Japan Gold, Barrick Mining terminate strategic alliance
Japan Gold Corp. [JG-TSXV, JGLDF-OTCQB] Barrick Mining Corp. [ABX-TSX, B-NYSE] have mutually agreed to terminate a strategic alliance agreement announced in February, 2020. The termination becomes effective as of October 31, 2025.
The alliance was established with the aim to jointly explore, develop and mine certain gold mineral properties and mining projects in Japan which have the potential to host Tier 1 and Tier 2 gold deposits.
Japan Gold received total funding of $23.1 million from Barrick for all work completed by the Barrick Alliance, primarily to create a comprehensive geochemical database covering most of the company’s 3,000 square kilometre portfolio of mineral rights across Japan’s three main islands. The database ultimately resulted in Barrick selecting three projects which they felt held significant potential. The initial scout drill programs totalling eight drill holes over 3,062 metres, including recent Ebino Project drilling, provided valuable geological insights, but the scale of the work conducted to date has not been sufficient to fully evaluate the potential of these projects, Japan Gold said in a press release.
As of the effective date, Barrick will no longer hold any right to or interest in any of Japan Gold’s portfolio of mineral rights in Japan, including the Barrick Alliance properties, Hakuryu, Togi and Ebino.
Japan Gold shares fell sharply on the news, tumbling 22% or $0.05 to 17.5 cents. The shares trade in a 52-week range of 31 cents and $0.055.
Japan Gold is a Canadian mineral exploration company with a focus on Japan’s three largest islands: Hokkaido, Honshu, and Kyushu. The portfolio of 34 gold projects cover areas with known gold occurrences and a history of mining. These projects are prospective for high-grade epithermal gold mineralization.
In its latest press release, Japan Gold announced the completion of a three hole diamond (1,528-metre) drill program at Ebino, which is located in the Hokusatsu District of southern Kyushu, which hosts past and present major gold mines.
Japan Gold said it will continue to advance two district-scale areas in Kyushu and Hokkaido, as well as several individual projects, including the former Barrick Alliance projects, independently or through new joint ventures or partnerships.
Resource World Magazine Inc. has prepared this editorial for general information purposes only and should not be considered a solicitation to buy or sell securities in the companies discussed herein. The information provided has been derived from sources believed to be reliable but cannot be guaranteed. This editorial does not take into account the readers investment criteria, investment expertise, financial condition, or financial goals of individual recipients and other concerns such as jurisdictional and/or legal restrictions that may exist for certain persons. Recipients should rely on their own due diligence and seek their own professional advice before investing.