Japaul Gold and Ventures Plc have filed an application with the Securities and Exchange Commission (SEC) to raise additional capital in the sum of N20billion through special placements with identified investors.
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 informed the Nigerian Exchange Limited (NGX) and the investing public that the proceeds of the placement would be applied primarily to finance the expansion of the company’s minefields.
This will be done through the acquisition of 50percent equity stake in H&H Mines and a 100 percent acquisition of Covenant Gems & Gold Minerals Limited in Eti-oni, Atakumosa, Local Government, Osun State (assets for share exchange) and the establishment of a gold refinery to maximise value.
“The mining lease of H&H Mines Limited, based on the Component Persons Report (CPR), confirms a gold reserve in excess of 20,000kg while Covenant Gems & Gold Minerals Limited minefields contain copper and mineable gold at 97percent,” Japaul Gold and Ventures said.