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Japan Gold closes first tranche of private placing and announces second of up to C$2.5M

The firm has exploration properties across three of Japan’s largest islands

Japan Gold -
Japan Gold said it has issued over 14.3 million units at C$0.25 each, worth C$3.5 million in the first tranche

Japan Gold Corp (CVE:JG) (OTCQB:JGLDF) said it has been pleased with the response to its equity offering, which it has upsized by up to C$2.5 million in a second tranche, having now closed the first tranche.

The group said it issued had over 14.3 million units at C$0.25 each, worth C$3.5 million in the first tranche. This included a lead order of C$250,000 and the conversion of a C$1 million loan into units of a placing by Southern Arc Minerals Inc, which is a large shareholder of Japan Gold.

READ: The group said it had issued units worth C$3.5 million, or over 14.3 million at C$0.25 each in a first tranche.

"Based upon the strong demand for this equity offering, the company has increased the size of the financing by up to C$2.5 million with the second closing anticipated to occur within the next 30 days," said Japan Gold.

Each unit consists of one company share and one-half of a transferable share purchase warrant. Each whole warrant will entitle the holder to buy one company share at C$0.40 each for 24 months from closing.

The proceeds will be used mainly for exploration activities and for general working capital, it added.

The Vancouver-based company has exploration properties across three of Japan’s largest islands and a country-wide alliance with mining titan Barrick Gold.

"I am pleased that investors continue to demonstrate confidence in the company and its exploration activities in Japan, particularly in light of the global health crisis and the economic headwinds resulting from the pandemic," John Proust, Japan Gold's chairman and CEO said in a statement.

"Japan Gold has been able to distinguish itself from other junior gold explorers by exclusively focusing on Japan with its unique geological attributes, rich history of high-grade gold mining and vast underexplored areas.

"Our portfolio of 30 projects was the basis of the Barrick Gold Country-Wide Alliance and our first mover advantage has secured Newmont Corporation as a significant shareholder, validating our thesis that there are major gold deposits yet to be discovered in Japan," he added.

Also in the statement, Japan Gold said it had entered a financial advisory agreement with CIBC Capital Markets. It will pay the latter an initial fee of C$60,000 and issue 240,000 share purchase warrants exercisable at $0.25 each for 12 months.

Contact the author at [email protected]

Quick facts: Japan Gold

Price: 0.325 CAD

Market: TSX-V
Market Cap: $57.97 m

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