as at September 11, 2024 Japaul Gold & Ventures Plc has secured approval from the Securities and Exchange Commission (SEC) to proceed with a private placement of 8 billion new shares at N2.50 each, aiming to raise N20 billion in capital. This move marks a significant step in the company's transformation from an oil services company to a major player in Nigeria's mining sector.
According to Jegede Paul, Chairman of Japaul Gold & Ventures Plc, this private placement is a pivotal milestone for the company, enhancing its financial base and advancing its goal of becoming a leading global gold mining entity. The company aims to exceed 100 million ounces of gold reserves by 2034 and currently holds 637,000 inferred reserve ounces of gold, valued at approximately $1.55 billion.
The capital raised from this private placement will enable Japaul Gold & Ventures Plc to begin gold production by the end of 2025 and target a turnover of N20 billion to N30 billion. The company's focus on mining aligns with global trends, positioning it to capitalize on the sector's potential.
Japaul Gold and Ventures Plc has announced plans to raise N20 billion in equity capital through a private placement of 8 billion ordinary shares. The company intends to use the proceeds to finance its expansion plans, including:
1. Acquiring a 50% stake in H&H Mines.
2. Acquiring a 100% stake in Covenant Gems and Gold Minerals Limited via an assets-for-shares exchange.
3. Establishing a gold refinery to maximize value.
According to a competent person's report, H&H Mines Ltd has gold reserves exceeding 20,000kg, while Covenant Gems and Gold Minerals Ltd's minefields contain copper and mineable gold.
Japaul Gold's financial performance has been strong, with a profit of N661.6 million in the 9 months of 2023, up from N24 million in the comparable period in 2022. The company's turnover grew by over 115% year-on-year to N2.183 billion, driven by increased operational activities.
With this capital raise, Japaul Gold & Ventures Plc is well-positioned for growth and continued success in Nigeria's mining sector, emphasizing its commitment to operational security and adherence to global standards in mining operations.
Japaul Gold & Ventures Plc reported earnings results for the third quarter and nine months ended September 30, 2024. For the third quarter, the company reported sales was NGN 927.68 million compared to NGN 319.59 million a year ago. Net income was NGN 174.79 million compared to NGN 74.58 million a year ago. For the nine months, sales was NGN 2,139.93 million compared to NGN 2,183.75 million a year ago. Net income was NGN 578.13 million compared to NGN 661.63 million a year ago.
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