mining engineers could be redirected to base metal mines in support of the war effort. Following the war, very few of the mines resumed production, resulting in a hiatus in exploration.
But that was before the Global economic crisis in 2008 and the March 2011 Fukushima nuclear power plant disaster created the need for economic stimulus and a change in the law in 2012, when foreign companies were permitted to operate independently in Japan.
In a March 2021, press release, Japan Gold announced results from three scout holes completed at the Ohra-Takamine project. The company said drilling encountered narrow high-grade gold vein intercepts below the Urushi Mine, and multiple gold-anomalous sheeted quartz vein zones below the Ohra Mine workings.
The scout holes were drilled (total 1,624 metres) along the central 3.5-kilometre corridor of alteration and epithermal-gold mineralization defined by the Ohra, Takamine and Urushi historic mines.
One drill hole, which targeted the down dip extension of the Urushi Mine workings, intersected seven narrow, gold-anomalous veins, including highlight intercepts of 0.35 metres @ 21.7 g/t gold and 13 g/t silver from 233.95 metres.
On Friday, Japan Gold shares eased 4.05% or $0.015 to 35.5 cents on volume of 909,000. The shares are trading in a 52-week range of 47 cents and 26 cents.