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FURA Gems

Fura Gems agrees amended terms for ruby prospecting license acquisition in Mozambique

Instead of Azores receiving 2.5 million Fura shares under the previous deal, it will now only be issued around 1.364 million shares on closing

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In exchange, Fura will now also pay Azores, on closing, an amount equal to C$454,264.63 in cash

Fura Gems Inc (CVE:FURA) (OTCMKTS:FUGMF) shares rose on Friday after the firm said it has agreed amended terms to its previously announced acquisition of a ruby prospecting license in the Montepuez district of Cabo Delgado province in Mozambique.

In morning trading, Fura shares on the OTC markets were 4.1% higher at US$0.177 and held steady at C$0.23 in Toronto.

In July last year, the firm struck a share purchase agreement with vendor Azores Overseas Inc (Azores) over the acquisition of a 100% interest in the license No. 5572L.

READ: Fura Gems again extends hard deadline for Mozambique ruby acquisition

In a statement today, Fura said that, as consideration, Azores has now agreed to receive around 1.135 million fewer Fura shares upon completion. In exchange, Fura will now also pay Azores, on closing, an amount equal to C$454,264.63 in cash to assist in paying certain taxes owed by the vendor company.

Therefore, instead of Azores receiving 2.5 million Fura shares under the previous deal, it will now only be issued around 1.364 million shares on closing.

The Fura shares are subject to a regulatory hold period of four months and one day from the closing of the deal, which is expected to be completed by September 15 this year.

Fura is involved in the exploration and mining of rubies in Mozambique through its 80% interest in four ruby licenses. It is also engaged in the exploration of resources in Colombia where it owns a 76% interest in the Coscuez Emerald Mine in Boyacá.

 -- Adds share prices --

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Price: $0.17

Market: TSX-V
Market Cap: $22.98 m
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