Fura Gems nixes acquisition of Mozambique ruby licenses from Regius Resources

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Fura Gems nixes acquisition of Mozambique ruby licenses from Regius Resources

4:15 CAT | 12 Feb 2019

Fura Gems Inc. said Feb. 8 that an agreement with Regius Resources Group Ltd. for the acquisition of the latter’s ruby licenses/concessions in Mozambique was terminated.

In July 2018, Fura agreed with New Energy Minerals Ltd., formerly Mustang Resources Ltd., and Regius to acquire nine ruby assets.

Meanwhile, Fura is moving forward with an amended deal with New Energy Minerals to acquire a 75% stake in Montepuez Minerals Pty. Ltd., which owns a 70% interest in mining license 5030L and an 80% interest in mining concession 8921C, as well as a right to earn a 65% interest in mining concession 8955C under a joint venture agreement.

Under the revised agreement, the consideration to New Energy Minerals was reduced to A$2.8 million from A$10 million by way of an A$2.8 million loan agreement.

Fura also agreed to purchase from New Energy Minerals an additional ruby wash plant capacity to be deployed at its licenses.

Source: S&P Global Platts