Investor demand saw the firm increase the financing from the C$5 million initially sought.
"We are very pleased by the demand for the financing, and are especially delighted to welcome such prominent funds as Donald Smith Value Fund, L.P. and Libra Advisors LLC, in addition to the continuing confidence and support demonstrated by RCF Opportunities Fund L.P. in maintaining their pro rata share in the company," said John Proust, chairman and chief executive at Japan Gold in a statment.
"The recent addition of key applications in Hokkaido and Kyushu cements Japan Gold's foothold in the most prospective epithermal gold regions in Japan hosting known historic working," he added.
The Vancouver-headquartered firm is focused on the three largest islands of Japan - Hokkaido, Honshu and Kyushu.
It holds 18 gold projects which cover areas with known gold occurrences and are prospective for high-grades of the yellow metal.
In the private placement, the firm issued over 26.4 million units at C$0.27 a throw, and RCF Opportunities Fund L.P. subscribed for around 2.32 million units, maintaining its ownership interest.
Donald Smith Value Fund, L.P. subscribed for around 9.5 million units and Libra Advisors LLC subscribed for 4.85 million.
Each unit consisted of one share and one-half of a share purchase warrant, with each whole warrant entitling the bearer to buy one company share for $0.42 for 24 months from closing.
Last week, Japan Gold said it had doubled its footprint at the Sanru project on the island of Hokkaido with new claims.
The 40 new applications, which have been approved by the Japanese government, total 12,842 hectares and cover prospective geology between the Sanru project and Irving Resources Inc's (CNSX:IRV) Omu project.
The Sanru project now covers a 20 kilometre (km) by 16km under-explored area hosting five historic gold workings.
Shares advanced 5.08% in Toronto to $0.31 each.
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