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Fura Gems widens reach in Mozambique by signing pact with GemRock to take up additional ruby mining licenses

The aggregate price for the licenses taken from GemRock plus a related non-competition agreement to protect Fura's exploration in Russia, Brazil and Mozambique are US$3.8 million and US$3.5 million respectively

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The Toronto company is also engaged in the exploration of resources in Colombia where it owns a 76% interest in the Coscuez Emerald Mine in Boyacá

Fura Gems Inc (TSXV:FURA) (OTCMKTS:FUGMF) is plowing into novel territory by forging a US$3.8 million share purchase pact with GemRock to acquire interests in a trio of ruby mines in Mozambique’s Cabo Delgado province as well as a separate pact to secure the rights to explore in Russia, Brazil and parts of Mozambique without facing competition from GemRock.

Under the deal’s terms, Fura will take full interests in SRL Mining Limitada, a Mozambican mining company which boasts ruby mining concession 8955c as well as the ruby exploration license 7414L as well as a 20% interest in Ibra Moz SA, another mining company in Mozambique, which holds the ruby mining concession 8921C.

READ: Fura Gems 'very pleased' to complete Australian sapphire mining project acquisition

Going forward, Fura expects to acquire the remaining 80% interest in Ibra Moz SA and with this, the ruby mining concession 8921C as part of its related acquisition of the New Energy Assets.

This expansion of its interest in Mozambique is set to add another 95.15 square kilometers to Fura’s land package in Mozambique’s Montepuez district.

“In the last three years, Fura’s portfolio of assets has grown significantly. We now have three important silos of colour-gemstone properties in our portfolio, emeralds from Colombia, the world’s largest emerald supplier in value, rubies from Mozambique, the world’s largest ruby supplier by volume, and sapphires from our sapphire project in Australia,” Dev Shetty, Fura’s CEO, said.

The aggregate price for the licenses plus the non-competition agreement are US$3.8 million and US$3.5 million respectively as well as another US$500,000 for the reimbursement of expenses put forward by GemRock for the acquisition.

The acquisition is an arm’s length transaction to comply with TSX Venture Exchange policies.

GemRock is a mining subsidiary of Diacolor International DMCC and its portfolio consists of ruby mining licenses in Mozambique and emerald mining licenses in Colombia and Ethiopia.

In other news, Fura has struck up a $5.5 million loan agreement with an undisclosed company to fund its acquisition of ruby mines in Mozambique.

Under its terms, the loan will bear interest at a rate of 10% per year and has a maturity date of July 31, 2020, unless Fura and its partner agree to an extension.

The Toronto company is involved in the exploration and mining of rubies in Mozambique and is also engaged in the exploration of resources in Colombia where it owns a 76% interest in the Coscuez Emerald Mine in Boyacá.

 

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Price: 0.145 CAD

TSX-V:FURA
Market: TSX-V
Market Cap: $39.45 m
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Full interview: Fura Gems does the rare trifecta with projects for Ruby...

Fura Gems (CVE: FURA) President and CEO Dev Shetty joined Steve Darling from Proactive in Vancouver on Skype from Dubai with news the company has closed on two key transactions that give them operation in Australia and Mozambique along with their other project in Colombia.  Shetty...

on 19/2/20

2 min read