Japan Gold (TSXV: JG; OTCQB: JGLDF) is raising gross proceeds of $10 million to fund its 2023 exploration campaign through a private placement of 50 million common shares priced at $0.20 each.
Specifically, the funds will be used for drilling across the company's large portfolio of exploration projects in Japan. The company holds a portfolio of 34 gold projects across the islands of Hokkaido, Honshu and Kyushu, covering 2,920 sqkm of area.
The miner currently has a country-wide alliance with Barrick Gold to jointly explore, develop and mine certain properties. For the 2023 program, Barrick has selected six projects for further advancement and will solely fund their drill programs.
The properties not included in the Barrick alliance would require funding from new joint venture partners and equity financing.
Shares of Japan Gold were down 6.4% by noon EDT Wednesday, giving the company a market capitalization of $49.5 million.