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Japan Gold (TSXV:JG,OTCQB:JGLDF) shares sank at the start of the week after the junior miner announced its five year strategic alliance with Barrick Mining (TSX:ABX,NYSE:B) will come to an end on October 31.
Established in February 2020, the partnership aimed to explore, develop and potentially mine gold deposits across Japan that could meet the scale requirements for tier one or tier two assets.
Over the life of the deal, Barrick invested about C$23.2 million (US$17.4 million) to fund geochemical and geophysical surveys, as well as support limited scout drilling, across Japan Gold’s 3,000 square kilometer portfolio.
News of the termination rattled investors, with Japan Gold plunging over 40 percent to C$0.12 on Monday (September 29), wiping out roughly C$30 million in market cap and leaving the company valued at about C$40.3 million. The stock was trading at C$0.13 as of Wednesday (October 1), roughly a third of where it stood in 2020 when the alliance began.
Japan Gold performance, September 25 to October 1, 2025.
Chart via Google Finance.
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."
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 Monday's announcement, Japan Gold released details from its most recent campaign at Ebino, located in Southern Kyushu’s Hokusatsu district. The company notes that the results confirm 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 will regain 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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