- Japan Gold Corp (TSXV:JG) has formed an exploration alliance with mining giant, Barrick Gold Corp (TSX:ABX)
- Barrick will help fund exploration activities across 28 of Japan Gold’s 30 properties
- In exchange, Barrick Gold can assume up to a 75 per cent stake in any property through exploration and feasibility costs
- Japan Gold also announced it has been granted the rights to 6 more properties through Japan’s Ministry of Economy, Trade and Industry
- Japan Gold Corp (JG) was up 18.75 per cent, with shares currently trading for C$0.38
- Barrick Gold Corp (ABX) was up 4.27 per cent with, shares currently trading for 29.60 per cent.
Japan Gold Corp (TSXV:JG) has formed an alliance with Barrick Gold Corp (TSX:ABX), the second largest gold mining company in the world.
Barrick will now help explore and develop 28 of Japan Gold’s 30 properties.
As part of the deal, Barrick will solely fund a. two-year evaluation phase at each project. If Barrick chooses to also solely fund a pre-feasibility study at any of the projects, they will automatically assume a 51 per cent interest at that project.
Regardless of any further funding, Japan Gold will maintain at least a 25 per cent interest in each property.
Japan Gold will act as manager at each project, but Barrick may assume this position at any time.
Japan Gold Corp is currently focused entirely on exploration activities on three of Japans largest islands – Hokkaido, Honshu and Kyushu.
Barrick’s CEO, Mark Bristow, believes the alliance with Japan Gold provides his company will a number of strong assets.
“We are pleased to partner with Japan Gold, who have assembled an impressive portfolio of exploration tenements (…) We look forward to advancing our partnership by combining Barrick’s technical and financial resources with Japan Gold’s first mover advantage,” he said.
The Ikutahara Project in Hokkaido and the Ohra-Takamine Project in Kyushu were not included in the arrangement.
These two projects are currently involved in other alliances and so Japan Gold will continue to develop these projects separately.
Japan Gold also announced it has acquired six more new projects in Kyushu. The projects were granted by Japan’s Ministry of Economy, Trade and Industry and are included in its exploration alliance with Barrick.
Japan Gold Corp (JG) was up 18.75 per cent, with shares currently trading for C$0.38
Barrick Gold Corp (ABX) was up 4.27 per cent with, shares currently trading for 29.60 per cent.