14:48:25 EDT Wed 30 Sep 2020
Fura Gems Inc
Symbol FURA
Shares Issued 241,915,555
Close 2019-10-16 C$ 0.175
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Fura Gems completes buy of Mozambique ruby licence

2019-10-17 07:56 ET - News Release

Mr. Dev Shetty reports

FURA COMPLETES ACQUISITION OF RUBY PROSPECTING LICENCE 5572L IN MOZAMBIQUE

Fura Gems Inc. has successfully completed the company's previously announced acquisition of a 100-per-cent interest in ruby prospecting licence No. 5572L in the Montepuez district of Cabo Delgado province in Mozambique. Please see Fura's press releases dated July 26, 2018, and Aug. 22, 2019, for further details.

Dev Shetty, president and chief executive officer of Fura, commented: "We are pleased to announce the successful acquisition of the licence, which covers an area located in the main ruby producing belt of the Montepuez district of Mozambique. We have already completed the first phase of production drilling and have begun commissioning the wash plant, which we expect to be completed by the end of 2019. We also expect to commence bulk sampling at the 100-square-kilometre licence area before the end of 2019, while continuing to explore further."

Pursuant to the share purchase agreement dated July 24, 2018, as amended, in exchange for Azores Overseas Inc. transferring 100 per cent of the quotas of Mozambican Ruby Ltda. (MRL) (which holds a 100-per-cent interest in the licence) to Fura's wholly owned subsidiary, Fura issued 1,364,338 common shares of Fura and paid $381,000 (U.S.) in cash to the vendor. In addition, Fura paid $993,900 (U.S.) to discharge certain liabilities of MRL.

The acquisition was an arm's-length transaction for the purposes of the policies of the TSX Venture Exchange. Fura did not pay any finders' fees in connection with the acquisition. The Fura shares are subject to a regulatory hold period of four months and one day, expiring on Feb. 18, 2020.

Fura is currently in the process of completing the purchase and sale of interests in three additional ruby prospecting licences/concessions in Mozambique as follows: (i) 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 (ii) a right to earn a 65-per-cent interest in mining concession 8955C under a joint venture agreement. Please see the company's press release dated Nov. 29, 2018, for further details regarding the terms of this proposed acquisition, which remains subject to TSX Venture Exchange approval.

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 are located in the Gold Tower, Dubai.

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