Fura Gems Acquires Mozambican Ruby Licences
Toronto-based gemstone miner Fura Gems Inc. has entered into an agreement to acquire all of the issued and outstanding shares of Cobadale Ltd. which, on closing of this transaction, will own an 80% effective interest in four ruby licences and has applied for an additional ruby licence in the Montepuez District of Cabo Delgado province in Mozambique.
Upon closing of the transaction, Fura will hold an 80% effective interest in the assets with the remaining 20% interest, nondilutive and free carry, being held by the respective local partners. The assets cover approximately 394.24 sq. km.
Fura will purchase from the shareholders of Cobadale all of the issued and outstanding shares of Cobadale in consideration for Fura paying to the Vendors $800,000 in cash and issuing 15 million common shares of Fura – 10 million on the closing of the transaction; and 5 million if any of the assets becomes a mining concession pursuant Dev Shetty, president & CEO of Fura Gems. to the laws of Mozambique on or before September 19th 2019.
All of the Fura shares issued will be subject to a lock-up agreement pursuant to which the vendors shall be restricted from selling or transferring such securities during the twelve months following the date of closing of the transaction.
Mozambican rubies have been historically found in the northeastern part of Mozambique in the Montepuez District of Cabo Delgado province.
Dev Shetty, president & CEO of Fura, said: “Having previously had the opportunity and experience of exploring and developing potentially the world’s single largest ruby deposit in the Montepuez District of Mozambique, I am excited about the potential impact that securing assets in the same region will have on the company and its shareholders. Mozambique is currently the largest producer of rubies in the world and we are excited to enter this jurisdiction.”
Mozambican ruby deposits are approximately 500 million years old, making them much older than Burmese ruby deposits, which are approximately 60 million years. Prior to the discovery of Mozambican ruby deposits, Burma had been the major supplier of rubies for centuries.
According to the Gemological Institute of America (GIA), Mozambican rubies currently account for approximately 50% of the world’s ruby production.