Gemfields is set to acquire a controlling interest in a ruby deposit adjacent to its Montepuez mine, in Mozambique.
The gemstone miner said in a statement that the acquisition included 75 percent of one exploration license with a year option to acquire 75 percent of a second license for $1.75 million each.
Subject to government approval, the mining titles would be converted to mining concessions issued in the name of the new company.
Gemfields chief executive Ian Harebottle said that the agreement made it possible for his company to expand its footprint in what would be “an exciting large-scale ruby province”.
“The early indicators from the ongoing bulk sampling at our adjacent Montepuez project are encouraging,” he said.
“We have received positive support from both the regional and national Mozambican authorities for our activities to date and I have little doubt that this, our second project within Mozambique, is unlikely to be the last and that the continued expansion and development of our Mozambican operations will prove to be a key element of Gemfields' continuing growth strategy."
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
