Metals Update 09/07/2021

Japan Gold closes $17-million financing

Japan Gold Corp. has closed an upsized $17-million non-brokered private placement of 48,571,429 shares of the company at a price of 35 cents per share. The private placement was significantly oversubscribed. The net proceeds of the private placement will be used for drill programs, drill targeting and advanced exploration at the company’s two wholly owned projects, Ikutahara and Ohra-Takamine, and for general working capital purposes. The company would like to recognize CIBC, Hannam & Partners, and Red Cloud Securities for their support in completing the financing.

John Proust, the company’s chairman and chief executive officer, commented: “With the closing of this financing, Japan Gold is well capitalized to initiate new drill programs on its wholly owned Ikutahara project in Hokkaido and Ohra-Takamine project in southern Kyushu. I would like to thank investors for their overwhelming support. The high demand for this private placement is a testament to the quality of the assets and partnerships we have assembled, and the concurrent advancement of the countrywide evaluation of 29 projects under the Barrick alliance. We look forward to what we believe will be an exciting year ahead for our company.”

The company paid a total of $1,010,688 in cash and issued a total of 2,887,679 compensation warrants in connection with the private placement. The compensation warrants are exercisable at 35 cents per common share for a period of 12 months from the date of closing. The shares and compensation warrants will be subject to a hold period of four months in accordance with applicable securities laws, which expires on Nov. 9, 2021.

In connection with the closing of the private placement, the company issued shares to one insider of the company. The company has determined that exemptions from the various requirements of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions are available for the issuance of the shares to the related party. The company is relying on the exemptions from the formal valuation and minority approval requirements contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, on the basis that the fair market value of the insider participation is not more than 25 per cent of the company’s market capitalization. The company will file a material change report in relation to the foregoing related party transaction on SEDAR under the company’s profile. The company did not file the material change report more than 21 days prior to the closing of the transaction due to the timing of the announcement and closing occurring in less than 21 days.

ATAC grants options to buy 2.95 million shares

ATAC Resources Ltd. has granted options to buy incentive stock to its directors, officers, employees and consultants, entitling them to purchase up to a total of 2,950,000 shares at a price of 18 cents per share for a period of five years. The options will vest on a quarterly basis commencing three months from the date of grant.