Fura Gems Inc (CVE:FURA) (OTCMKTS:FUGMF) revealed it had increased the size of its previously announced private placement due to increased investor demand to around C$33.3 million from C$30.3 million.
The net proceeds are expected to be used to advance the firm's Coscuez emerald project in Colombia and ruby assets in Mozambique, as well as for the closing of its ongoing acquisition of a 100% interest in ruby prospecting licence No. 5572L in the Montepuez District of Cabo Delgado province in Mozambique.
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The funds will also be used for the closing of the merger of ruby assets transaction first announced in 2018 in respect of its acquisition of 75% of the issued shares of Montepuez Minerals Pty Ltd., which owns a 70% interest in mining licence 5030L, and an 80% interest in mining concession 8921C; and a right to earn a 65% interest in mining concession 8955C under a joint venture agreement, and general corporate purposes.
The closing of the upsized offering may occur in one or more tranches, with the closing of the first tranche expected on or around August 16 this year.
The firm also announced the results of its AGM, in which it also approved the investment of Lord of Seven Hills Holdings FZE via its participation in the upsized offering.
"We are pleased that our shareholders approved Lord of Seven Hills Holdings FZE's participation in the ongoing upsized offering," said CEO Dev Shetty. "We expect that, upon completion, the capital raise will help Fura accelerate our operations in Colombia and Mozambique and move the company along the path to revenue-generating mining operations."
Contact Giles Gwinnett at giles@proactiveinvestors.com