Fura Gems on a merger of ruby assets
Fura Gems, a new gemstone mining and marketing company with emerald and ruby assets in Colombia and Mozambique, respectively has entered into a merger of ruby assets agreement, pursuant to which the Company will acquire controlling ownership in the issued and outstanding shares of entities and interests in joint ventures that collectively own interests in nine additional ruby licenses in the Montepuez District of Cabo Delgado province in Mozambique.
Acquisition of nine ruby assets in Mozambique from Mustang Resources Ltd and Regius Resources Group Ltd for a total consideration of A$15 million (approximately C$14.6million), payable in A$3m (approximately C$3 million) cash and approximately 12.7million.
Fura shares on the schedule as, 1: On completion of the Acquisition, Fura will hold the largest ruby land package in Mozambique of 1,104 sq. km; 2: Acquisition breakdown: On completion of the Acquisition, Fura will pay A$3million (approximately C$3million) in cash and an additional A$4million in Fura shares at C$0.50 per share.
3: 12 months after completion of the Acquisition, Fura will issue A$4million in shares at C$1.40 per share; and
4: 20 months after completion of the Acquisition, Fura will issue A$4million in shares at C$1.80 per share. 5: 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.
5: Fura expects to commence bulk sampling activities of rubies by the end of 2018 and commence auction sales from Q3 2019; 6: Acquisition is expected to be completed by 30thNovember 2018; 7: Fura’s Mozambique operations to berun 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.
8: 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, 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.
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-country, we believe these combined licenses to be some of the highest quality ruby licenses available in Mozambique.
The initial ground work has already been done by Mustang and Regius, which includes significant exploration and the construction of two wash-plants. Following completion of the Acquisition, we plan to commence a significant bulk sampling project within these licenses in the next few months with the mid-term objective of creating another world class, cash generative ruby mine to complement our iconic Coscuez emerald mine in Colombia.”
