06:44:04 EDT Tue 29 Sep 2020
Fura Gems Inc
Symbol FURA
Shares Issued 135,161,147
Close 2019-08-14 C$ 0.19
Recent Sedar Documents

Fura Gems increases financing to $33.33-million

2019-08-15 09:19 ET - News Release

Mr. Dev Shetty reports


Fura Gems Inc. has provided the results of its annual general and special meeting of shareholders (the AGM) held on Friday, Aug. 2, 2019, in Toronto, Canada.

AGM results

The nominees listed in the management information circular, which was mailed to Fura's shareholders of record as of July 2, 2019, were elected to the board of directors of the company to hold office until the next annual meeting of shareholders or until their successors are duly appointed or elected.

Nominee        Percentage of votes for   Percentage of votes withheld 

Dev Shetty                     99.879%                         0.121%                       
Gaurav Gupta                   99.966%                         0.034%                       
Stan Bharti                    97.809%                         2.191%                       
Michael Kuan                   99.962%                         0.038%                       

A total of 57,005,463 shares were voted at the AGM, representing approximately 42 per cent of the issued and outstanding shares.

In addition, Fura shareholders approved all of the other resolutions detailed in the circular and put forward at the AGM, namely:

  • Reappointing UHY McGovern Hurley LLP, chartered accountants, as auditor of the company for the ensuing year;
  • Approving the company's stock option plan for the ensuing year.

Fura shareholders also approved the two special resolutions detailed in the circular and put forward at the AGM, namely:

  • Approving the creation of new control persons (as that term is defined under TSX Venture Exchange policy 1.1 -- Interpretation), as more particularly described in the circular;
  • Approving Lord of Seven Hills Holdings FZE's participation in the upsized offering (defined below) as a related party transaction pursuant to Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions, as more particularly described in the circular.

The circular is available under Fura's profile on SEDAR.

Dev Shetty, president and chief executive officer of Fura, commented:

"We are pleased that our shareholders approved Lord of Seven Hills Holdings FZE's participation in the ongoing upsized offering. We expect that, upon completion, the capital raise will help Fura accelerate our operations in Colombia and Mozambique and move the company along the path to revenue generating mining operations."

Michael Kuan of Lord of Seven Hills Holdings FZE commented:

"We are excited about our investment in Fura, which we believe has a world-class management team with a tremendous track record in the coloured gemstone industry. We see the coloured gemstone mining sector as highly fragmented, with approximately 90 per cent of the sector still unorganized. We therefore look forward to supporting Fura's management team and its strategy to consolidate the sector and transform Fura into one of the industry's first consistent suppliers of emeralds, rubies and sapphires."

Private placement upsize

As a result of increased investor demand, the company is increasing its previously announced private placement of Fura common shares from total gross proceeds of $30,375,000 to $33,337,500.

The net proceeds of the upsized offering are expected to be used for: (i) the advancement of Fura's Coscuez emerald project in Colombia and ruby assets in Mozambique, (ii) the closing of the company's continuing acquisition of a 100-per-cent interest in ruby prospecting licence No. 5572L in the Montepuez district of Cabo Delgado province in Mozambique previously announced on July 26, 2018, (iii) the closing of the merger of ruby asset transaction first announced on July 16, 2018, respecting the company's acquisition of (A) 75 per cent of the issued shares of Montepuez Minerals Pty. Ltd., which owns a 70-per-cent interest in mining licence 5030L, and an 80-per-cent interest in mining concession 8921C; and (B) a right to earn a 65-per-cent interest in mining concession 8955C under a joint venture agreement, and (iv) general corporate purposes.

The closing of the upsized offering may occur in one or more tranches, with the closing of the first tranche expected to occur on or about Aug. 16, 2019, and remains subject to receipt of all necessary regulatory approvals, including the approval of the TSX-V. Fura is not paying any finder's fees in connection with the upsized offering. The shares issued pursuant to the upsized offering will be subject to a regulatory hold period of four months and one day.

Further to the company's press releases dated Sept. 17, 2018, and Nov. 29, 2018, the company confirms that $4,752,124 (Canadian) of the net proceeds raised from the previously announced private placement that closed in September, 2018, was not used to complete the closing of the merger of ruby assets agreement dated July 14, 2018, as amended, but was used for general corporate purposes and developing its current mining assets.

About Fura Gems Inc.

Fura Gems is a gemstone mining and marketing company which is engaged in the mining, exploration and acquisition of gemstone licences. Fura's headquarters are located in Toronto, Canada, and its administrative headquarters is located in the Gold Tower, Dubai.

Fura is engaged in the exploration of resource properties in Colombia and owns a 76-per-cent interest in the Coscuez emerald mine in Boyaca, Colombia. Fura is involved in the exploration and mining of rubies in Mozambique through its 80-per-cent effective interest in the four ruby licences (4392L, 3868L, 3869L and 6811L).

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