Fura will pay US $10.2 million for the majority shareholding of Esmeracol

Canada’s Fura Gems, listed on the Toronto Stock Exchange, will own 76% of the Coscuez mine in the Muzo formation in Boyacá.

Fura Gems will pay Emporium in five installments for the majority stake in Coscuez , which will be distributed at US $2.5 million upon closing of the transaction; US $200,000 in common share issuance at an issue price equal to the 45-day VWAP of Fura common shares for the period ending on the business day prior to the closing of the transaction; US $2 million upon completion of the first year of the transaction; US $2.5 million on the second anniversary and the remaining US $3 million on the third year since the transaction.

For its part, Emporium will retain 21.71% of Esmeracol and the remaining 2.29% will remain in the hands of the minority shareholders of the project with the mining license on a total land of 46 hectares, located in the well-known Muzo formation.

Additionally, if Esmeracol’s net earnings exceed US $17 million during a fiscal year, Fura will have to pay an additional US $3 million to Emporium, assuming that its expenses do not exceed US $5 million in said period.

Boyaca emeralds are considered the best quality in the world.

Fura Gems revealed that it hopes to work together with national and regional authorities to obtain authorizations to, in the short term, improve the mine’s infrastructure with works such as the construction of a new ramp system, which will be complemented by a horizontal tunnel to improve access to the site. All of this, in turn, will modernize the emerald extraction process at Coscuez and ensure a safer process for workers.

The Canadian hopes that its works, six months after completion, will generate an increase in the production of emeralds.

What is Esmeracol?

It is a company dedicated to the extraction of emeralds that was established on August 10, 1973 at the 10 notary’s office in Bogotá.

It should be noted that the company Emporium HS SAS exercised control over the company according to a document registered on February 28, 2014 at the Bogotá Chamber of Commerce.

According to the company itself, “on October 6, 1977, an operating contract was signed between the Colombian company of Minas, Ecominas, and Esmeracol for the exploitation of emeralds in an area of 220 hectares, located in the special reserve of Coscuez, with a duration of 5 years, extendable for the same time ”.

Additionally, “on December 7, 1981, a new operating contract was signed between Ecominas and Esmeracol, the purpose of which was established — to grant the operator the temporary and exclusive right to explore and exploit, on behalf of the same company, the potentially emerald subsoil of an area of 73 hectares and 3,858 square meters, which is part of the one initially hired and which is located in the special reserve area of Coscuez ”.

Later, the company adds, on July 31, 1985 another contract was signed, in which the term of the contract was modified, which will be ten (10) years from July 1, 1985 to July 30 1995.

What is Fura?

In Colombia, Fura is a commercial company established on January 16, 2015. It is dedicated to the extraction of minerals.

What is Emporium?

The purpose of this company is the purchase, sale and administration of urban and / or rural real estate and the administration and sale of real estate.