Fura Gems Inc (CVE:FURA) (OTCMKTS:FUGMF) is extending the drop-dead date for its acquisition of ruby assets in Mozambique, the group said on Monday.
The Toronto-based company said it gave New Energy Minerals Ltd written notice on March 26 to extend the date from March 31, 2020, to June 30, 2020.
The acquisition gives Fura interests in three ruby licenses in Mozambique.
The transaction will see it gaining a 70% interest in ruby mining license 5030L via a deal to acquire 70% of the shares of Rubies Resources SA. Fura will also obtain an 80% interest in concession 8921C through the acquisition of 80% shares in Ibra Moz SA.
The mining company will also gain the right to earn a 65% interest in concession 8955C by way of a joint venture agreement.
Fura revised its merger agreement with New Energy Minerals in February. Consideration for the acquisition of the New Energy Assets has been pared back from A$2.8 million (C$2.48 million) to a cash payment of A$1.4 million (C$1.23 million).
Fura is no longer required to issue any of its shares as part of the transaction.
An A$2.8 million (C$2.48 million) loan agreement between Fura and New Energy was terminated. Fura will also pay all capital gains taxes levied by the government of Mozambique in connection with the sale of the New Energy Assets.
Fura is at work on mining its emerald, ruby and sapphire assets in Colombia, Mozambique and Australia.
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas