Japan Gold (TSXV: JG) has formed a strategic alliance with Solidcore Resources plc, which will fund $35 million in exploration across 5 of Japan Gold’s projects over the next 3 years.
Solidcore, formerly known as Polymetal International, produced about 400,000 ounces of gold in 2025 from two mines in Kazakhstan and generated US$348 million in free cash flow. The alliance gives Japan Gold a well capitalized producer as a partner, and gives Solidcore a foothold outside Central Asia.
Completing the spend earns Solidcore a 49% stake in up to 5 joint ventures, 1 for each target area. It can then move to 70% in any venture by solely funding a prefeasibility study within 3 years, and to 80% by solely funding a bankable feasibility study within 3 years of that.
After a bankable study, Japan Gold has 3 options. It can fund its 20% share toward production, sell half to Solidcore and convert the remainder into a 1% net smelter return royalty, or sell its full 20% at a price tied to the study’s metrics.
Japan Gold will collect a US$500,000 annual management fee for running the programs. Solidcore holds a right of first refusal on the company’s 22 remaining pipeline projects in the event of a third-party offer, and has the casting vote on the 4 member committee overseeing the alliance.
The deal also carries an equity component. Solidcore bought 78.8 million units at $0.12 apiece for $9.45 million, a 50% premium to market, giving it an 18.81% stake. That rises to 19.9% if its warrants, exercisable at $0.135, are converted. Solidcore also placed two nominees, Victor Flores and Tania Tchedaeva, on Japan Gold’s board.
Existing shareholder Equinox Partners added $1.07 million at the same price and converted $2.85 million in debentures and accrued interest into shares, leaving Japan Gold debt free. Equinox holds 29.3% of the company.
Separately, OR Royalties will pay US$3 million to lift its royalty on Japan Gold’s properties from 1.5% to 2%, with closing expected by November 4. Combined, the transactions bring $50 million in committed capital to Japan Gold.
Proceeds from the placements and royalty sale will go toward the pipeline projects, expanded drilling capacity and working capital.
Chairman and CEO John Proust called Japan “one of the world’s best yet underexplored gold jurisdictions,” and said the company’s decade of groundwork as the country’s first mover lines up with Solidcore’s push to diversify its reserves geographically.
Solidcore CEO Vitaly Nesis noted the 5 selected areas sit near past-producing mines, adding that the alliance lets his company concentrate capital on high-priority targets.
Japan Gold last traded at $0.145 on the CSE.
