Mozambique Mining: Australia’s Mustang Resources buys stake to explore rubies

Australian mining company Mustang Resources plans to buy an 80 percent stake in another Australian non-listed company, Montepuez Australian Minerals, pursuant to a contract signed and made public Thursday in Perth.

By purchasing the 80 percent stake, Mustang Resources now controls 64 percent, 56 percent and 56 percent in three licenses to mine rubies, which together account for 15,800 hectares in the Montepuez region of Cabo Delgado province, northern Mozambique.

Under the contract, Mustang Resources has committed to make an initial payment of US$1.5 million, with US$150,000 in cash and the remainder in the company’s own shares.

The contract involves an additional payment of US$2 million once 500 carats of rubies have been extracted and another US$2.5 million, of which US$750,000 in cash, after 10,000 carats are extracted.

The extraction of 50,000 carats of rubies will require the company to make a payment of another US$3 million, of which US$2 million in cash.

This transaction depends on a number of conditions, including the completion of an evaluation study and an independent report, shareholder approval and obtaining the necessary capital.

In a statement issued in Perth, Mustang Resources, a company listed on the Sydney Stock Exchange, said the three exploration licenses are located in the same region where British company Gemfields explores one of the most important ruby ​​deposits in the world. (macauhub/MZ)