Japan Gold Signs Drilling Contract with Sumiko Resources Exploration & Development Co., Ltd. and Reaches Agreement to Purchase Three Diamond Core Drill Rigs
TSX-V: JG
Japan Gold Corp.
Suite 650 – 669 Howe Street, Vancouver, BC V6C 0B4 Canada
Phone: +1 778-725-1491
www.japangold.com
NEWS RELEASE
Japan Gold Signs Drilling Contract with Sumiko Resources Exploration & Development Co.,
Ltd. and Reaches Agreement to Purchase Three Diamond Core Drill Rigs
June 1, 2017– Vancouver, BC - Japan Gold Corp. (TSX-V: JG) (OTCQB: JGLDF) (“Japan Gold” or the
“Company”) is pleased to announce that the Company has concluded an agreement with Sumiko Resources
Exploration & Development Co., Ltd. (“SRED”) to manage and operate its drilling programs in Japan. To support
this contract, Japan Gold has agreed to purchase three diamond core drill rigs that will be operated by SRED.
SRED, founded in 1963, is a wholly owned subsidiary of Sumitomo Metal Mining Co., Ltd., a major non-ferrous
metal mining and smelting company based in Japan. SRED offers consulting services for resource exploration and
environmental investigation using geological, geophysical exploration and related technologies including drilling.
SRED was instrumental in the prospecting, development and exploitation of the Hishikari Mine, Japan’ s largest
and highest grade operating gold mine.
John Proust, Chairman and CEO of Japan Gold, commented, “We are very pleased to partner with SRED in this
new venture. Their experience and reputation in Japan is unsurpassed and will be particularly valuable as we seek
to unlock the potential of our large project portfolio. Undoubtedly, this partnership will enhance the capability and
credibility of Japan Gold Corp.”
In conjunction with the SRED contract, Japan Gold has agreed to purchase three portable diamond core drill rigs
from PT. Promincon Indonesia (“PMC”) for $544,000. PMC manufactures a range of portable diamond core drill
rigs and is an established diamond core drill ing contracting company incorporated in Indonesia. A director and
officer of Japan Gold has a controlling interest in PMC.
The purchase was approved by the independent members of the Japan Gold Board of Directors and is a “related
party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders
in Special Transactions (“MI 61 -101”). The purchase is exempt from the valuation and minority shareholder
approval requirements pursuant to sections 5.5 (a) and 5.7 (1)(a) respectively of MI 61-101.
Acquisition of the two PMC400 drill rigs and one PMC700 drill rig will give the Company independence and
flexibility on the timing and execution of its drill programs. Also, the Company sees cost saving benefits of owning
its own drill rigs . The compact nature of these diamond core drill rigs allows for rapid set -up, move and the
remediation of drill sites . T hey also have a smaller environmental footprint when compared to conventional
equipment. The drill rigs have been proven and tested in similar geological environments . The PMC400 and the
PMC700 drill rigs can core-drill to depths of over 400 meters and 700 meters in NQ core size respectively.
On behalf of the Board of Japan Gold Corp.
“John Proust”
Chairman & CEO
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About Japan Gold Corp.
Japan Gold Corp. is a Canadian mineral exploration company focused solely on gold and copper-gold exploration
in Japan. The Company has applied for 173 prospecting rights licenses in Japan for a combined area of 57,337
hectares over eleven separate project s. Thirty-two of the applications have been granted as Prospecting Rights.
The applications cover areas with known gold occurrences and a history of mining, and are prospective for both
high-grade epithermal gold mineralization and gold -bearing lithocaps, which could indicate the presence of
porphyry mineralization. Japan Gold’s leadership team has decades of resource industry and business experience,
and the Company has recruited geologists and technical advisors with experience exploring and operating in Japan.
More information is available at www.japangold.com or by email at [email protected].
Japan Gold Contacts
John Proust
Chairman & CEO
Phone: 778-725-1491
Email: [email protected]
Cautionary Note
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements relating to expected or anticipated future events and
anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and
uncertainties, such as general economic, market and business conditions, competition for qualified staff, the
regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or
changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding
the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties
regarding the Company’s ability to execute and implement future plans, and the occurrence of unexpected
events. Actual results achieved may vary from the information provided herein as a result of numerous known
and unknown risks and uncertainties and other factors.