Japaul Gold to raise N20bn for gold refinery, acquisition of mines companies

Japaul Gold and Ventures Plc says it has filed an application with the Securities and Exchange Commission (SEC) to raise additional capital in the sum of N20 billion through special placements from identified investors.

The company said this in a document filed on the Nigerian Exchange Limited (NGX) on Tuesday.

According to Japaul, the proceeds of the placement will be applied primarily to finance the expansion of the company’s minefields through the acquisitions and establishment of a gold refinery.

In the document signed by Michael Edeko, the company’s secretary, the acquisitions will be assets for share exchange.

Japaul Gold said it will acquire a 50 percent equity stake in H&H Mines and “a 100% acquisition of Covenant Gems & Gold Minerals Limited in Eti-oni, Atakumosa Local Government, Osun State (assets for shares exchange) and the establishment of a gold refinery to maximise value”.

“The transaction is aimed at reinforcing the primary business of the company as a mining-focused enterprise and repositioning it as a market leader in the mining sector,” the company said. 

Japaul said the mining lease of H&H Mines Limited based on the competent person report (CPR) confirms a gold reserve in excess of 20,000kg while Covenant Gems & Gold Minerals Limited minefields contain copper and mineable gold with 97 percent.