Fura Gems Inc. announced yesterday that it had entered into “a merger of ruby assets agreement” with Mustang Resources Ltd (Mustang) and Regius Resources Group Ltd (Regius) for a total consideration of A$ 15 million (approximately C$ 14.6million)”,  of which  A$ 3m (approximately C$ 3 million) will be paid in cash and the rest through the transfer of  approximately 12.7millionFura shares.   

A schedule has been outlined for the completion of the agreement which will give Fura controlling ownership of nine additional ruby licenses (collectively, the Assets) in the Montepuez District of Cabo Delgado province in Mozambique (the Acquistion). 

“On completion of the Acquisition, Fura will hold the largest ruby land package in Mozambique of 1,104 sq. km,” the Company noted.

The Assets come to Fura “free of debt”; and the Company will also acquire the related infrastructure, which includes two wash-plants, security set-up, mine camps etc.

The acquisition process is expected to be completed by November 30, 2018; and Fura plans to commence bulk sampling activities of rubies by the end of 2018 and commence auction sales from Q3 2019.

Dev Shetty, Fura’s President and CEO, commented: “I am pleased to announce the merger of these ruby assets with those of our existing licenses in Mozambique transforming Fura into the largest ruby group by licence area in the country.”  

He added: “Based on our extensive work in-country, we believe these combined licenses to be some of the highest quality ruby licenses available in Mozambique.”

Fura has expressed its intention to invest up to C$ 25 million (subject to operational success) over a period of three years, in a programme of drilling, bulk sampling and production mining on the properties comprising the Assets.