British company Gemfields has issued just over 1 million shares following its acquisition of a ruby mining license in Montepuez, in the Mozambican province of Cabo Delgado, the company said in a statement issued Friday.
The company bought a 75 percent stake in the mining license in February for US$2.5 million, and the 1 million new shares floated on the stock market Friday raise the company’s shares to 325 million and give it a market capitalisation of 120 million pounds sterling.
Gemfields was focused on emerald mining in Kagem, Zambia, but the acquisition of the new mining license in Mozambique, for a 25-year period, has expanded the company’s portfolio of precious stones.
The Montepuez project includes prospecting and exploration rights of an area of around 34,000 hectares, which is considered to be one of the world’s richest ruby deposits, and the first gems are expected to be mined this year. (macauhub)