Japaul Gold Secure N26b Sand Mining Deal To Transform Lekki’s Gracefield Island Into The Next Banana Island

Japaul Gold and Ventures Plc has solidified its place in the mining and real estate sectors with the announcement of a N26.0 billion contract for sand mining at Gracefield Island, a strategic development at the end of Chevron Drive, Lekki, Lagos. The deal, signed with Gravitas Investment Limited, promises to reclaim swamps and lagoons, transforming the area into a high-end residential and commercial hub that could rival the luxury of Banana Island.

The ambitious reclamation project will see Japaul Gold mining 3.5 million cubic meters of sand to restore 200 hectares of land over the next 26 months. According to a disclosure published on the Nigerian Exchange (NGX) on November 25, 2024, the project will pave the way for world-class amenities, including a golf course, a golf estate, a boat club, yacht parking, and shopping malls. These developments signal the beginning of a transformation that will turn Lekki into one of Lagos’ most sought-after neighborhoods.

The reclamation of Gracefield Island promises to be a landmark project in the evolution of Lagos’ real estate market. Situated in the prime location of Lekki, at the end of Chevron Drive, the island will be developed with luxury in mind. Once completed, it will offer some of the most sought-after residential and commercial spaces in the city.

The new estate will be designed with top-tier amenities that cater to the growing demand for upscale housing and recreational spaces. Developers are looking to create a new “Banana Island,” one of Lagos’ most affluent residential areas. This project, therefore, represents not only a real estate venture but also a landmark step in the evolution of Nigeria’s luxury property market.

Japaul Gold’s involvement in this project highlights the company’s versatility in business and strategic investments. While the company’s core focus remains on gold mining, particularly in its gold ore assets situated in Osun, Niger and Taraba States, its utilization of about four (4) massive dredgers and dry plants and equipment leading to sand mining and land reclamation demonstrates its capacity to continuously diversify and generate income across multiple sectors.

Japaul Gold and Ventures Plc’s intensification of its sand mining and land reclamation comes as part of a broader strategy to finance its gold mining ambitions. Recently, the company completed a private placement to raise funds for its various gold mining projects across Nigeria, where it holds mining leases and exploration permits. This is a significant step toward securing the capital required for the company’s transition into full-scale gold production, which is projected to begin in 2026.

One of Japaul Gold strategic assets is its mine sharing the same vein with Segilola Operating Company Nigeria Limited in Eti-Oni, Ilesa, Nigeria. Recalled that Segilola is a wholly owned subsidiary of Thor Explorations Limited, listed on the Toronto Venture Exchange (TVX) and the London Stock Exchange (LSE). It is reputed that Segilola’s production over the past 3 years averages 85,000 ounces annually, which translates to over $200.0 million revenue annually since production commenced in Q2, 2022.

Japaul Gold is nearing the end of its exploration phase in Eti-Oni, Ilesha, and approaching the its pre- feasibility study phase including ongoing collaboration with artisanal miners. Its operations is set to kick off as soon as the necessary infrastructure are in place. The installation of a custom-built gold processing plant, along with the development of supporting infrastructure, is essential before gold production can commence. This investment, while taking time, will position Japaul Gold as a major player in Nigeria’s mining industry.

In the interim, the company’s sand mining, sand winning and land reclamation ventures will serve as key revenue sources for the company. The N26.0 billion contract with Gravitas Investment Limited will be instrumental in sustaining operations and generating income until gold production fully commences. This diversification strategy also reflects Japaul’s commitment to ensuring stable cash flow and growth for its shareholders while it advances its mining projects in Osun, Niger, Oyo and Taraba States.

The sand mining contract at Gracefield Island is not just an opportunity to tap into the lucrative real estate and land banking market but also an important element in Japaul Gold’s financial health. Sand mining and wining is a significant industry in Nigeria, particularly for land reclamation projects, and Japaul Gold’s involvement will bolster its financial position while it prepares for its gold production phase.

With the mining of 3.5 million cubic meters of sand, the reclamation of 200 hectares of land will play a crucial role in the creation of an exclusive island community. The project will not only transform the landscape but also provide high-paying jobs and business opportunities for local communities. The development of the area will, in turn, enhance the overall economic activities in Lagos State.

Beyond the sand mining venture, Japaul Gold’s long-term vision lies in its gold mining projects across Nigeria. The company is particularly focused on two key areas: the Eti-Oni Gold Mines in Osun State and operations in Magama Local Government Area (LGA), Niger State.

At Eti-Oni, Japaul Gold is working diligently to prepare for its gold mining operations, with the region known for its rich mineral deposits. The small-scale mining activities underway in Ilesha, Osun State are contributing to local economic development. Similarly, in Magama LGA, Niger State, Japaul’s operations are expected to play a vital role in shaping the local economy while adhering to sustainable mining practices.

According to dailylight.com.ng, the gold mining in these regions will provide a significant boost to Japaul Gold’s portfolio, and the company is optimistic about the prospects of both large-scale and small-scale mining operations. As the company continues to explore these areas, gold production could become one of Nigeria’s foremost contributors to economic growth.

Japaul Gold has demonstrated remarkable growth in its financial performance, signaling its readiness for future challenges. The company reported a pretax profit of N174.7 million for Q3 2024, marking a 134.36% increase from the same period in the previous year. Additionally, revenue for the third quarter saw an impressive 190.27% increase, rising from N319.5 million in Q3 2023 to N927.6 million in Q3 2024.

The majority of the company’s revenue came from its offshore unit, which contributed N1.5 billion over the first nine months of 2024. The Japaul Dredging team also added significantly, with a contribution of N520.9 million. With its consistent upward trajectory in the stock market, Japaul Gold’s shares were priced at N2.16 on November 26, 2024, indicating strong and sustainable investor’s confidence in the company.

As Japaul Gold progresses with its sand mining projects and prepares for full-scale gold production, the company is setting itself up for long-term success. The reclamation of Gracefield Island is just one facet of its diverse portfolio, with substantial growth expected in both its gold mining operations and other ventures.

With a focus on sustainability, revenue generation, and shareholder value, Japaul Gold is positioned to become a dominant player in the Nigerian mining and real estate sectors. As the company continues to expand its operations and diversify its income streams, its future prospects look increasingly promising.

For more updates on Japaul Gold’s ongoing projects and performance, stay tuned to developments in the Nigerian stock market and business news.