Gemfields acquires additional ruby licenses
Further to the announcement made on 7 December 2012, Gemfields plc, (AIM: GEM) is pleased to announce the completion of its acquisition of controlling interests in two additional ruby deposits in the Montepuez district of the Cabo Delgado province in Mozambique (the “Megaruma Licences”).
The conditions of the acquisition agreement have now been satisfied and the licences, valid for an initial period of 25 years, were formally issued by the Mozambican government on 22 September 2014 and 12 November 2014 respectively to a new company, Megaruma Mining Limitada (“Megaruma”), in which Gemfields is a 75% shareholder. The two licences, which do not border on one another, each share a boundary with Gemfields’ existing 75% owned Montepuez ruby deposit and cover approximately 19,000 hectares and 15,000 hectares respectively.
The Megaruma Licences are expected to provide a platform, alongside the Montepuez ruby deposit, for the expansion and development of Gemfields’ Mozambique ruby operations.
The total consideration payable to the vendor, EME Investimentos S.A., relating to the acquisition of the licences is USD 3.5 million, the bulk of which will now be settled by Gemfields. The vendor holds 25% in the new company, Megaruma.
Ian Harebottle, CEO of Gemfields, commented:
“We are delighted to announce the completion of this transaction, which encapsulates our great confidence in future global demand for Mozambican rubies, just as our stellar Singapore auction results did last week, and our belief in the significance of the ruby deposits in this area. We look forward to working with all our stakeholders in Mozambique in creating the world’s preeminent ruby supply source”.