Fura to Acquire Australian Mining Company
TORONTO, Aug. 07, 2020 (GLOBE NEWSWIRE) -- Fura Gems Inc. (“Fura” or the “Company”) (TSXV: Fura, OTC: FUGMF and FRA: BJ43) is pleased to announce
that it has entered into a share sale agreement (the “Share Sale Agreement”) through its wholly-owned Australian subsidiary, Capricorn Sapphire
Pty Ltd (the “Capricorn”), with Mosley Mining Pty Ltd (the “Vendor”), pursuant to which the Company will acquire all of the issued and outstanding shares of Great
Northern Mining Pty Ltd (the “Target”), a mining company located in Australia (the “Acquisition”). The assets of the Target consist of 73 mining leases (the
“Tenements”), each located in Australia, as well as certain buildings, plants, fixtures, tools, and other equipment related to the Tenements.
As consideration for the Acquisition, Fura agreed to pay A$2,987,933 (approximately C$2,860,632) to the Vendor, subject to certain adjustments, and less (i) an amount payable to a bank to release a security interest on certain of the Target’s assets, and (ii) an amount equal to any royalties that become payable by the Target in respect of mining activities conducted on the Tenements prior to completion. In accordance with the Share Sale Agreement, on or about the date that the agreement was signed, Fura paid a portion of the consideration (A$293,093 (approximately C$280,465)) as a deposit to be released to the Vendor upon completion of the Acquisition.
The Acquisition is an arm’s length transaction for the purposes of the policies of the TSX Venture Exchange (“TSXV”) and the Company understands that the Acquisition qualifies as an “Exempt Transaction” under TSXV Policy 5.3. Fura is not paying any finder’s fees in connection with the Acquisition. The closing of the Acquisition is subject to the satisfaction of customary conditions precedent; however, the Foreign Investment Review Board of the Australian Government has already indicated that it has no objection to the Acquisition. Closing of the Acquisition is expected to occur in early to mid-August 2020.
For more information about Fura Gems Inc., please contact:
|Fura Gems Inc.|
Dev Shetty – President & Chief Executive
Tel: +971 (0) 4 240 8760
Vice President – Marketing and Sales