Japan Gold (TSXV:JG,OTC:JGLDF) shares sank at the start of the week after the Vancouver-based junior miner announced that its five-year strategic alliance with Barrick Mining (TSX:ABX,NYSE:B) will come to an end on October 31, 2025.
Established in February 2020, the partnership aimed to explore, develop, and potentially mine gold deposits across Japan that could meet the scale of Tier 1 or Tier 2 assets.
Over the life of the deal, Barrick invested about C$23.2 million (US$17.4 million) to fund geochemical and geophysical surveys across Japan Gold’s 3,000-square-kilometre portfolio and support limited scout drilling.
News of the termination rattled investors as shares of Japan Gold plunged more than 40 percent to C$0.12 on Monday (September 29), wiping out roughly C$30 million in market capitalization and leaving the company valued at about C$40.3 million. The stock is now trading at C$0.13 (October 1) roughly a third of where it stood in 2020 when the alliance began.
Despite the setback, Japan Gold’s leadership emphasized that Barrick’s exit does not change the company’s core view of Japan as a promising gold exploration frontier.
“Barrick’s involvement with Japan Gold over the last five years reflects the growing international interest in Japan as an emerging country with the potential for the discovery of new gold deposits, and we thank Barrick for their participation in this journey,” said John Proust, Japan Gold’s chairman and CEO.
“Japan Gold remains well-funded and committed to advancing its projects, and the geological prospectivity of Japan remains unchanged,” Proust added.
Under the alliance, Barrick narrowed its focus to three priority assets: Hakuryu, Togi, and Ebino. Early survey work identified the three as holding the strongest potential.
As part of the announcement, Japan Gold released details from its most recent campaign at Ebino, located in southern Kyushu’s Hokusatsu district.
Still, the company noted that the results confirmed extensions of a regional alteration system in an area that hosts the Hishikari mine, currently Japan’s only active large-scale gold operation, as well as multiple historic mines that together have produced more than 12 million ounces of gold.
With Barrick relinquishing all rights to the alliance projects, Japan Gold now regains full control of its entire Japanese portfolio.
The company plans to advance two district-scale areas in Kyushu and Hokkaido, in addition to the three former alliance properties, either on its own or through fresh joint ventures.
Management said it is already in discussions with other parties interested in its projects.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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