J-Pacific renews search in B.C.

Subject to regulatory approval, J-Pacific Gold (JPN-V) will privately raise $300,000 to renew exploration in British Columbia.

The placement is to entail 750,000 units, of which 550,000 will qualify for flow-through taxation benefits. A unit consists of a share and a warrant that, in the case of the flowless-type, can be exercised for two years after the deal’s close, at 60. Warrants arising from the flow-through units expire a year earlier but are exercisable at the same price.

A finder’s fee of $7,500 and 50,000 warrants are payable. These warrants also expire a year after the deal’s close and are fixed at 60 each.

All of the securities are subject to a fourth-month hold period.

Most of the proceeds are earmarked for the Elizabeth and nearby Blackdome South properties, both of which are considered prospective for structurally controlled gold deposits. Although each is still at an early stage of exploration, historic underground workings at the former yielded up to 19.5 grams per tonne each of gold and silver from 8 tonnes of vein material.

J-Pacific also owns a half interest in the historic Blackdome gold mine, which extends northward from Blackdome South. Japan-based Jipangu holds the remaining stake, though J-Pacific can acquire that interest for $600,000 in cash and 1.5 million shares.

Between 1986 and 1991, Blackdome produced 240,000 oz. from 338,000 tonnes for an average grade of 22.09 grams per tonne. An inferred resource of 124,120 tonnes grading 12.8 grams gold and 33.7 grams silver was left behind.

The 200-tonne-per-day gravity and flotation plant remains on care and maintenance.

On June 30, J-Pacific had $367,533 in working capital and about 33.5 million shares issued and outstanding. Jipangu held 5.8 million of those shares, making it the largest single shareholder.