Finally a completion of an acquisition. More to come FURA COMPLETES ACQUISITION OF RUBY PROSPECTING LICENCE 5572L IN MOZAMBIQUE
Fura Gems Inc. has successfully completed the company's previously announced acquisition of a 100-per-cent interest in ruby prospecting licence No. 5572L in the Montepuez district of Cabo Delgado province in Mozambique. Please see Fura's press releases dated July 26, 2018 and August 22, 2019 for further details.
Dev Shetty, President & CEO of Fura, commented: "We are pleased to announce the successful acquisition of the Licence, which covers an area located in the main ruby producing belt of the Montepuez district of Mozambique. We have already completed the first phase of production drilling and have begun commissioning the wash-plant, which we expect to be completed by the end of 2019. We also expect to commence bulk sampling at the 100 sq.km Licence area before the end of 2019, while continuing to explore further."
Pursuant to the share purchase agreement dated July 24, 2018, as amended, in exchange for Azores Overseas Inc. (the "Vendor") transferring 100% of the quotas of Mozambican Ruby Ltda. ("MRL") (which holds a 100% interest in the Licence) to Fura's wholly-owned subsidiary, Fura issued 1,364,338 common shares of Fura (the "Fura Shares") and paid US$381,000 in cash to the Vendor. In addition, Fura paid US$993,900 to discharge certain liabilities of MRL.
The Acquisition was an arm's length transaction for the purposes of the policies of the TSX Venture Exchange ("TSXV"). Fura did not pay any finder's fees in connection with the Acquisition. The Fura Shares are subject to a regulatory hold period of four months and one day, expiring on February 18, 2020.
Fura is currently in the process of completing the purchase and sale of interests in three additional ruby prospecting licences/concessions in Mozambique as follows: (i) 75% of the issued shares of Montepuez Minerals Pty Ltd., which owns a 70% interest in mining licence 5030L and an 80% interest in mining concession 8921C; and (ii) a right to earn a 65% interest in mining concession 8955C under a joint venture agreement (collectively, the "New Energy Assets"). Please see the Company's press release dated November 29, 2018 for further details regarding the terms of this proposed acquisition, which remains subject to TSXV approval.