London, England — MININGREVIEW.COM — 01 February 2012 – British company Gemfields “’ one of the world’s foremost coloured gemstone producers “’ has concluded the process of acquisition of a controlling stake in a ruby deposit located in the Montepuez district of the Cabo Delgado province, in Mozambique.

Revealing this in a statement published on the Alternative Investment Market (AIM) of the London Stock Exchange (LSE), Gemfields also said that the conditions of the agreement had proved satisfactory and that the Mozambican government had approved and issued the licences last week.

The ruby mining project includes five mining licences that had previously been owned by Mwiriti Limitada, and covers an area of 34,000 hectares. So far mining has been on an almost artisanal scale.

Under the terms of the agreement, Gemfields will own 75% of the partnership, Mwiriti Limitada will keep the remaining 25%, and the new company, Montepuez Ruby Mining Limitada, will hold the mining licences, which are valid for 25 years.