Japan Gold Announces Sale of Royalty to Osisko Gold Royalties
Japan Gold Corp. (JGLDF) has entered into an investment agreement with Osisko Gold Royalties to sell a 1.5% net smelter return royalty on certain properties in Japan for US$5 million in cash. The agreement includes an option for Osisko to purchase an additional 0.5% royalty for US$3 million on the first anniversary.
The royalty is secured by a share pledge of JGKK shares and a guarantee from Japan Gold. The company has granted Osisko right of first refusal on future royalty and stream transactions for properties not under the Strategic Alliance Agreement with Barrick Gold
The proceeds will primarily fund exploration and development of the Royalty Properties. As a first mover in Japan, the company holds 100%-owned permits in areas of past-producing gold mines and around the high-grade Hishikari Mine.
Japan Gold Corp. (JGLDF) ha stipulato un accordo di investimento con Osisko Gold Royalties per vendere una royalty netta di ritorno da fusione del 1,5% su alcune proprietà in Giappone per 5 milioni di dollari USA in contante. L'accordo prevede un'opzione per Osisko di acquistare un'ulteriore royalty dello 0,5% per 3 milioni di dollari USA al primo anniversario.
La royalty è garantita da un pegno delle azioni di JGKK e da una garanzia di Japan Gold. La società ha concesso a Osisko il diritto di prelazione su future transazioni di royalty e stream per proprietà non soggette all'Accordo di Alleanza Strategica con Barrick Gold.
Il ricavato finanzierà principalmente l'esplorazione e lo sviluppo delle proprietà royalty. In qualità di primo operatore in Giappone, la società detiene permessi di proprietà al 100% in aree di miniere d'oro con produzione passata e attorno alla miniera ad alta grade di Hishikari.
Japan Gold Corp. (JGLDF) ha firmado un acuerdo de inversión con Osisko Gold Royalties para vender una regalía neta de retorno del 1,5% sobre ciertas propiedades en Japón por 5 millones de dólares estadounidenses en efectivo. El acuerdo incluye una opción para que Osisko compre una regalía adicional del 0,5% por 3 millones de dólares estadounidenses en el primer aniversario.
La regalía está asegurada por un compromiso de acciones de JGKK y una garantía de Japan Gold. La empresa ha otorgado a Osisko el derecho de tanteo sobre futuras transacciones de regalías y streams para propiedades no incluidas en el Acuerdo de Alianza Estratégica con Barrick Gold.
Los ingresos se destinarán principalmente a la exploración y el desarrollo de las propiedades de regalías. Como pionera en Japón, la empresa posee permisos totalmente propios en áreas de minas de oro que han producido en el pasado y alrededor de la mina de alta ley Hishikari.
Japan Gold Corp. (JGLDF)는 Osisko Gold Royalties와 투자 계약을 체결하여 일본의 특정 자산에 대해 1.5% 순 제련소 수익 로열티를 500만 달러로 판매하기로 했습니다. 이 계약에는 Osisko가 첫 번째 기념일에 0.5% 로열티를 300만 달러에 추가로 구입할 수 있는 옵션이 포함되어 있습니다.
이 로열티는 JGKK 주식에 대한 주식 담보 및 Japan Gold의 보증으로 보장됩니다. 회사는 Barrick Gold와의 전략적 제휴 계약에 포함되지 않은 자산에 대한 향후 로열티 및 스트림 거래에 대해 Osisko에게 우선 구매권을 부여했습니다.
수익금은 주로 로열티 자산의 탐사 및 개발 자금으로 사용될 것입니다. 일본에서의 선두주자로서, 이 회사는 과거에 생산된 금광 지역 및 고품질 Hishikari 광산 주변에 100% 소유의 허가를 보유하고 있습니다.
Japan Gold Corp. (JGLDF) a conclu un accord d'investissement avec Osisko Gold Royalties pour vendre une redevance nette de retour de 1,5% sur certaines propriétés au Japon pour 5 millions de dollars américains en espèces. L'accord comprend une option permettant à Osisko d'acheter une redevance supplémentaire de 0,5% pour 3 millions de dollars américains lors de la première anniversary.
La redevance est garantie par un nantissement des actions de JGKK et par une garantie de Japan Gold. La société a accordé à Osisko un droit de premier refus sur les futures transactions de redevance et de stream pour des propriétés non soumises à l'Accord d'Alliance Stratégique avec Barrick Gold.
Les revenus serviront principalement à financer l'exploration et le développement des propriétés de redevance. En tant que premier acteur au Japon, la société détient des permis entièrement détenus à 100% dans des zones de mines d'or ayant déjà produit et autour de la mine à haute teneur d'Hishikari.
Japan Gold Corp. (JGLDF) hat eine Investitionsvereinbarung mit Osisko Gold Royalties abgeschlossen, um eine 1,5% netto Schmelzertragsroyalty auf bestimmte Grundstücke in Japan für 5 Millionen US-Dollar in bar zu verkaufen. Die Vereinbarung beinhaltet eine Option für Osisko, eine zusätzliche 0,5% royalty zum Preis von 3 Millionen US-Dollar am ersten Jahrestag zu erwerben.
Die Royalty ist durch eine Aktienverpfändung der JGKK-Aktien und eine Garantie von Japan Gold abgesichert. Das Unternehmen hat Osisko ein Vorkaufsrecht auf zukünftige Royalty- und Stream-Transaktionen für Grundstücke gewährt, die nicht unter dem Strategischen Allianzvertrag mit Barrick Gold fallen.
Die Erlöse werden hauptsächlich die Exploration und Entwicklung der Royalty-Immobilien finanzieren. Als Vorreiter in Japan hält das Unternehmen 100% im Besitz befindliche Genehmigungen in Bereichen ehemaliger Goldminen und rund um die hochgradige Hishikari-Mine.
- Secured non-dilutive financing of US$5 million with potential additional US$3 million
- Strategic partnership with Osisko Gold Royalties, an established royalty company with over 180 royalties
- 100% ownership of permits in historically productive gold mining areas
- Reduction in future revenue potential due to 1.5% royalty obligation
- Additional potential revenue reduction if 0.5% royalty option is exercised
Vancouver, British Columbia--(Newsfile Corp. - February 4, 2025) - Japan Gold Corp. (TSXV: JG) (OTCQB: JGLDF) ("Japan Gold" or the "Company") is pleased to announce that it has entered into an investment agreement dated February 4, 2025 (the "Investment Agreement") with Japan Gold KK, a wholly-owned subsidiary of the Company ("JGKK" and, together with Japan Gold, the "JGC Parties") and Osisko Gold Royalties Ltd ("Osisko"), pursuant to which, among other things, the JGC Parties have created and sold to Osisko (the "Transaction") a
Mr. John Proust, Chairman and CEO of Japan Gold, said, "We are pleased to work with Osisko as a strategic partner to advance our exploration of epithermal gold properties in Japan. Osisko is an intermediate precious metal royalty company with a strong portfolio of over 180 royalties and streams and provides well-respected technical expertise. The Transaction allows us to accelerate our exploration activities across Japan to unlock the significant mineral potential of our projects through a non-dilutive financing." Mr. Proust added, "As a first mover in Japan, the Company has assembled a significant land position of
On the first anniversary of the Investment Agreement, or such other date mutually agreed to between the JGC Parties and Osisko, Osisko will have the option to purchase an additional
The Royalty is a secured obligation of the JGC Parties evidenced initially by, among other things, a share pledge by the Company of JGKK's shares as well as by a guarantee from Japan Gold, with a full security package to be put in place by the parties following further consultation with the applicable governmental authorities and to the extent permitted under applicable laws and the strategic alliance agreement dated February 23, 2020 (the "Strategic Alliance Agreement") among the JGC Parties and Barrick Gold Corporation. Japan Gold has granted Osisko certain rights as part of the transaction, including a right of first refusal on future royalty and stream transactions on present and future Japan Gold properties that are not subject to the Strategic Alliance Agreement.
The Company expects the net proceeds of the Transaction will be primarily used by the JGC Parties for the exploration, development and general advancement of the Royalty Properties, with the balance to be used for general capital purposes.
About Japan Gold Corp.
Japan Gold Corp. is a Canadian mineral company focused on the exploration and discovery of high-grade epithermal gold deposits across the main islands of Japan. The Company holds a significant portfolio of tenements covering areas with known gold occurrences, history of mining and prospective for high-grade epithermal gold mineralization in one of the most stable and under explored countries in the world. The Japan Gold leadership and operational team of geologists, drillers and technical advisors have extensive experience exploring and operating in Japan and have a track record of discoveries world-wide. Japan Gold has an alliance with Barrick Gold Corporation to jointly explore, develop and mine certain gold mineral properties and mining projects with the potential to host Tier 1 or Tier 2 gold ore bodies in Japan. Significant shareholders include Equinox Partners Investment Management LLC and Newmont Corporation.
On behalf of the Board of Japan Gold Corp.
John Proust
Chairman & CEO
For further information, please contact:
Alexia Helgason
Vice President, Corporate Communications
Phone: 604-417-1265
Email: ahelgason@japangold.com
Cautionary Note
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements relating to expected or anticipated future events, including, but not limited to, statements regarding: the expected use of the net proceeds of the Transaction and a full security package being put in place by the parties following further consultation. Forward-looking statements reflect material expectations and assumptions, including, without limitation, expectations and assumptions relating to: Japan Gold's ability to receive sufficient financing on acceptable terms or at all for its exploration and mining activities; the future price of metals; and the stability of the financial and capital markets. These statements are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, including, but not limited to, those discussed and identified in public filings made by Japan Gold with the applicable Canadian securities regulatory authorities and the following: Japan Gold's ability to satisfy the ongoing obligations of the JGC Parties set out in definitive agreements related to the Transaction; the timing and granting of prospecting rights; Japan Golds's ability to convert prospecting rights into digging rights within the timeframe prescribed by the Mining Act (Japan); general economic, market and business conditions; competition for qualified staff; the regulatory process and actions; technical issues; new legislation; potential delays or changes in plans; working in a new political jurisdiction; results of exploration; Japan Gold's ability to execute and implement future plans, arrange or conclude a joint venture or partnership; and the occurrence of unexpected events. Actual results achieved may differ from the information provided herein and, consequently, readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this news release. Japan Gold disclaims any intention or obligation to update or revise forward-looking information or to explain any material difference between such and subsequent actual events, except as required by applicable laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/239563
FAQ
How much did Osisko pay for Japan Gold's (JGLDF) royalty agreement?
What additional royalty option does Osisko have with Japan Gold (JGLDF)?
How will Japan Gold (JGLDF) use the proceeds from the royalty sale?
What security measures are in place for the JGLDF royalty agreement with Osisko?
