New funding to boost ruby mining – by Martin Creamer ( – July 4, 2016)

JOHANNESBURG ( – Coloured-gemstone miner and marketer Gemfields announced on Monday that it had finalised four new debt financing facilities totalling $65-million.

Gemfields CFO Janet Boyce said Gemfields now had the necessary funding to increase its rough ruby production to 20-million carats a year and rough emerald production to more than 40-million carats a year in the next three years.

The company outlined that nearly 70% of the new funding was destined for the Montepuez ruby mine in Mozambique. Headed by CEO Ian Harebottle, Gemfields is a London-headquartered Aim-listed multinational natural resources company in which JSE-listed Pallinghurst, headed by Brian Gilbertson, has a key investment.

Kagem, the Gemfields emerald mine in Zambia, already has revolving credit of $30-million from Barclays in Zambia, and the latest financial facilities secured by the company total $45-million in overdraft and leasing arrangements for Montepuez.

The first, a $15-million unsecured overdraft facility with Barclays Bank of Mozambique at an interest rate of three months London Interbank Offered Rate (Libor) plus 4% a year, is guaranteed by way of a corporate guarantee.

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