SEC approves Japaul’s N20bn capital raise

The Securities and Exchange Commission has approved Japaul Gold & Ventures Plc to proceed with a private placement of eight billion new shares at N2.50 each.

This was disclosed by the Chairman of Japaul Gold & Ventures Plc, Jegede Paul, at a press briefing held in the Ikeja area of Lagos State on Monday.

He stated that the move marked a step in the company’s transformation from an oil services company to a player in Nigeria’s mining sector, strengthening the company’s financial standing and supporting its expansion into mining.

“Receiving SEC approval for our special placement is a pivotal milestone for Japaul. This development significantly enhances our financial base and advances our goal of becoming a leading global gold mining entity. We are dedicated to harnessing Nigeria’s mineral resources to drive substantial growth and deliver value to our shareholders,” he said.

Japaul transitioned from oil and maritime services to gold mining in 2020, rebranding itself as Japaul Gold & Ventures.

Paul stated that the company aimed to exceed 100 million ounces of gold reserves by 2034 and currently held 637,000 inferred reserve ounces of gold, valued at approximately $1.55bn.

He stated, “We have made a remarkable turnaround from an operating loss of N2.86bn in 2021 to an operating profit of N619bn in 2023. Despite facing an exchange loss of N1.2bn due to foreign exchange fluctuations, we are strategically navigating these challenges and are poised for continued growth.”

The Group Managing Director, Japaul Gold & Ventures Plc, Akin Oladapo, added that the capital raised would enable the company to begin gold production by the end of 2025 and target a turnover of N20bn to N30bn.

“We are excited about the prospects that this special placement brings. The capital raised will enable us to begin gold production by the end of 2025 and target a turnover of N20bn-N30bn. Our focus on mining aligns with global trends and positions us to capitalize on the sector’s potential,” he asserted.

He emphasised the company’s commitment to operational security, adding, “We have implemented robust measures to safeguard our mining areas, especially in high-risk regions such as Zamfara. Our engagement of international experts ensures that we meet global standards in mining operations.

“This placement not only signifies our strategic foresight but also underscores our commitment to enhancing shareholder value. With this capital raise, Japaul is well-positioned for growth and continued success in Nigeria’s mining sector.”