Japaul Gold wants to raise ₦500 billion, increase shares sevenfold

Japaul Gold & Ventures Plc is seeking shareholder approval to raise up to ₦500 billion and expand its share capital from 14 billion to 100 billion shares as it accelerates investment in gold and mineral mining projects across Nigeria and abroad.

The proposal is contained in a notice filed with regulators ahead of the company’s 20th Annual General Meeting scheduled for June 30, 2025. The meeting will be held virtually.

According to the notice, shareholders will be asked to approve four major resolutions, including increasing the authorized share capital and allowing the board to raise equity capital through ordinary or preference shares, either locally or internationally, via methods such as private placements, public offers, or book building.

The board is also seeking authorization to carry out a share reconstruction as part of the broader capital restructuring plans.

The latest move comes months after Japaul received regulatory clearance to raise N20 billion via private placement. The company said the capital raise is necessary to support its gold mining development and asset acquisitions.

Japaul Gold has recently ramped up its investment in mining assets, with its total asset acquisition rising 132.8 percent to ₦33.27 billion as of December 2024, compared to ₦14.3 billion the previous year.

The company, which transitioned from oil and maritime services to focus primarily on mining and offshore services, now engages in the exploration of gold and other minerals such as tin, copper, lithium, lead, and zinc. It also offers dredging and vessel chartering services to the offshore oil and gas industry.

Financials

The firm reported a profit of ₦1.7 billion in 2024, reversing a ₦674 million loss posted in 2023. Net assets stood at ₦18.5 billion as of March 2025.

However, despite the profit turnaround, the company recorded negative cash flow from operations amounting to ₦468 million, down from a positive ₦158 million in 2023. The shortfall suggests that its core operations are not yet generating sufficient cash, prompting a shift in strategy, including diversifying operations offshore.

Company executives have said that new capital will enable gold production to begin by the end of 2025 and support a turnover target of ₦20–₦30 billion. Japaul also aims to raise its gold reserves significantly by 2034 as part of a long-term strategic plan.