Japan Gold (JG.V) said on Wednesday that Solidcore Resources has committed to funding CA$35 million on five areas of Japan Gold's portfolio.
The funding, when completed, will offer Solidcore the option to earn a 49% interest in up to five joint ventures, a statement said. Solidcore may increase its stake to 70% in a joint venture by funding a pre-feasibility study within three years of the joint venture's formation. This may again be hiked to 80% by completing a bankable feasibility study within a stipulated time frame.
Solidcore and Equinox Partners Investment Management have closed two equity financings in Japan Gold totalling CA$10.5 million. The alliance and concurrent equity financing will accelerate exploration on district-scale prospective epithermal gold projects across the three main islands of Japan.
Japan Gold has appointed two Solidcore nominees to its board of directors.
"We are delighted to announce the Alliance with Solidcore, a focused and motivated technical and financial partner with a long-term growth strategy and a leading position in the gold industry. The vision of Solidcore CEO Vitaly Nesis of reserve growth through expanded geographic diversification is perfectly timed with Japan Gold's extensive formative work over the past decade as the first mover in Japan," said Chief Executive John Proust.
Japan Gold shares were last seen up CA$0.06 to CA$0.14 on the TSX Venture Exchange.
Price: $0.14, Change: $+0.06, Percent Change: +75.00%