Japan Gold Corp (CVE:JG) (OTCQB:GLDF) announced that it has closed an upsized C$17 million non-brokered private placement as it prepares to advance its Ikutahara and Ohra-Takamine projects.
The Vancouver-headquartered group company issued 48,571,429 shares at a price of C$0.35 per share in the oversubscribed private placement after earlier targeting C$15 million. The net proceeds will be used for drill programs, drill targeting and advanced exploration at the two wholly-owned projects, and for general working capital purposes.
READ: Japan Gold set to raise C$15M to advance its wholly-owned Ikutahara and Ohra-Takamine projects
"With the closing of this financing, Japan Gold is well-capitalized to initiate new drill programs on its wholly owned Ikutahara Project in Hokkaido and Ohra-Takamine Project in southern Kyushu,” the company's chairman and CEO John Proust said.
“The high demand for this private placement is a testament to the quality of the assets and partnerships we have assembled, and the concurrent advancement of the country-wide evaluation of 29 projects under the Barrick Alliance.”
The company paid a total of $1.01 million in cash and issued a total of 2,887,679 compensation warrants in connection with the private placement. The compensation warrants are exercisable at C$0.35 per common share for a period of 12 months from the date of closing.
In early 2020, Japan Gold struck an extensive tie-up with mining behemoth Barrick Gold Corp (NYSE:GOLD) (TSE:ABX) to jointly explore, develop and mine properties in Japan, now covering 29 of Japan Gold's 31 projects in the Asian nation. The Ikutahara and Ohra-Takamine projects are not part of the Barrick alliance.
Contact the author at stephen.gunnion@proactiveinvestors.com