Coloured gemstone mining and marketing company Fura Gems received formal approval from the Ministry of Mineral Resources and Energy of Mozambique (MIREM) for the acquisition of a ruby licence, the company said in a release last month.

It noted that it had completed the previously announced acquisition of Mozambican mining company SRL Mining Limitada and would take full interests in it, holding 100% of both the ruby mining concession 8955c and the ruby exploration licence 7414L, as well as a 20% interest in mining company Ibra Moz SA – which held the ruby mining concession 8921C.

In line with a share purchase agreement announced on February 4, GemRock – a wholly owned subsidiary of Fura Gems – paid an aggregate price of $2.1-million for the Mozambique licences.

GemRock is a mining subsidiary of fine jewellery brand Diacolor International DMCC and its portfolio consists of ruby mining licences in Mozambique and emerald mining licenses in Colombia and Ethiopia.

The acquisition is an ‘arm’s length’ transaction to comply with TSX Venture Exchange policies, and Fura is not paying any finder’s fees in connection with the acquisition.

Going forward, Fura expects to get formal approval from the MIREM to acquire the remaining interest in Ibra Moz SA and, through this, the ruby mining concession 8921C.

This expansion of its interest in Mozambique is set to add another 95.15 km2 to Fura’s land package in Mozambique’s Montepuez district.

Meanwhile, Fura is currently in the process of completing the purchase and sale of interests in three additional ruby prospecting licences in Mozambique. First; a 70% stake in ruby mining licence 5030L through the acquisition of 70% of the issued and outstanding shares of Rubies Resources SA.

Second, an 80% interest in ruby mining concession 8921C through the acquisition of 80% of the issued and outstanding shares of Ibra Moz SA and, third, the right to earn a 65% interest in mining concession 8955C under a joint venture agreement collectively termed the New Energy Assets.

Fura has been slowly extending its reach in Mozambique, with Fura president and CEO Dev Shetty commenting, in a statement released in February: “We are pleased to further consolidate our position in the main ruby belt of the Montepuez district of Mozambique. Completion of the merger of ruby assets agreement with New Energy Minerals announced in November 2018, combined with Fura’s acquisition of ruby mining licence 5572L announced on October 17, 2019 – and now Fura’s – anticipated acquisition of the interests in SRL Mining, Limitada and Ibra Moz SA is expected to give Fura the ability to explore for secondary alluvial and a primary deposit of rubies in the region.”

At the time he added that, “in the last three years, Fura’s portfolio of assets has grown significantly. We now have three important silos of colour-gemstone properties in our portfolio, emeralds from Colombia – the world’s largest emerald supplier in value – rubies from Mozambique, the world’s largest ruby supplier by volume and sapphires from our sapphire project in Australia.”

He stressed that Fura’s assets and its “hugely experienced team”, had left the company in a position of strength, one that would enable it to become a “leading colour gemstone company”.

Fura Gems, headquartered in Toronto, Canada, is engaged in the mining, exploration, and acquisition of gemstone licences, owning a 76% interest in the Coscuez emerald mine in Boyacá, Colombia, as well as 100% interest in two mining permits and three mining licences in Australia. In Mozambique it has 80% effective interest in four ruby licences as well as a 100% interest in ruby licence 5572L. Loan Agreement Fura in March announced the issuance of a grid promissory note (the Note) to a private company, pursuant to which the Lender has agreed to immediately lend Fura $21-million. An additional $7.6-million remains available for drawdown by the Fura at a later date, subject to the terms of the Note. The funds advanced under the Note are initially unsecured, will bear interest at a rate of 10% per annum and have a maturity date of August 31, 2021. The initial advance of $21-million is inclusive of the $5,543,699 for the previous loan advanced to Fura, described in its press release dated February 10, 2020. The principal amount of the loan as well as accrued interest will be payable on the maturity date. The proceeds of the loan are expected to be used for the advancement of its projects, as well as general corporate purposes, including paying down debts and payment towards acquiring ruby mining concession 8955C, ruby mining licence 7414L and a 20% interest in ruby mining concession 8921C.