The three mining rights, collectively called the Kowa Project, comprises 389 hectares and will be included in the Barrick Alliance. The project adjoins the Japan Gold’s Ohra-Takamine Project, and the Barrick Alliance Mizobe-Onoyama Project in Southern Kyushu.
In a statement. Japan Gold said the mining rights host numerous gold-bearing epithermal quartz veins with shallow historic underground mine workings developed on them.
With the signing of the joint venture, Japan Gold said it has complete coverage over strike extensions to the Ohra-Takamine mineralization corridor, along with the numerous under-explored veins contained within the properties.
Highlights of the joint venture include:
- Japan Gold has an exclusive right to explore the properties in return for the company's commitment to fund the exploration and development and pay mining right taxes.
- The company has the right to acquire 100% equity in the mining rights in return for funding through to pre-feasibility.
- Consideration for the transfer of the mining rights to the company will be a 10% net profits interest.
- A joint technical committee will oversee exploration and development activities within the properties and the company will act as manager.
"We're very pleased to sign this joint venture agreement with the Koatsu Kogyo Corporation,” said Japan Gold CEO John Proust. “The joint venture covers a strategic and under-explored gap in the company's extensive portfolio in the very prospective Southern Kyushu Epithermal Gold Province."
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