Southern Arc Minerals has sold its 95%-owned subsidiary, Southern Arc Minerals Japan KK (SAMJ), to Sky Ridge Resources. Upon completion of the acquisition and associated C$7 million financing, Sky Ridge consolidated its shares on a one-for-two basis and changed its name to Japan Gold Corp.
In exchange for its interest in SAMJ, Southern Arc received 23.75 million post-consolidation common shares of Japan Gold. Prior to the Acquisition, Southern Arc did not directly or indirectly own or have control and direction over any common shares of Japan Gold.
As a result of the acquisition, Southern Arc has direct and indirect beneficial ownership or control and direction over a total of 23.75 million post-consolidation common shares of Japan Gold, representing approximately 42.9% of the issued and outstanding shares on an undiluted basis.
In connection with the acquisition, Japan Gold completed a private placement financing involving the issuance of 17.5 million post-consolidation common shares for gross proceeds of C$7 million.
“Japan Gold Corp is the first foreign (international) mineral exploration company to be solely focused on advancing gold opportunities in Japan,” said Southern Arc chairman and CEO John Proust.
“Japan Gold has both the leadership experience and the capital required to undertake a substantial exploration program to rapidly advance the properties. This is a unique and exciting opportunity for Southern Arc as the largest shareholder of this promising new venture.”
Southern Arc’s leadership team will leverage its expertise in Japan with strategic roles in the new company, with John Proust as chairman and CEO, Dr Michael Andrews as president and COO and a director of Japan Gold, John Carlile as executive vice president and a director of Japan Gold, and Robert Gallagher as a director of Japan Gold. In addition, Andrew Rowe will continue to manage the exploration program in Japan as country manager of Japan Gold.
Japan Gold, through SAMJ, now holds 80 mineral prospecting rights licence applications in northern Japan, for a combined area of 27,153 hectares over eight project areas.
All 80 of the prospecting rights licence applications have been accepted for further government review, reserving the land for SAMJ and allowing for low impact forms of exploration such as mapping, surface sampling and geophysics.
Four of the project areas - Ikutawara, Numanoue, Aibetsu and Buho - target high-grade epithermal gold deposits. The other four project areas - Ponkutosan, Minamikyabe, Kobui and Eboshi - target prospective epithermal gold deposits and areas of gold-bearing advanced argillic alteration lithocaps, which could indicate the presence of a porphyry mineral environment.