Japaul Gold and Ventures Plc, one of the few listed mining companies in Nigeria has announced plans to raise additional equity capital of N20 billion at the NGX.
According to the company announcement, the capital will be raised through “special placements with identified investors”.
According to a corporate filing on the NGX website found by Naijaonpoint, 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.
The establishment of a gold refinery
It is noted that the H&H Mines has a gold reserve in the excess of 20 tonnes based on a “competent persons report” while the Covenant Gems and Gold Minerals has a minefield that contains gold and copper.
With a share price of N1.39, Japaul Gold and Ventures Plc (JAPAUL) 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.