Fura Gems Inc (CVE:FURA) (OTCMKTS:FUGMF) (FRA:BJ43) told investors it had successfully negotiated a 30-year extension to the Colombian emerald mining licence, which hosts the Coscuez emerald mine in Boyacá.
The gemstone group holds a 76% indirect equity interest in Coscuez S.A. (Coscuez), the firm, which holds 100% of the licence.
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The licence was initially granted to Coscuez on October 10, 1995 and expired on October 9 this year. Fura submitted a proposal to the Colombian mining agency in October 2018 to extend the license and an agreement was struck on October 8 this year.
The licence covers around 46 hectares and includes exclusive rights to explore, construct and mine emerald deposits.
A maiden resource for the Coscuez mine last year showed three million tonnes of inferred resources at 2 carats per tonne for 6 million carats at a conservative value of US$200 per carat.
The new licence extension agreement includes the following terms, including that it is re-categorized from a mid-scale miner to a large-scale miner, allowing the firm to mine more than 100,000 tonnes and that the royalty payable to the government in connection with the license is capped at 1.5% of Coscuez’s revenue.
The social investment amount will also be capped at 1.5% of each year of Coscuez’s gross revenue.
Contact the author at giles@proactiveinvestors.com