Business
Japan Gold Announces Sale of Royalty to Osisko Gold Royalties
Vancouver, British Columbia--(Newsfile Corp. - February 4, 2025) - Japan Gold Corp. (TSXV: JG) (...
About this update from Japan Gold Corp
[{"type":"text","content":"Japan Gold Announces Sale of Royalty to Osisko Gold RoyaltiesVancouver, British Columbia--(Newsfile Corp. - February 4, 2025) - Japan Gold Corp. (TSXV: JG) (OTCQB: JGLDF) (\"Japan Gold\" or the \"Company\") is pleased to announce that it has entered into an investment agreement dated February 4, 2025 (the \"Investment Agreement\") with Japan Gold KK, a wholly-owned subsidiary of the Company (\"JGKK\" and, together with Japan Gold, the \"JGC Parties\") and Osisko Gold Royalties Ltd (\"Osisko\"), pursuant to which, among other things, the JGC Parties have created and sold to Osisko (the \"Transaction\") a 1.5% net smelter return royalty (the \"Initial Royalty\") on certain of the JGC Parties' properties and assets in Japan that are not (or subsequently are not) subject to the Strategic Alliance Agreement (as defined below) (collectively, the \"Royalty Properties\"), as evidenced by a royalty agreement entered into by the JGC Parties and Osisko concurrently with the Investment Agreement, for cash consideration of US$5,000,000. Mr. John Proust, Chairman and CEO of Japan Gold, said, \"We are pleased to work with Osisko as a strategic partner to advance our exploration of epithermal gold properties in Japan. Osisko is an intermediate precious metal royalty company with a strong portfolio of over 180 royalties and streams and provides well-respected technical expertise. The Transaction allows us to accelerate our exploration activities across Japan to unlock the significant mineral potential of our projects through a non-dilutive financing.\" Mr. Proust added, \"As a first mover in Japan, the Company has assembled a significant land position of 100%-owned permits in areas of past producing gold mines and surrounding the Hishikari Mine, a major gold deposit and one of the world's highest-grade gold producers. These districts have the geological potential to support significant discoveries.\"On the first anniversary of the Investment Agreement, or such other date mutually agreed to between the JGC Parties and Osisko, Osisko will have the option to purchase an additional 0.5% net smelter return royalty (together with the Initial Royalty, as the case may be, the \"Royalty\") from JGKK on the Royalty Properties, for additional cash consideration of US$3,000,000 payable by Osisko to the Company on such date.The Royalty is a secured obligatio...