Japaul Gold has signed a sand mining contract with Gravitas Investment Limited, the developers of Gracefield Island. The contract, valued at N26 billion, involves the extraction of 3.5 million cubic meters of sand for the reclamation of swamps and lagoons at Gracefield Island, located at the end of Chevron Drive, Lekki. The project is scheduled for completion within 26 months.
Japaul, which holds mining leases and exploration permits for various gold fields, has announced that exploration activities are nearing completion, with gold production projected to commence by 2026. David Dawson, Japaul’s mining manager also noted that for gold production to commence, Japaul will install a custom-made gold processing plant and develop the necessary infrastructure.
According to the corporate disclosure signed by Michael Edeko, Japaul’s company secretary, the sand mining project is expected to sustain the company financially while preparations for gold production are underway.
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Recall that in September 2024, Japaul raised N20 billion through a private placement. The funds raised through the private placement have been allocated to gold mining, reflecting the company’s strategic shift from its roots in oil and maritime services to establishing itself as a gold mining enterprise.
More specifically, the funds were used to acquire a 50 percent stake in H&H Mines Limited and a 100 percent stake in Covenant Gold & Jewelry Limited. H&H Mines holds two mining leases. The company reports holding gold exploration licenses covering a total area of approximately 300 square kilometers across various locations in Nigeria.
Gracefield Island, the location of the reclamation plan presently spans over 100 hectares, however, has over 200 hectares yet to be reclaimed. It is a joint venture between the Lagos State Government and Gravitas Investment, and the project is poised to rival developments such as Banana Island.
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