Mr. Dev Shetty reports
FURA CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT
Fura Gems Inc. has closed its first tranche of a previously announced non-brokered private placement financing of common shares for gross proceeds of $26,688,602. For more information on the offering, please see Fura's news releases dated May 15, 2019, June 27, 2019, and Aug. 15, 2019, and the company's management information circular dated July 2, 2019, each of which is available under Fura's profile on SEDAR.
Pursuant to the first tranche, Fura issued 106,754,408 common shares at a price of 25 cents per share. The shares were issued at a premium of 47 per cent to the closing price of the shares on the TSX Venture Exchange on Oct. 9, 2019.
The net proceeds of the first tranche 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, and Aug. 22, 2019; and (iii) general corporate purposes.
The shares issued in connection with the first tranche are subject to a statutory four-month hold period, which expires on Feb. 11, 2020, and the closing of the first tranche is subject to receipt of final approval of the exchange. No finders' fees were paid in connection with the offering, including the first tranche.
Certain directors, officers, employees and consultants of the company have subscribed for shares pursuant to the first tranche. The insider participation will be considered to be a related party transaction as defined under Multilateral Instrument 61-101. The insider participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101. In addition, a related party has also subscribed for shares pursuant to the first tranche, as described in the circular. Minority shareholder approval for the related party participation was previously obtained by Fura at its annual and special meeting of shareholders held on Aug. 2, 2019. The related party participation is exempt from the formal valuation requirement of MI 61-101. Please refer to the circular for more information.
About Fura Gems Inc.
Fura is a gemstone mining and marketing company that is engaged in the mining, exploration and acquisition of gemstone licences. Fura's headquarters are located in Toronto, Canada, and its administrative headquarters are located in the Gold Tower, Dubai.
Fura is engaged in the exploration of resource properties in Colombia and owns a 76-per-cent interest 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 four ruby licences (4392L, 3868L, 3869L and 6811L).
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