Gemfields acquires 75 per cent stake in Mozambican ruby mine

AIM-listed mining company Gemfields gas has snapped up a 75 per cent stake in a Mozambican ruby project.

AIM-listed mining company Gemfields gas has snapped up a 75 per cent stake in a Mozambican ruby project.

The company, which has a market capitalisation of £99.59m, entered into a conditional agreement to acquire a controlling interest in an additional ruby deposit located adjacent to the company's Montuepez ruby mine in the Cabo Delgade province of Mozambique.

The project, initially targeting one specific exploration licence, includes the option to acquire a second licence, both of which are currently owned by EME Investimentos S.A. and cover approximately 18,400 and 14,900 hectares respectively.

The total consideration payable is $3.5m and is to be paid in cash in two instalments.

Ian Harebottle, Chief Executive Officer of Gemfields, commented: "The conditional agreement announced today has the potential to significantly expand our footprint in what we believe to be an exciting large-scale ruby province."

"We are particularly pleased to be able to provide this update to our shareholders given the considerable progress we have already made. The early indicators from the ongoing bulk sampling at our adjacent Montepuez project are encouraging."

He added: "We have received positive support from both the regional and national Mozambican authorities for our activities to date and I have little doubt that this, our second project within Mozambique, is unlikely to be the last and that the continued expansion and development of our Mozambican operations will prove to be a key element of Gemfields' continuing growth strategy."

MF

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
6 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Share tips of the week – 3 February 2023
Investments

Share tips of the week – 3 February 2023

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
6 Feb 2023