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Gemstone mining and marketing company Fura Gems entered into a share purchase agreement pursuant to which it will acquire a 100% interest in ruby prospecting licence No. 5572L in the Montepuez District of Cabo Delgado province in Mozambique.

Mozambique – The merger of assets with Mustang Resources and Regius Resources announced earlier this month, combined with the acquisition of this licence, now gives Fura Gems further access to both the secondary alluvial and the primary deposit of rubies in the region.

“In the last 18 months, Fura Gems’ business has grown tremendously and are pleased to further consolidate our position in the main ruby belt of the Montepuez district of Mozambique,” says Fura Gems president and CEO Dev Shetty.

“We now have two important silos of colour-gemstones in our portfolio, emeralds from Colombia, the world’s largest emerald supplier in value and rubies from Mozambique, the world’s largest ruby supplier by volume, and where we now have the largest land package in the country.

“With these assets and our hugely experienced team, we believe we are in a great position to be able to create a world class colour gemstone company,” Shetty adds.

Share purchase agreement

Fura Gems and a wholly-owned subsidiary of the company entered into a share purchase agreement on 24 July 2018 with Azores Overseas.

Pursuant to the agreement, Fura Gems will acquire a 100% interest in the licence through its acquisition of 100% of the quotas of Mozambican Ruby Ltda. (MRL).

The aggregate purchase price pursuant to the agreement is as follows:

  • US$381 000 in cash to be paid to Azores Overseas on the closing of the acquisition; and
  • 2.5 million common shares in the capital of Fura Gems to be issued to Azores Overseas on the closing of the acquisition.

In addition to above Fura Gems will also pay US$993.900 to discharge certain of MRL’s liabilities on the closing of the acquisition.

The Fura shares will be subject to a regulatory hold period of four months and one day from the closing of the acquisition.

The acquisition is expected to be completed by 30 September 2018.