Japan Gold Closes C$7 Million Financing, Acquires Southern Arc Minerals Japan

Published: September 22, 2016 |

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Japan Gold Corp. (formerly Sky Ridge Resources Ltd.) has acquired Southern Arc Minerals Japan KK (SAMJ) and launched the first foreign mineral exploration company to focus solely on Japan. SAMJ has filed 80 mineral prospecting rights license applications in Japan and has begun exploring for high-grade gold and porphyry copper-gold mineralization.

Upon completion of the acquisition and the C$7 million financing, Sky Ridge consolidated its share capital on one-for-two basis and changed its name to Japan Gold Corp.

“Japan Gold Corp. has ‘first mover’ advantage as the first foreign (international) mineral exploration company to focus solely on gold opportunities in Japan,” said John Proust, chairman and CEO of Japan Gold.

“We have been working in Japan since early 2013, following a change to Japanese mining laws in 2012 that allowed Japanese subsidiaries to hold mineral exploration rights and mining permits. We have been reviewing historical exploration and production data and confirming our research with field reconnaissance in order to pinpoint the most promising exploration targets,” added Proust.

“Japan Gold was the first foreign exploration company to file applications for prospecting rights licenses. We have assembled a portfolio of very promising projects, and have the capital required to undertake a substantial exploration program and rapidly advance the properties. We have also recruited a leadership team with decades of resource industry experience and the business and technical expertise required to build a leading mineral exploration company,” concluded Proust.

FINANCED FOR EXPLORATION

Japan Gold issued shares for the acquisition of SAMJ. In connection with the acquisition of SAMJ, Japan Gold completed a financing involving the issuance of 17,500,000 post-Consolidation common shares at a price of C$0.40 per share, for gross proceeds of C$7,000,000. Proceeds of the financing will be used primarily to advance exploration of the Japan licenses and for general working capital.

JAPAN LICENSES

Management considers Japan to be largely underexplored, despite a history of significant gold production and known mineral occurrences.

Based on a desktop review of historical gold production and Japan’s extensive geoscientific database, SAMJ pinpointed areas that are very compelling from a geological perspective. The company has lodged 80 prospecting rights license applications throughout Hokkaido and northern Honshu, for a combined area of 27,153 hectares over eight project areas. All 80 of the prospecting rights license applications have been accepted for further government review, reserving the land for SAMJ and allowing for low impact forms of exploration such as mapping, surface sampling and geophysics.

Four of the project areas, Ikutawara, Numanoue, Aibetsu and Buho, target high-grade epithermal gold deposits. The other four project areas, Ponkutosan, Minamikyabe, Kobui and Eboshi, target prospective epithermal gold deposits and areas of gold-bearing advanced argillic alteration lithocaps, which could indicate the presence of a porphyry mineral environment.

Ikutawara (38 contiguous applications) is SAMJ’s most advanced project, with mapping/sampling and orientation ground magnetics completed in 2015. The Ikutawara applications host numerous historical gold workings including the Kitano-o mine, which has recorded production of 96,450 ounces of gold between 1924 and 1943 from sinterous and sub-sinter quartz veins. SAMJ has investigated in detail two of the many historical mine locations covered by its applications and expects to apply for drilling permits in early 2017. Additional regional exploration is underway, including detailed stream geochemical sampling and geochemical mapping. SAMJ is also planning an aeromagnetic survey at 100-meter line spacing to gain further information on geology, host structures and alteration.

About Japan Gold
Japan Gold Corp. is a Canadian mineral exploration company focused solely on gold and copper-gold exploration in Japan. The company has applied for 80 prospecting rights licenses in northern Japan for a combined area of 27,153 hectares over eight separate projects. The applications cover areas with known gold occurrences and a history of mining, and are prospective for both high-grade epithermal gold mineralization and gold-bearing lithocaps, which could indicate the presence of porphyry mineralization. Japan Gold’s leadership team has decades of resource industry and business experience, and the company has recruited geologists and technical advisors with experience exploring and operating in Japan. Low-impact surface exploration is underway, with the expectation of applying for drilling permits in early 2017.

To stop by Japan Gold’s website, CLICK HERE

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