Fura Gems Inc (CVE:FURA) (OTCMKTS:FUGMF) announced a milestone in its evolution, namely the completion of its previously announced acquisition of an Australian sapphire mining project.
It means the Toronto-based group is now the only public gemstone mining and marketing company in the world to hold emerald, ruby and sapphire mining assets (all three coloured gemstones).
In June last year, Fura revealed it had struck an option deal with Richland Resources Ltd (LON:RLD) to buy the Capricorn project in Queensland.
READ: Fura Gems to enter Australian sapphire mining industry with Capricorn project deal
Capricorn comprises two mining permits (EPM 25973 and EPM 25978) and three mining licences (ML 70419, ML 70447 and ML 70451) and Fura has bought 100% of all these licences, which comprises the project.
The deal saw the vendor transfer all of the issued shares of Richland’s wholly-owned subsidiary Richland Corporate Ltd and assigned all of the vendor’s (Richland) loans to Richland Corporate to Fura. Fura paid US$1.25 million in cash.
It had previously paid Richland C$25,000 as an option fee payment. Fura did not pay any finder’s fees in connection with the acquisition.
"We are very pleased to complete the acquisition, which results in Fura becoming the only public gemstone mining and marketing company in the world to hold emerald, ruby and sapphire mining assets (being all three coloured gemstones)," said Dev Shetty, the president and CEO of Fura.
Mozambique plan in train
Notably, Fura Gems is also currently in the process of completing the purchase and sale of interests in three additional ruby prospecting licences/concessions in Mozambique.
Namely, it is buying 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.
Fura also plans to buy the right to earn a 65% interest in mining concession 8955C under a joint venture agreement (collectively, the 'New Energy Assets').
New Energy Minerals Ltd (previously known as Mustang Resources) owns the ruby licenses.
Shares in Toronto advanced over 9% to C$0.18.
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Contact the author at giles@proactiveinvestors.com