British company Gemfields concludes acquisition of majority-stake in ruby deposit in Mozambique

29 February 2012

London, United Kingdom, 29 Feb – British company Gemfields has concluded the process of acquisition of a controlling stake in a ruby deposit located in the Montepuez district of Mozambique’s Cabo Delgado province, the company said in a statement filed with the market regulator.

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 been satisfactory and that the Mozambican government had issued the licenses on 23 February.

The ruby mining project includes five mining licenses 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 percent of the partnership and Mwiriti Limitada will keep the remaining 25 percent, and the new company, Montepuez Ruby Mining Limitada, will hold the mining licenses, which are valid for 25 years. (macauhub)