Business
Japan Gold Closes C$5 Million Second Tranche of Over-Subscribed Private Placement
Vancouver, British Columbia--(Newsfile Corp. - June 1, 2020) - Japan Gold Corp. (TSXV: JG) (...
About this update from Japan Gold Corp
[{"type":"text","content":"Japan Gold Closes C$5 Million Second Tranche of Over-Subscribed Private PlacementVancouver, British Columbia--(Newsfile Corp. - June 1, 2020) - Japan Gold Corp. (TSXV: JG) (OTCQB: JGLDF) (the \"Company\" of \"Japan Gold\") is pleased to announce that it has closed a C$5 million second and final tranche of its previously announced non-brokered private placement (the \"Private Placement\"). The Private Placement was significantly over-subscribed and the net proceeds of the Private Placement will be used primarily for the Company's exploration activities and for general working capital. John Proust, the Company's Chairman and CEO commented, \"I would like to thank investors for their overwhelming support in this oversubscribed offering. This financing will give Japan Gold the ability to initiate new drill programs on its wholly owned Ikutahara Project in Hokkaido and Ohra-Takamine Project in southern Kyushu concurrently with the country wide evaluation of 28 projects already being carried out under the Barrick Alliance. The high demand for this private placement is a testament to the quality of assets and partnerships we have assembled and we look forward to keeping shareholders updated as we progress on this exceptional land package.\"Under the second tranche of the Private Placement, the Company issued 20,000,000 units of the Company (the \"Units\") at a price of C$0.25 per Unit for gross proceeds of C$5 million. Together with the first tranche closing announced on May 11, 2020, the Company has now raised a total of C$7,569,500 under this over-subscribed Private Placement. Southern Arc Minerals Inc. (\"Southern Arc\") participated and supported the Private Placement by subscribing for 3,520,000 Units in the second tranche. Southern Arc also settled $1 million of debt under a previously announced loan agreement concurrently with the closing of the first tranche of the Private Placement. The debt was settled by the issuance of 4,000,000 Units to Southern Arc in accordance with Policy 4.3 of the TSX Venture Exchange policies. The Units issued pursuant the Debt Settlement have the same terms as the Private Placement Units.Each Unit consists of one common share of the Company (each, a \"Common Share\") and one-half of one transferable common share purchase warrant (each whole warrant, a \"Warrant\"). Each Warrant will entitle the hold...