AMN - MOZAMBIQUE: Fura Gems to buy ruby assets

Fura Gems has entered into an agreement to acquire Cobadale Ltd, which has majority interests in four ruby licences in Mozambique. Cobadale is also seeking an additional licence in the Montepuez district of the country's Cabo Delgado province.

Upon closing of the transaction, Fura will hold an 80% effective interest in the assets with the remaining 20% interest, non-dilutive and free carry, being held by the respective local partners. The assets cover approximately 394.24sqkm.

Fura will purchase from the shareholders of Cobadale all of the issued and outstanding shares of Cobadale in consideration for Fura paying to the Vendors US$800,000 in cash and issuing 15 million common shares of Fura.

The initial finding from artisanal pits shows the occurrence of both primary and secondary mineralisation consisting of both higher and lower quality rubies.

Mozambican rubies have been historically found in the north-eastern part of the country, in the Montepuez district. The nearest airport is in Pemba which is also the capital of Cabo Delgado province. The area where rubies have been historically mined is a 200km drive from Pemba to Montepuez.

According to the Gemological Institute of America (GIA), Mozambican rubies account for approximately 50% of the world's ruby production. The ruby deposits in Mozambique are also considered to be the largest gemstone deposits found in recent decades.

Fura, which was formerly known as Fura Emeralds, has appointed Debananda Tripathy as project manager for its ruby operations in Mozambique. He has more than 20 years of experience in exploration geology, with more than eight years on the African continent, mainly in Mozambique.

He will be based in Montepuez and will be responsible for the overall running of the Mozambique operations including exploration, bulk sampling and bringing the project to the mining phase. He is supported by a team consisting of a mining engineer, geologists and other support staff.

Fura's president and CEO Dev Shetty said, "We are delighted to announce Fura's expansion into the ruby sector in Mozambique. Having previously had the opportunity and experience of exploring and developing potentially the world's single largest ruby deposit in the Montepuez District of Mozambique, I am excited about the potential impact that securing assets in the same region will have on the company."

www.furaemeralds.ca