The Vancouver-based company has a host of gold exploration properties across three of Japan’s largest islands and a country-wide alliance with mining giant Barrick Gold Corporation on its 30 projects.
The private placement sees Japan Gold issuing up to 12 million units priced at C$0.25 per unit for gross proceeds of C$3 million.
Each unit consists of one share and one-half of one warrant exercisable at C$0.40 for a 24-month period following closing. The warrants will contain a forced exercise provision if the closing price of the shares on the TSX Venture Exchange is equal to or greater than C$0.80 for a period of 10 consecutive trading days, Japan Gold said in a statement.
The company agreed to pay a finder’s fee of 6% of the gross proceeds to third parties sourced by the finders as well as warrants to purchase the equivalent number of shares or of the number of units sold to third parties sourced by the finder. The finder's warrants will be exercisable at C$0.25 per share for a period of 12 months from the date of closing.
A portion of the proceeds will also be used for general working capital.
Shares of Japan Gold jumped 5.9% in Toronto on Monday morning to trade at C$0.27 and traded around US$0.20 over the counter.
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