Japan Gold shares plunge as Barrick alliance ends

The strategic alliance between Japan Gold (TSXV: JG) and Barrick Mining (TSX: ABX; NYSE: B) is coming to an end after more than five years and C$23 million ($17 million) in spending.

Japan Gold announced that the parties have agreed to mutually terminate their partnership, effective as of Oct. 31, 2025. Established in February 2020, the Japan Gold-Barrick alliance aims to explore, develop and mine certain mineral properties that it believes have the potential to host top tier gold deposits. The former would provide a large selection of projects under its Japan-based portfolio, while the latter would sole fund the initial work supporting the projects’ evaluation.

“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, CEO and chair of Japan Gold.

Few Western explorers

Vancouver-based Japan Gold is among a small number of Western exploration companies working in the East Asian country, where the government in 2012 amended its mining law to kick start gold mining, an industry that was mostly dormant since 1943 when gold mines were closed during the Second World War.

To date, Barrick has invested about C$23.2 million into the alliance, primarily to create a comprehensive geochemical and geophysical database covering most of Japan Gold’s mineral rights over 3,000 sq. km across Japan’s three main islands. The database ultimately resulted in Barrick selecting three projects – Hakuryu, Togi and Ebino – that it considered to hold significant potential.

The announcement of the alliance’s end came on the same day that Barrick CEO Mark Bristow announced his resignation, after nearly seven years of leading the gold major.

While initial scout drilling on properties under the alliance provided valuable geological insights, the scale of work conducted to date has not been sufficient to fully evaluate their potential, Japan Gold said.

Shares of Japan gold plummeted 44% to C14¢ on the termination, sending its market capitalization down to C$37.3 million. The stock is now trading at about a third of where it was in 2020, when its partnership with Barrick began.

Next steps

Following the termination, the Canadian gold junior said it will continue to advance the two district-scale areas in Kyushu and Hokkaido, as well as several individual projects, including the former Barrick alliance projects. This would be done either independently or through new joint ventures or partnerships, with discussions ongoing with interested parties, the company added.

“Japan’s exceptional geology, rich history of high-grade gold mining, underexplored district-scale opportunities and stable mining regulatory environment continue to attract industry participants seeking a new, highly prospective geopolitically safe jurisdiction,” Proust added.

Recently, Japan Gold completed a three-hole diamond drill program at the Ebino project in southern Kyushu, one of three projects under the Barrick alliance. This drilling confirmed the extension of a regional alteration system in the 40 x 20 km Hokusatsu district, which hosts past and present major gold mines, including the only active large-scale gold producer in Japan, Sumitomo Metal Mining’s Hishikari mine on Kyushu, as well as several historic gold mines.

Together, these mines have produced more than 12 million oz. of gold, the company said, noting that it holds the majority of prospective mineral rights in the district.