Solidcore Resources, a Kazakhstan-based gold mining company, is set to invest $25 million in exploration across five sites in Japan as part of a strategic alliance with Japan Gold Corp., a Canadian-registered mineral exploration company. Solidcore may acquire stakes of up to 80% in some of the joint projects, the company said in a statement on Sept. 23.
In the first stage, Solidcore will fund a three-year exploration program at Japan Gold sites on Hokkaido and Kyushu. After this stage, the company may acquire a 49% interest in one or more sites, depending on the exploration results.
In the second stage, Solidcore can increase its stake to 70% by funding a preliminary feasibility study for a project. The stake could be raised to as much as 80% after Solidcore funds a bankable feasibility study. The company will consider each potential acquisition separately.
Solidcore invested an additional $6.85 million directly in Japan Gold. The company acquired 78.8 million shares of the Canadian explorer, securing an 18.81% stake. If Solidcore exercises the acquired warrants, its stake could rise to 19.9%.
As part of the deal, Solidcore also secured the right to appoint two members to Japan Gold’s board of directors. Solidcore adviser Victor Flores and Executive Vice President for Corporate Governance and Compliance Tatia Tchedaeva have already joined the board.
The alliance covers five sites — Hakuryu, Bajo, Mizobe, Ryuo and Aibetsu — located in areas with a history of gold mining. Notably, the geological structure of the Mizobe site resembles that of the Hishikari deposit, which Japan Gold estimates contains 13 million ounces of gold.
Japan Gold is a Canadian exploration company operating in Japan. Its exploration portfolio covers more than 3,000 square kilometers. Solidcore is registered at the Astana International Financial Centre and listed on the AIX. The company operates two active gold mining facilities and is developing the Ertis POX project in Kazakhstan.
Solidcore previously announced plans to return up to $1.2 billion to shareholders through a share buyback. The company intends to repurchase up to 102.9 million shares — representing approximately 23.2% of its share capital — at $11.66 per share. Investors can submit their requests until Oct. 12, while the buyback program itself is subject to shareholder approval at a general meeting on Sept. 30. As of Sept. 1, Solidcore held $1.4 billion in cash and had a net cash position of $747 million.
In August, Solidcore subsidiary Tin One Mining signed a memorandum to develop a mining and processing complex at the Syrymbet tin deposit in the North Kazakhstan region. Preliminary investment is estimated at $336.5 million. If Solidcore’s board of directors approves the project, it could create approximately 800 new jobs.
