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Fura Gems to fetch Mustang ruby assets for less under loan agreement

Fura will now pay A$2.8mln for the assets, instead of the A$9.9mln previously agreed, in exchange for providing an A$2.8mln loan to New Energy
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The deal represents a “major win-win” for Fura and New Energy shareholders

Fura Gems Inc (CVE:FURA) told investors on Thursday that the purchase price of its proposed acquisition of Mustang ruby assets in Mozambique from New Energy Minerals has been reduced as part of a loan agreement.

Fura will now pay A$2.8mln for the assets, instead of the A$9.9mln previously agreed, in exchange for providing an A$2.8mln loan to New Energy..

READ: Fura Gems Inc well on the way to building strong position in emerald and ruby mining

The deadline for satisfying the conditions for closing the deal on the assets has been extended to February 28.

Dev Shetty, chief executive and president of Fura, said the deal represents a “major win-win” for Fura and New Energy shareholders.

"We are very pleased to assist New Energy Minerals, one of our counterparties in the several Mozambican ruby acquisition projects that are currently underway, via an A$2.8mln.”

Fura also announced that it has agreed to buy additional ruby wash plant capacity from New Energy for A$489,439 to support its mining licences.

The company also confirmed that it expects to use the net proceeds of its US$10mln share placement to complete the acquisition of ruby mining licence 5572L in Mozambique and for general corporate purposes. 

If for whatever reason it does not complete the transaction, the net proceeds of the financing will be used for general corporate purposes, for developing current mining assets and for future acquisitions.

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