Japan Gold (TSXV: JG; US-OTC: JGLDF) is raising gross proceeds of $10 million to fund its 2023 exploration campaign through a private placement of 50 million common shares priced at 20¢ each.
Specifically, the funds will be used for drilling across the company’s large portfolio of exploration projects in Japan. The company holds a portfolio of 32 gold projects across the islands of Hokkaido, Honshu and Kyushu, covering 2,920 sq. km.
The explorer currently has a country-wide alliance with Barrick Gold (TSX: ABX; NYSE: GOLD) to jointly explore, develop and mine certain properties. For the 2023 program, Barrick has selected six projects for further advancement and will solely fund their drill programs.
Last month, Japan Gold announced the start of drilling at its Mizobe property on Kyushu island, one of the six Barrick-supported projects. Mizobe is located just south of the high-grade Hishikari mine operated by Sumitomo Metal Mining, and Japan’s only producing gold mine. It has produced about 9 million oz. of the yellow metal since 1985 at head grades of about 20 grams gold per tonne.
The properties not included in the Barrick alliance would require funding from new joint venture partners and equity financing.
Shares of Japan Gold were down almost 15% by late afternoon Wednesday in Toronto, giving the company a market capitalization of $45.1 million.
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