Fura Gems Secures Largest Ruby Land Package in Mozambique with Strategic Acquisition
In a landmark move set to significantly reshape the global ruby market, Canada-based gemstone miner Fura Gems Inc. has announced a definitive agreement to acquire nine additional ruby licenses in the mineral-rich nation of Mozambique. This pivotal acquisition not only consolidates Fura Gems’ position in the precious gemstone sector but also establishes the company as the unequivocal holder of the largest ruby land package by area in Mozambique, a country renowned for its high-quality ruby deposits.
The strategic transaction, formalized through a “Merger of Assets Agreement,” sees Fura Gems purchasing these highly prospective assets from Mustang Resources Ltd and Regius Resources Group Ltd. The total consideration for this substantial acquisition stands at A$15 million, equivalent to approximately C$14.6 million or US$11.11 million. This investment underscores Fura Gems’ aggressive growth strategy and its commitment to becoming a dominant force in the production of ethically sourced, world-class precious gemstones.
A Visionary Leader on Mozambique’s Ruby Potential
Dev Shetty, President and CEO of Fura Gems, expressed profound satisfaction regarding the merger, highlighting its transformative impact on the company. “I am pleased to announce the merger of these ruby assets with those of our existing licenses in Mozambique, transforming Fura into the largest ruby group by licence area in the country,” Shetty commented. His statement emphasizes the strategic foresight behind this consolidation, which is poised to unlock unparalleled potential within Mozambique’s burgeoning ruby sector.
Shetty further elaborated on the deep-rooted expertise within Fura’s leadership and operational teams, which he believes is crucial for the success of this expanded venture. “Our team has in-depth experience in the Mozambique ruby sector, having previously worked in Mozambique since 2011, where they were instrumental in discovering and developing what is largely considered the world’s largest ruby deposit.” This invaluable institutional knowledge provides Fura Gems with a distinct competitive advantage, promising efficient exploration, responsible mining practices, and ultimately, the successful extraction of exceptional rubies.
Unlocking High-Quality Ruby Potential and Synergistic Operations
The newly combined portfolio of licenses is not merely extensive in size but also remarkable in quality. Shetty continued, asserting that “These combined licenses are believed to be some of the highest-quality ruby licenses available in Mozambique.” This assessment is based on rigorous geological evaluations and prior exploration work conducted by Mustang and Regius, indicating significant potential for substantial ruby discoveries.
A key aspect of this acquisition is the inherent operational synergy and existing infrastructure. Fura Gems is not starting from scratch; the groundwork laid by the previous operators is considerable. “The initial ground work has already been done by Mustang and Regius, which includes significant exploration and the construction of two wash-plants,” Shetty confirmed. This pre-existing infrastructure provides an immediate operational head start, reducing initial capital expenditure and accelerating the timeline to production. Acquiring assets that are debt-free further enhances the financial viability and attractiveness of this deal.
Strategic Milestones and Future Prospects
Following the successful completion of the acquisition, Fura Gems has outlined an ambitious yet clear roadmap for its Mozambique operations. “Following completion of the acquisition, we plan to commence a significant bulk sampling project within these licenses in the next few months with the mid-term objective of creating another world-class, cash-generative ruby mine to complement our iconic Coscuez emerald mine in Colombia,” Shetty articulated. This statement not only highlights the immediate operational plans but also positions the Mozambique ruby project as a crucial pillar in Fura Gems’ broader strategy of building a diversified portfolio of world-class gemstone mines.
The bulk sampling activities, a critical step in assessing the economic viability and grade of the ruby deposits, are slated to commence by the end of 2018. This phase will provide essential data for resource estimation and mine planning. Building on the insights gained from bulk sampling, Fura Gems anticipates initiating auction sales of its Mozambican rubies from the third quarter of 2019. This expedited timeline from acquisition to market showcases the company’s operational efficiency and confidence in the assets’ potential.
A Deep Dive into Mozambique’s Ruby Landscape and Fura’s Expertise
Mozambique has rapidly emerged as a powerhouse in the global ruby market, particularly after the discovery of significant deposits in the Montepuez area. Its rubies are celebrated for their vibrant color and quality, commanding high prices and demand worldwide. Fura Gems’ strategic expansion into this region is a testament to the country’s geological prospectivity and its growing importance in the precious stone supply chain. By securing the largest land package, Fura Gems is positioning itself to be a long-term, stable supplier of these highly coveted gemstones.
The company’s commitment extends beyond mere extraction. The acquisition includes vital infrastructure such as security setups, mine camps, and other related facilities, all crucial for establishing sustainable and secure mining operations. These elements are fundamental to supporting the new operational team, which, according to Fura, will comprise a newly formed group of gemstone experts. These individuals bring invaluable experience, having previously been instrumental in discovering and successfully building what is widely regarded as the world’s largest ruby mine within Mozambique itself. This depth of experience not only streamlines the transition but also significantly de-risks the project, ensuring that best practices in exploration, mining, and beneficiation are rigorously applied.
Impact on the Global Gemstone Market and Fura’s Diversified Portfolio
This major acquisition is expected to have a notable ripple effect across the global gemstone market. By consolidating a significant portion of Mozambique’s ruby resources under one experienced operator, Fura Gems is poised to influence supply dynamics and potentially enhance the market’s stability and predictability for high-quality rubies. The company’s emphasis on creating a “cash-generative” mine aligns with investor expectations for strong financial returns and sustainable growth.
Furthermore, this move strengthens Fura Gems’ overall portfolio. While the Coscuez emerald mine in Colombia remains an iconic asset, the addition of a world-class ruby operation in Mozambique diversifies the company’s revenue streams and reduces reliance on a single gemstone type or geographical region. This strategic diversification is a hallmark of resilient mining companies, positioning Fura Gems for robust growth and long-term success in the dynamic precious gemstone industry.
The acquisition, targeted for completion by November 30, 2018, marks a significant milestone for Fura Gems. It underscores the company’s ambition, strategic vision, and operational capability to execute complex deals that promise substantial returns and solidify its standing as a leader in the global colored gemstone sector. With the largest ruby land package in Mozambique and a highly experienced team at the helm, Fura Gems is well-prepared to unearth the next generation of magnificent rubies, bringing them to market and meeting the ever-growing demand for these timeless treasures.
News Source: jewellerynet.com