Japan Gold Corp - Chairman & CEO, John Proust
Chairman & CEO, John Proust
Source: 121 Mining
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  • Japan Gold (TSXV:JG) has closed the first tranche of its 2020 fundraising program
  • The company has offered a sum total of 14,278,000 units at C$0.25 each
  • Units include a share at $0.25, along with a warrant for a further share at $0.40 per share
  • One of the company’s debtors, Southern Arc Minerals, has converted $1 million of debt into shares of Japan Gold
  • Japan Gold (JG) is up 3.7 per cent and trading for $0.28 per share, with a $31 million market cap

Japan Gold (TSXV:JG) has concluded the first tranche of its share offer, offering over 14 million units for C$0.25 each.

The company also announced that it has expanded its financing by up to C$2.5 million. This move came on the back of higher than expected interest in the initial placement round.

The closing included a lead order of $250,000, and conversion of C$1 million debt into shares by Southern Arc Minerals. Southern Arc is one of the major shareholders in Japan Gold.

The second closing should occur within the next 30 days. Japan Gold will use the proceeds of the placement for exploration activities and general working capital.

Each unit of the share offering will issue the holders a share at $0.25 per share. These will be accompanied by a warrant for another share purchase at $0.40 per share.

Japan Gold’s CEO, John Proust, was pleased that investors continued to “demonstrate confidence in the company and its exploration activities in Japan”.

“Japan Gold has been able to distinguish itself from other junior gold explorers by exclusively focusing on Japan with its unique geological attributes, rich history of high-grade gold mining, and vast under-explored areas.

“Our portfolio of 30 projects was the basis of the Barrick Gold Country-Wide Alliance. Our first mover advantage has secured Newmont Corporation as a significant shareholder, validating our thesis that there are major gold deposits yet to be uncovered in Japan,” John commented.

Southern Arc commented on the convertible loan, saying the company recognises Japan Gold’s accomplishments to date, and its potential through the Barrick Alliance and the Newmont’s support.

“The decision to convert the $1,000,000 loan to equity was based on the Southern Ac view that shares in Japan Gold are extremely undervalued,” a spokesperson said.

Japan Gold (JG) is up 3.7 per cent and trading for $0.28 per share at 2:07pm EDT.

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