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Japan Gold Issues $3.5 Million in Units Including $1 Million Debt Conversion and Announces Second Financing Tranche of up to C$2.5 Million
Vancouver, British Columbia--(Newsfile Corp. - May 11, 2020) - Japan Gold Corp.  (TSXV:J...
About this update from Japan Gold Corp
[{"type":"text","content":"Japan Gold Issues $3.5 Million in Units Including $1 Million Debt Conversion and Announces Second Financing Tranche of up to C$2.5 MillionVancouver, British Columbia--(Newsfile Corp. - May 11, 2020) - Japan Gold Corp. (TSXV:JG) (OTCQB:JGLDF) (the \"Company\") is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement (the \"Private Placement\") of 14,278,000 units of the Company (the \"Units\") at a price of C$0.25 per Unit. This first closing included a lead order of C$250,000 and the conversion of a C$1,000,000 loan (previously announced on March 9, 2020) into Units of the Private Placement by Southern Arc Minerals Inc., a large shareholder of Japan Gold.Based upon the strong demand for this equity offering, the Company has increased the size of the financing by up to C$2.5 million with the second closing anticipated to occur within the next 30 days. Proceeds of the Private Placement will be used primarily for the Company's exploration activities and for general working capital. The Company would like to thank CIBC Capital Markets and Red Cloud Securities for their assistance in closing this first tranche of the private placement.John Proust, the Company's Chairman and CEO commented \"I am pleased that investors continue to demonstrate confidence in the Company and its exploration activities in Japan, particularly in light of the global health crisis and the economic headwinds resulting from the pandemic. Japan Gold has been able to distinguish itself from other junior gold explorers by exclusively focusing on Japan with its unique geological attributes, rich history of high-grade gold mining and vast underexplored areas. Our portfolio of 30 Projects was the basis of the Barrick Gold Country-Wide Alliance and our first mover advantage has secured Newmont Corporation as a significant shareholder, validating our thesis that there are major gold deposits yet to be discovered in Japan.\"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 holder to purchase one Common Share at a price of C$0.40 per Common Share for a period of 24 months from the date of closing. The Warrants contain a forced exercise provision i...