London, England — 13 December 2012 – British gemstone miner Gemfields has reached a provisional agreement to buy a majority stake in a ruby mine next to its own mine in Montepuez, in the Cabo Delgado province of Mozambique.
Macauhub News Agency reports that in terms of the agreement a new company will be set up in which AIM-listed Gemfields will own 75% after payment of US$1.75 million. The seller, EME Investimentos, will own the remaining 25%.
The future company will have an exploration licence, with an option to buy 75% of a second licence. The two licences will cover areas of 18,400 and 14,900 hectares respectively.
Gemfields will have to pay the agreed amount in two instalments, the first within 14 days of signing the final contract, and an additional payment in the same amount if the company decides to exercise its option to buy the second mining licence.
Gemfields chairman Ian Harebottle said that the initial results on samples collected at the project next to the Montepuez mine were, “very encouraging,” and added that he was sure that the company would continue to invest and expand in Mozambique.
Rubies are the second-hardest gemstones after diamonds and are used essentially to manufacture jewellery. It is thought that Montepuez may have the world’s largest ruby deposit.
Source: Macauhub News Agency. For more information, click here.