URA Holdings PLC (LSE:URAH) has agreed to the acquisition of a majority stake in Prasinus Exploration, the owner of the Curlew emerald mine, in the Pilbara Region of Western Australia.
It is seen as a ‘significant addition to URA's portfolio’.
"We are thrilled to add a controlling interest in the Curlew Mine to our mining portfolio,” URA chair Ed Nealon said in a statement.
“This acquisition, and our current working capital needs, are now fully funded by the successful completion of an institutional Placing; and is a further testimony to the quality of URA's emerald projects.
“The acquisition not only solidifies our presence in the emerald mining industry but also aligns with our strategy to invest in high-potential projects with strong growth prospects.”
Alongside the deal, URA also raised £425,000 through equity funding – issuing 26.56 million shares at a premium price of 1.6p each.
The Curlew Mine is an active small-scale open-pit producing emeralds.
The deal includes all current mining equipment and infrastructure on-site including the mine, which has a valid lease until 2044 and spans some 21.02 hectares.
“The Curlew Mine's history, and recent production success, are testaments to its significant potential,” Nealon added.
“The mine has substantial potential to be scaled-up and expanded and, bearing in mind its capacity to produce larger, high-quality stones, it complements our existing emerald mining activities at Gravelotte.
He added: “This strategic acquisition reinforces URA's commitment to expanding its gemstone mining operations and delivering exceptional value to its stakeholders. The Curlew Mine has existing infrastructure, machinery and equipment in place enabling rapid recommencement of mining.
“We look forward to further developing the Curlew Mine and establishing a robust presence in the emerald market.”