Another acquisition by Fura. Cash plas shres
"FURA TO ACQUIRE ADDITIONAL RUBY LICENCE IN MOZAMBIQUE
Fura Gems Inc. has entered into a share purchase agreement pursuant to which the company will acquire a 100-per-cent interest in ruby prospecting licence No. 5572L in the Montepuez district of Cabo Delgado province in Mozambique.
Dev Shetty, Fura's President and CEO commented: "We are pleased to further consolidate our position in the main ruby belt of the Montepuez district of Mozambique. The merger of assets with Mustang and Regius announced last week, combined with the acquisition of this licence, now gives Fura further access to both the secondary alluvial and the primary deposit of rubies in the region.
In the last 18 months, Fura's business has grown tremendously. We now have two important silos of colour-gemstones in our portfolio, emeralds from Colombia, the world's largest emerald supplier in value and rubies from Mozambique, the world's largest ruby supplier by volume, and where we now have the largest land package in the country. With these assets and our hugely experienced team, we believe we are in a great position to be able to create a world class colour gemstone company. I would like to thank my team in Fura for their passion and dedication, the local partners and the government of Colombia and Mozambique for their continued support."
Share Purchase Agreement
Fura and a wholly owned subsidiary of the Company have entered into a share purchase agreement dated July 24, 2018 with Azores Overseas Inc. ("Azores"). Pursuant to the Agreement, Fura will acquire a 100% interest in the Licence through its acquisition of 100% of the quotas of Mozambican Ruby Ltda. ("MRL").
The aggregate purchase price pursuant to the Agreement is as follows:
USD$381,000 in cash to be paid to Azores on the closing of the Acquisition;
2,500,000 common shares in the capital of Fura ("Fura Shares") to be issued to Azores on the closing of the Acquisition.
In addition to above Fura will also pay USD$993,900 to discharge certain of MRL's liabilities on the closing of the Acquisition. The Fura Shares will be subject to a regulatory hold period of four months and one day from the closing of the Acquisition. The Acquisition is expected to be completed by September 30, 2018.
The Acquisition is an arm's length transaction for the purposes of the policies of the TSX Venture Exchange ("TSXV") and is subject to the approval of the TSXV. Fura is not paying any finder's fees in connection with the Acquisition. The closing of the Acquisition is subject to the satisfaction of customary conditions precedent, including, inter alia, receipt of ministry authorizations, completion of the acquisition of the Licence by MRL, Fura being satisfied with the results of its due diligence, approval of the TSXV and the provision of applicable legal opinions concerning the title to the Licence."
