Toronto-based miner Fura Gems is continuing to expand its presence in Mozambique’s ruby industry. The company became the holder of the largest ruby land package in the country after making nine acquisitions in mid-July, and has now added another prospecting licence to its total.
This new operation is based in the Cabo Delgado province’s Montepuez district and was purchased from ruby mining company Azores Overseas. To complete the acquisition, Fura will pay US$381,000 and issue Azores 2.5 million of its common shares, in addition to paying US$993,900 to discharge liabilities.
“We are pleased to further consolidate our position in the main ruby belt of the Montepuez district of Mozambique,” said Dev Shetty, Fura’s CEO. “The merger of assets with Mustang and Regius, combined with the acquisition of this licence, now gives Fura further access to both the secondary alluvial and the primary deposit of rubies in the region.”
To support this acquisition as well as those made previously, Fura also plans to complete a private placement offering of up to 25 million shares at a price of $0.40 per share. The proceeds from this are expected to total $10 million.
Hanman & Partners and Panmure Gordon will serve as financial advisors in the offering, which is expected to close in late August. The acquisition is set to close September 30.
Source: Jewellery Business