Australian company speeds up diamond and ruby mining in Mozambique

27 November 2015

Mustang Resources has raised US$4.1 million to implement diamond, ruby and gaphite mining projects in Mozambique, the company said in a statement recently.

The cash was raised by issuing 25 million ordinary shares, which will allow the Australian company to speed up prospecting for rubies in two blocks recently acquired in the Montepuez region of Cabo Delgado province.

“Mustang now has resources to develop the Montepuez ruby project more quickly,” said Chairman Ian Daymond, adding that a conservative estimate pointed to revenues of US$60 million in a sampling period of 12 to 15 months.

The company is still “fully committed” to the Save river diamond project and launching exploration at the Balama graphite project, the latter also in Cabo Delgado province.

Mustang Resources, listed on the Australian Stock Exchange, raised the amount mentioned from institutional investors, specifically British company Lanstead Investors. (macauhub/MZ)