Gemstone mining company Fura Gems Inc. has acquired a controlling stake in joint ventures that collectively own interests in nine additional ruby licences in the Montepuez District of Cabo Delgado province in Mozambique.
The acquisition from Mustang Resources Ltd. and Regius Resources Group Ltd. is for a total consideration of A$15 million (approximately C$14.6million), payable in A$3m (approximately C$3 million) cash and approximately 12.7 million Fura shares. On completion of the acquisition, Fura will hold the largest ruby land package in Mozambique of 1,104 sq. km.
Fura is acquiring the assets free of debt and will also acquire the related infrastructure, which includes two wash plants, security set-up, mine camps and other related infrastructure. Fura expects to commence bulk sampling activities of rubies by the end of 2018 and commence auction sales from the third quarter of 2019. The acquisition is expected to be completed in November 2018.
Fura’s Mozambique operations will be run by its newly-formed team of gemstone experts who were previously involved with discovering and successfully building the world’s largest ruby mine in Mozambique. Fura is exploring the benefits of pursuing a dual listing of its common shares on the London Stock Exchange.
Dev Shetty, Fura’s president and CEO, said, “I am pleased to announce the merger of these ruby assets with those of our existing licences in Mozambique, transforming Fura into the largest ruby group by licence area in the country. Our team has in-depth experience in the Mozambique ruby sector, having previously worked in Mozambique since 2011 where they were instrumental in discovering and developing what is largely considered the world’s largest ruby deposit. Based on our extensive work in the country, we believe these combined licences to be some of the highest quality ruby licences available in Mozambique.”
Fura’s Mozambique operations will be run by its newly-formed team of gemstone experts who were previously involved with discovering and successfully building the world’s largest ruby mine in Mozambique.