Japan Gold Corp has completed a financing with Southern Arc Minerals for gross proceeds of $5 million. The majority of the funds will be used for exploration at the company’s prospects in Japan.

Each unit consists of one common share and one transferable common share purchase warrant of Japan Gold. Each warrant is exercisable into one additional common share of Japan Gold at a price of $0.40 per share for a period of 5 years.

The units issued under the private placement will be subject to a four month hold period expiring on December 9, 2017.

The principal use of proceeds from the private placement is intended to fund $3.65 million in exploration expenditures with the remaindering allocated for general working capital.

Following the private placement, Southern Arc owns approximately 53.08% of Japan Gold’s issued and outstanding common shares. The private placement with Southern Arc is a related party transaction within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions.

Japan Gold received shareholder approval of the private placement on July 14, 2017 and is relying on sections 5.5(b) and 5.5(c) of MI 61-101 for the exemption from the valuation requirement in accordance with the policies of the TSX Venture Exchange and MI 61-101.

Japan Gold did not file a material change report more than 21 days in advance of the closing of the private placement based on the fact that the closing date of the private placement was not determined until regulatory approval had been obtained.

Japan Gold is a Canadian mineral exploration company focused solely on gold and copper-gold exploration in Japan. The company has applied for 180 prospecting rights licenses in Japan for a combined area of 59,606 hectares over 12 separate projects.

Thirty-two of the applications have been granted as Prospecting Rights. The applications cover areas with known gold occurrences and a history of mining, and are prospective for both high-grade epithermal gold mineralisation and gold-bearing lithocaps, which could indicate the presence of porphyry mineralisation.

Japan Gold’s leadership team has decades of resource industry and business experience, and the company has recruited geologists and technical advisors with experience exploring and operating in Japan.

www.japangold.com

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