Fura Gems Inc (CVE:FURA) (OTCMKTS:FUGMF), a gemstone mining and marketing company with emerald, ruby and sapphire assets in Colombia, Mozambique and Australia, announced Wednesday that it has arranged a long-term loan facility.
In a statement, the Toronto company said the arrangement involves the issuance of a grid promissory note to a private company that will immediately lend it US$21 million.
An additional US$7.6 million remains available for drawdown by Fura Gems at a later date, subject to the terms of the note, for a maximum aggregate principal amount of US$28.6 million.
The proceeds of the loan are expected to be used for the advancement of its Coscuez emerald project in Colombia, its ruby projects in Mozambique and its sapphire projects in Australia.
Also, the proceeds will go toward general corporate purposes, including paying down debts and payment towards acquiring ruby mining concession 8955C, ruby mining licence 7414L and a 20% interest in ruby mining concession 8921C, each in the Montepuez district of Mozambique.
Fura Gems said the funds advanced under the note are initially unsecured, will bear interest at a rate of 10% per annum and have a maturity date of August 31, 2021.
The initial advance is inclusive of US$5,543,699 for that certain loan advanced by the lender to Fura Gems. The principal amount of the loan, as well as accrued interest, will be payable on the maturity date.
Contact the author: email@example.com
Follow him on Twitter @PatrickMGraham