Gemfields (AIM: GEM) said that Rox Limited has purchased 4.7 million of its shares to boost its total interest to 205.3 million shares representing 63.4% of the company’s issued capital.
The purchase price of 5 pence per share equals yesterday’s closing price.
The company has recently held a successful auction to raise US$7.2 million, taking the total revenues from 3 auctions in 9 months to US$18.7 million. The company reported a cash balance of US$7 million as at March 31, exclusive of gemstone inventory internally estimated to be worth more than US$10 million.
Production from Gemfields’ 75% owned Kagem mine in Zambia produced a total of 3.5 million carats of emerald and beryls after 12,500 tonnes of ore were mined in the quarter to 31 March. Production for the nine months to 31 March amounted to 11.3 million carats with 42,000 tonnes mined with a grade of 269 cpt (carats per tonne).
The company’s debt stands at US$3.4, which is repayable by December this year.