Fura Gems concludes purchase of ruby prospecting license in Mozambique

18 October 2019

Mining group Fura Gems has concluded deal to buy a ruby prospecting license in the Montepuez district of Cabo Delgado province, northern Mozambique, which was initially announced in July 2018, according to a market announcement released in Toronto on Thursday.

Under the agreement reached, Azores Overseas Inc transfers 100% of its stake in Mozambique Ruby Ltd, the company that owns license 5572L, to the Mozambican subsidiary of the Fura Gems group, receiving in return 1.36 million shares of the group and US$381,000 in cash.

The Canadian group will also cover the liabilities that Azores Overseas has in Mozambique in the amount of US$993,900.

In the statement released on Thursday, Fura Gems also reported that it has already completed the first phase of drilling and ordered the washing equipment, a process that should be completed by the end of the current year.

The group also announced in July 2018 that it became the company with the largest license area, of 1,104 square kilometres, for prospecting for rubies in Mozambique following the completion of the merger of mining assets with Australian companies Mustang Resources Ltd and Regius. Resources Group Ltd. (Macauhub)