Fura Gems, of Canada, will become the company with the largest licensed area – 1,104 square kilometres – for ruby exploration in Mozambique, after the conclusion of a merger of mining assets with Australian companies Mustang Resources Ltd and Regius Resources Group Ltd, the mining company said in a statement on Monday.
Under the agreement, the Canadian company acquires nine mining licenses held by those two companies for US$15 million of which US$3 million in cash and about US$12.7 million in the company’s own shares.
Dev Shetty, chief executive of Fura Gems, said in the statement that the nine new licenses, along with those already held, give the company the largest ruby mining area in Mozambique, in an area where there are some of the highest quality rubies in the country.
Preliminary work has already been carried out by Mustang and Regius through their subsidiaries in Mozambique, Shetty said, adding that once this deal is completed “we intend to start a sample collection process in the coming months so that we can add a world-class ruby mine in Mozambique to our emerald mine in Colombia.”
Fura Gems intends to invest up to US$25 million over a three-year period in a programme of drilling and sampling, as well as the reconfiguration of the facilities for washing collected gravel, among other activities.
The deal is expected to be completed by 30 November, and Fura Gems expects the sampling process will allow the auction process of the rubies extracted to begin in the third quarter of 2019. (macauhub)