Japaul Gold and Ventures Plc is gearing up to raise a whopping N20 billion in equity capital on the Nigerian Exchange, also known as the NGX. The purpose of this capital raise is to acquire mine fields and expand its operations. The company plans to achieve this by offering special placements to identified investors.
In a recent corporate listing on the NGX, Japaul Gold and Ventures Plc revealed its intention to list an additional 8 billion ordinary shares valued at 50 kobo each, at a price of N2.50 per share through a special placement. This move is part of the company’s strategy to raise funds for the expansion of its minefields, including the acquisition of a 50% equity stake in H&H Mines Limited, the complete acquisition of Covenant Gems and Gold Minerals Limited in Atakunmosa LGA of Osun State, and the establishment of a gold refinery.
The announcement, signed by the Company Secretary, Michael Edeko, highlighted the significance of this capital raise. It is driven by the need to secure funds for the expansion of the company’s minefields, particularly in light of the gold reserves held by H&H Mines and the valuable minefield containing gold and copper owned by Covenant Gems and Gold Minerals.
Japaul Gold and Ventures Plc, listed at N1.39 per share, has experienced an impressive year-to-date share price appreciation of 396%. This makes it one of the best-performing stocks on the NGX in 2023.
The company’s pursuit of stakes in H&H Mines dates back to 2020, but it was contingent on Japaul’s ability to raise the necessary funds.
The move to raise N20 billion in equity capital is a significant development for Japaul Gold and Ventures Plc, as it positions the company for substantial growth and expansion in the mining sector. With the potential acquisition of valuable minefields and the establishment of a gold refinery, the company is poised to make a significant impact in the industry.
This strategic move by Japaul Gold and Ventures Plc underscores its commitment to growth and innovation in the mining sector. As the company prepares to raise the N20 billion equity capital, all eyes are on the NGX to see how this development will shape the future of the mining industry in Nigeria.