Japan Gold (TSX-V:JG) announced the successful closing of the first tranche of its non-brokered private placement of shares, bringing in gross proceeds of $5.7 million.
The offering saw investors subscribing for 28.5 million shares of the company at a price of $0.20 per share.
The Vancouver-based junior exploration company said it plans to utilize the proceeds from the offering for drilling, drill targeting, advancing its exploration projects, and general working capital purposes.
As part of the transaction, Japan Gold (TSX-V:JG) Corp. paid a total of $275,000 in cash and issued 1,925,000 finder's warrants to arm's length finders. These finder's warrants are exercisable at C$0.20 per share for a period of 12 months from the closing date.
An insider of the company also participated in the offering by subscribing for 15 million shares, generating gross proceeds of $3 million.
Japan Gold is focused solely on gold exploration across the three largest islands of Japan: Hokkaido, Honshu and Kyushu. The company has a country-wide alliance with Barrick Gold to jointly explore, develop and mine certain gold mineral properties and mining projects.
It holds a portfolio of 31 gold projects.
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