Gemfields raises funds to expand ruby ​​mine in Mozambique

5 July 2016

British company Gemfields has secured four credit facilities in the amount of US$65 million, of which 45 million will be invested in the expansion of the company’s ruby ​​mine in Montepuez, northern Mozambique, Gemfields said in a statement issued Monday.
The credit facilities for Mozambique include an overdraft of US$15 million granted by Barclays Bank Mozambique, at an interest rate of 4 percent, and another overdraft in the same amount granted by Banco Comercial e de Investimentos, at a rate of 3.75 percent.

The remaining US$15 million was granted under a leasing contract with Banco Comercial e de Investimentos, valid for 18 months and repayments made over a period of 48 months, paying an interest rate of 3.75 percent.

Gemfields also secured a credit facility of US$20 million from Macquarie Bank to be used in place of a loan taken on in April 2015 in the amount of US$25 million.

The funds will allow Montepuez Ruby Mining, a partnership in which Gemfields controls 75 percent, to expand annual production to 20 million carats of rubies in the rough within the next three years. (macauhub/MZ)