Japan Gold Corp (CVE:JG) (OTCQB:GLDF) is set to raise C$15 million gross from a private placing to advance its Ikutahara and Ohra-Takamine projects.
These two assets are not included in the group's country-wide alliance with major Barrick Gold, which covers 29 of the group's projects across Hokkaido, Honshu and Kyushu.
Ohra-Takamine spans nearly 4,000 hectares and is on Kyushu, while the Ikutahara asset is on Hokkaido.
READ: Japan Gold embarks on drilling at the Ryuo mine prospect in Hokkaido
Japan Gold will issue over 42.8 million shares at C$0.35 each to raise the funds, which will be used for "drill programs, drill targeting and advanced exploration" and working capital, the explorer said in a brief statement.
The company will pay a finder's fee in cash equal to 6% of the gross proceeds from the share sale to third parties sourced by the finders as well as warrants to buy shares equal to 6% of shares sold to third parties sourced by the finder.
Each finder's warrant will be exercisable into one Japan Gold share for C$0.35 per share for 12 months from closing.
Shares in the company closed in Canada on June 24 at C$0.37 each.
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