Fura Gems Ac­quires Mozam­bi­can Ruby Li­cences

Solitaire - - SPECTRUM -

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.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.