Gemfields has agreed to establish a joint venture company with Mwiriti Limitada, a Mozambican registered company which will explore and progress opportunities for possible mining of gold and assorted minerals arising  from 12 greenfield licences presently held by Mwiriti in Mozambique.

The new joint venture company will be incorporated in Mozambique with  Gemfields  owning 75% and Mwiriti 25%. Mwiriti is Gemfields’ existing partner in Montepuez Ruby Mining Limitada where Mwiriti also owns 25%.

Gemfields said that the under the terms of the joint venture agreement, it will contribute  its proven exploration and project development experience together with appropriate financing with a view to building on the successes achieved in Mozambican rubies, where Gemfields and Mwiriti’s collaboration brought considerable benefits for both the regional economy and local communities. It added that Mwiriti will contribute six applications for mining concessions and six exploration licences for gold and assorted minerals. Mwiriti will receive from the joint venture an advance payment of US$ 3 million against Mwiriti’s share of future earnings arising from the operations of the new joint venture.

The licences, which begin as little as 20 kilometres from MRM’s existing operations, include an extension of the known Montepuez ruby belt with both secondary gold incidence and primary corundum mineralisation having been observed.

Sean Gilbertson, Gemfields’ CEO, said: “We have enjoyed a sound and successful partnership with Mwiriti at the Montepuez ruby mine and we look forward to furthering our joint understanding of these new licences. While the opportunities are early stage, secondary gold mineralisation has been observed and recovered in small quantities from several areas within the licence portfolio and these will therefore constitute our key focus in the year ahead.”

He clarified that as a company, Gemfields will “remain focussed on emeralds, rubies and  sapphires mined in Africa. However, given their proximity, the relative ease of mobilisation,  (and) longstanding  relationship with Mwiriti and the mineralisation observed onsite to date, we feel it is important to fully investigate the possible upside potential of these licences for our shareholders.”

In a separate announcement, Gemfields also said that it had concluded the disposal of 50% interest in Kariba Minerals Limited as per an earlier announcement, following the completion of required administrative steps and regulatory approvals at different places.

The December agreement under which Gemfields Canada Inc. (a 100% subsidiary of Gemfields) had agreed to sell its 50% stake in Kariba Minerals Ltd, the Zambian amethyst mine, to ZCCM Investments Holdings plc has been completed. Gemfields also confirmed that it has received net consideration US$ 2.375 million after deduction of the applicable property transfer taxes in Zambia.

Gemfields said its decision to dispose of its stake in Kariba was driven by the Company’s strategy of focusing on emeralds, rubies and sapphires.