The company would offer $1.75m for the deposit, which lies adjacent to Gemfields’s Montepuez mine in the Cabo Delgado province.
Under the agreement terms, the company will initially acquire 75% of one exploration license with an option to acquire a similar percentage in a second license within one year.
The licenses are spread across 18,400ha and 14,900ha respectively and serve to expand the gemstone company’s Mozambique operations.
Pursuant to the deal, Gemfields would own 75% stake in a new company, with EME holding the remaining 25%.
Gemfields CEO Ian Harebottle stated that this conditional agreement can considerably increase the company’s ruby footprint.
"The early indicators from the ongoing bulk sampling at our adjacent Montepuez project are encouraging.
"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," Harebottle said.
