Japaul Gold and Ventures Plc, one of Nigeria’s few publicly traded mining businesses, has announced plans to raise N20 billion in additional equity capital on the NGX.
The capital would be raised through “special placements with identified investors,” according to the corporate announcement.
The company announced plans to list an additional 8 billion ordinary shares worth 50 kobo each at N2.50 per share via a special placement.
According to an announcement issued by the company secretary, Michael Edeko, the move is intended to raise finances for the expansion of the business’s minefields by acquiring a 50% ownership position in H&H Mines Limited.Japaul Gold and Ventures Plc, one of Nigeria’s few publicly traded mining businesses, has announced plans to raise N20 billion in additional equity capital on the NGX.
The capital would be raised through “special placements with identified investors.” According to the corporate 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 H&H Mines has a gold reserve in excess of 20 tons based on a “competent person report,” while 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.