Japan Gold has entered into an investment agreement with Osisko Gold to sell a 1.5% net smelter return royalty on certain properties and assets in Japan for US$5 million cash.
Osisko will also have the option to purchase an additional 0.5% net smelter return royalty for $3 million after the deal’s first anniversary.
“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,” Japan Gold Chairman and CEO John Proust said.
“As a first mover in Japan, the company has assembled a significant land position of 100%-owned permits in areas of past producing gold mines and surrounding the Hishikari mine, a major gold deposit and one of the world’s highest-grade gold producers. These districts have the geological potential to support significant discoveries.”
Japan Gold said it 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 its strategic alliance agreement with Barrick Gold.
Japan Gold’s portfolio consists of 26 tenements across Japan’s three largest islands, Hokkaido, Honshu, and Kyushu.
Source: Japan Gold