Japaul lists 8bn shares at N2.5kobo per share

Japaul Gold & Ventures Plc has just secured approval from the Securities and Exchange Commission (SEC) on the Special Placement of 8 billion units of new shares at N2.50kobo to run pari-passu with the existing shares.

Jegede A. Paul, chairman and Akin Oladapo, Group Managing Director, Japaul Gold & Ventures Plc disclosed this on Monday during a press briefing in their corporate office in Lagos.

They noted that Japaul has been able to come out of the woods, “and there is light now at the end of the tunnel for the company that looked as if it was going to go out of business, coming from a huge operating losses of N2,859billion in 2021 to an operating profit of N191million in 2022, and the profit improved further to N619million in 2023, but due to economic situation as regards Foreign Exchange, the company was hit by an exchange loss of about N1.2billion, which brought the operating profit to negative. With all indications, the loss is going to be wiped out this year 2024, despite the hardship in the economy, and for the fact that Gold production has not yet commenced”.

They said, “With the recent development in our Company, we are positioned for continuous growth of our revenue and profitability. There shall be ceaseless payment of dividends in a very short time from now, and tremendous value shall be added to the Assets of the Investors to the company”.

Japaul was incorporated in 1994 but started its business in 1997 as a private company. Initially, it operated as an oil servicing company, supporting international oil companies by providing offshore logistic services such as chartering of sea going Vessels, Barges and Accommodation Barges.

“The Company also engaged in limited quarry operations in the mining business since 2005 till date. Due to low patronage of IOCs generally to Oil Servicing Companies, which Japaul is not left out, a strategic decision was made by Japaul in year 2020 to diversify into mining of Gold and other Solid Minerals, having identified the great potentials in the Mining Industry in Nigeria.

“Nigeria is so blessed with more than 44 different Minerals including Gold in different parts of the Country, and Japaul has been strategically positioned to start the business of mining Gold and other Minerals with the Vision of having both Gold produced and Gold reserve in excess of 100million ounces between now and year 2034,” Japaul noted..

“The transition into the Mining Sector is aimed at establishing a niche for the Company across the value chain of the Global Mining Business. As a result of this strategic shift, the Company changed its name from Japaul Oil & Maritime Services Plc to Japaul Gold & Ventures Plc in the year 2020.

“Japaul has many Exploration Licenses in different parts of the country and Mining Leases in different Gold fields. The Company is now being reorganized structurally by KPMG with the objective of becoming a world class Gold Mining company, not only in Nigeria but across the Globe.

“Presently, Japaul has 637,000 Inferred Reserve ounces of Gold, which worth $1.551billion on its Mining Leases that it has acquired. To this end, the Company has been able to come up with the means of financing further Exploration and to commence the preliminary development of the Gold field, with the already made clear Plan to commence Gold production before the end of 2025,” the company further said.

“Japaul has always been a trailblazer in the line of their businesses. They were the only Company in the Maritime Sector at the Stock Exchange before the diversification of its business to mining of Gold, and they are now trailing the blaze in finding strategic means of financing the mining of Gold, which happen to be an area of business that many financial institutions in Nigeria are yet to understand.

“Without doubt, the future of Crude oil business is bleak given Global warming issues, and Japaul as a Company has been able to see this situation ahead of time, hence this smart diversification into mining to add value to the wealth of their Shareholders in dividend payment and possibly giving of bonus share issues in the nearest future.

Expatriates have been engaged in Japaul, to manage the mining operations to meeting international standard. Therefore, the Special Placement being raised by Japaul is a welcome development that calls for celebration,” the company further disclosed.