Emerald miner and marketing specialist Gemfields (LON:GEM) is to issue just over one million shares in relation to the acquisition of the Montepuez ruby licence in Mozambique earlier this year.
The company completed the acquisition of a 75 per cent interest in the licence in February for a total consideration of US$2.5 million.
It is expected the 1,049,990 shares will start trading on 6 July, bringing the total capital in issue to 325,756,541, giving Gemfields a £120 million market capitalisation.
Gemfields’ core business has been primarily concentrated on emeralds at its Kagem mine in Zambia.
However the addition of the Montepuez licences, which have been granted for a period of 25 years, mean that Gemfields now has a range of coloured gemstone interests such as sapphire and amethyst.
The Montepuez project comprises mining and exploration rights covering approximately 34,000 hectares and is believed to be potentially one of the largest ruby concessions in private hands in the world.
First production at the ruby deposit is expected later this year.
The share price is up 2.4 per cent to 36.9 pence.