Japaul Gold to raise N20bn equity capital on NGX for mine fields acquisition

Japaul Gold and Ventures Plc, has announced plans to raise additional equity capital of N20 billion on the floor of the Nigerian Exchange, the NGX.

The company, one of the few listed mining companies in Nigeria in a corporate listing on NGX disclosed that capital will be raised through “special placements with identified investors”.

The company announced plans to list an extra 8 billion ordinary shares valued at 50 kobo each, at N2.50 per share through a special placement.

According to the announcement signed by the Company Secretary, Michael Edeko, the move is aimed at raising funds for the expansion of the company’s minefields through the acquisition of a 50% equity stake in H&H Mines Limited; 100% acquisition of Covenant Gems and Gold Minerals Limited in Atakunmosa LGA of Osun State and the establishment of a gold refinery.

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The company noted that this development became imperative because H&H Mines has a gold reserve of over 20 tonnes based on a “competent persons report” while the Covenant Gems and Gold Minerals has a minefield that contains gold and copper.

Japaul Gold and Ventures Plc (JAPAUL) listed at N1.39 per share has achieved a year-to-date share price appreciation of 396%, representing one of NGX’s best-performing stocks in 2023.

The deal to acquire stakes in H&H Mines first came up in 2020, however, it was hinged on Japaul’s ability to raise funds.

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