Business
Southern Arc Agrees to Loan $1 Million to Japan Gold
Vancouver, British Columbia--(Newsfile Corp. - March 9, 2020) - Southern Arc Minerals Inc. (...
About this update from Japan Gold Corp
[{"type":"text","content":"Southern Arc Agrees to Loan $1 Million to Japan GoldVancouver, British Columbia--(Newsfile Corp. - March 9, 2020) - Southern Arc Minerals Inc. (TSXV: SA) (\"Southern Arc\") and Japan Gold Corp. (TSXV: JG) (OTCQB: JGLDF) (\"Japan Gold\") are pleased to announce that Southern Arc has agreed to the terms of an unsecured loan to Japan Gold in the principal amount of C$1 million (the \"Loan\"). The Loan is for a 6 month term ending on September 9, 2020. The proceeds from the Loan will be used by Japan Gold for working capital and general corporate purposes. In consideration for the Loan, Southern Arc will receive from Japan Gold a cash fee of 5% of the amount of the Loan and 500,000 non-transferable share purchase warrants. Each warrant will entitle Southern Arc to purchase one common share of Japan Gold at $0.40 per share until March 9, 2021. Any shares issued on exercise of the Warrants are subject to a four month hold period expiring on July 10, 2020. Southern Arc currently owns 25.87% of Japan Gold's issued and outstanding common shares. The Loan is considered a \"related party transaction\" for both companies pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). Southern Arc and Japan Gold are each relying on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement, as the fair market value of the transaction does not exceed 25% of either company's market capitalization. Southern Arc and Japan Gold have four directors in common. The terms and conditions of the Loan have been reviewed and approved by the independent directors of each of Southern Arc and Japan Gold.On behalf of the Board of Southern Arc Minerals Inc. and Japan Gold Corp.\"John Proust\"Chairman & CEOAbout Southern ArcSouthern Arc is a Canadian company focused on enhancing shareholder value through strategic investments in mineral resource companies with a focus on gold and copper-gold. Southern Arc's management team identifies highly prospective assets in politically safe jurisdictions and seeks to unlock their value by providing strategic investments, proven technical skills, global knowledge, and increased access to industry relationships. More information is av...