22nd Jul 2019 12:47
(Alliance News) - Fura Gems Inc has exercised an option to buy sapphire and gemstone company Richland Resources Ltd's Capricorn project in Australia, Richland said Monday.
Under amended terms, Fura will pay an option fee of CAD25,000 to Richland, and then CAD125,000 in cash on closing the deal.
It will also allow Richland to draw a further CAD125,000 under an existing loan agreement with another party, with Fura paying the lender's interest costs up to CAD3,000.
Previously, Fura was to pay CAD150,000 as an option payment and then USD185,000 in cash and 4.9 million Fura shares.
The deal will make Richland a cash shell and it will look to secure debt or equity funding to buy a new mining project. Shares were 6.5% lower on Monday at 0.070 pence each.
Related Shares:
RLD.L