- Japan Gold (TSXV:JG) has closed a C$5 million fundraising round
- The company offered up 20 million units at a per share price of 25 cents
- The units are made up of a common share, along with a warrant for a further share at a purchase price of 40 cents
- The company will use the cash to fund exploration at its Ikutahara and Ohra-Takamine projects
- Japan Gold (TSXV:JG) is up 3.8 per cent and is trading at 27 cents per share
Japan Gold (TSXV:JG) has closed a C$5 million fundraising round, alongside a final tranche of share offerings.
The company stated the private placement was significantly over-subscribed.
Japn Gold issued 20 million units at 25 cents each, netting the company $5 million in gross proceeds.
Southern Arc Minerals picked up 3.25 million of the shares and settled a $1 million debt Japan Gold owed the company through an additional four million units.
The units on offer involved one common share and a warrant for a further share purchase, available at a price of 40 cents per share.
The proceeds from the raise will be funnelled into the company’s exploration work at the Ikutahara and Ohra-Takamine projects
John Proust, CEO and Chairman of Japan Gold, said thanked investors for supporting the private placement.
“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.
“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 updates as we progress on this exceptional land package,” he said.
Earlier in the year, Japan Gold agreed to an exploration deal with mining giant Barrick, forming the Barrick Gold Alliance.
The alliance is a Japan-wide gold exploration initiative involving the majority of Japan Gold’s properties, alongside a host of properties Barrick has contributed to the project.
The initiative aims to establish gold production in Japan and streamline exploration costs in the region.
Japan Gold (JG) is up 3.8 per cent and is trading at 27 cents per share at 2:37 pm EDT.