Japan Gold Corp (CVE:JG) (OTCQB:JGLDF) revealed Monday that it has now raised over C$7.5 million as it closed a second and final tranche of an oversubscribed placing for C$5 million, which will be used for exploration in the east Asian country.
Thanking its investor base, John Proust, the firm's chairman and CEO, told investors in a statement: "This financing will give Japan Gold the ability to initiate new drill programs on its wholly owned Ikutahara Project in Hokkaido and Ohra-Takamine Project in southern Kyushu concurrently with the country wide evaluation of 28 projects already being carried out under the Barrick Alliance."
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"The high demand for this private placement is a testament to the quality of assets and partnerships we have assembled and we look forward to keeping shareholders updated as we progress on this exceptional land package."
Under the second tranche, the firm issued 20 million units at C$0.25 a throw for gross proceeds of C$5 million.
Together with the first tranche closing, which was announced on May 11, the firm said it has now raised a total of C$7,569,500, it said in a statement.
Each unit consists of one company share and one-half of a transferable share purchase warrant. Each warrant entitles the bearer to buy one share at C$0.40 each for 24 months from closing.
The group's biggest shareholder Southern Arc Minerals Inc took part in the placing and subscribed for 3.52 million units in the second tranche.
Southern Arc also settled C$1 million of debt under a previously announced loan agreement concurrently with the closing of the first tranche, said Japan Gold.
Earlier this month, the group announced the start of a huge exploration program in Japan as part of the Barrick Gold Corp (NYSE:GOLD) (TSE:ABX) alliance, announced in February this year, to jointly explore, develop and mine properties in the country.
The junior company will be the operator of the work, which includes stream sampling and gravity surveys, which will progress from the south to the north of Japan. It is expected to be completed within a year.
Barrick will sole fund a two-year initial evaluation of each project and potentially a three-year second phase if they meet the mining titan's criteria.
There is a minimum total spend of US$3 million for each of the first two years of the alliance.
The program includes sampling of stream sediments for bulk leach extractable gold (BLEG) along with gravity surveys over the 1,521 square kilometers covered by the alliance on the islands of Kyushu, Honshu and Hokkaido.
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