FURA ENTERS INTO US$5.5 MILLION LOAN AGREEMENT
TORONTO, ONTARIO - Fura Gems Inc. (“Fura” or the “Company”) (TSXV: FURA, OTC:
FUGMF and FRA: BJ43), a gemstone mining and marketing company with emerald, ruby and
sapphire assets in Colombia, Mozambique and Australia, respectively, is pleased to announce
the execution of a loan agreement (the “Agreement”) with a private company (the “Lender”),
pursuant to which the Lender has agreed to lend and the Company has agreed to borrow US$5.5
million (the “Principal Amount”). The loan will bear interest at a rate of ten percent per annum and
has a maturity date of July 31, 2020, unless the parties mutually agree to an extension. The
Principal Amount of the loan as well as accrued interest will be payable on the maturity date.
The proceeds of the loan are expected to be used for (i) the acquisition by Fura of 100% interests
in each of ruby mining concession 8955C and ruby exploration licence 7414L and a 20% free
carried and non-dilutive interest in ruby mining concession 8921C, each in the Montepuez district
of Mozambique, (ii) the advancement of its Coscuez emerald project in Colombia and its ruby
projects in Mozambique, and (iii) general corporate purposes.
The Lender is both a “related party” and a “control person” of the Company pursuant to Canadian
securities laws. Entering into the Agreement is therefore considered to be a “related party
transaction” under Multilateral Instrument 61-101 Protection of Minority Security Holders in
Special Transactions (“MI 61-101”) but is exempted from the requirement to obtain a formal
valuation pursuant to 5.5(b) and from the requirement to obtain minority approval pursuant to
5.7(1)(f) of MI 61-101, as the loan (i) is on reasonable commercial terms that are not less
advantageous to the Company than if the loan was obtained from an arm’s length party, and (ii)
is not convertible, directly or indirectly, into equity or voting securities of the Company or a
subsidiary of the Company or repayable as to principal or interest, directly or indirectly, in equity
or voting securities of the Company or a subsidiary of the Company. Minority shareholder
approval for the Lender becoming a control person of Fura was previously obtained by Fura at its
annual and special meeting of shareholders held on August 2, 2019. Please refer to the
Company’s management information circular dated July 2, 2019 for more information. The
Company did not file a material change report more than 21 days before the entering into of the
Agreement as the terms of the Agreement were not settled until shortly prior to the entering into
of the Agreement, and the Company wished to complete the loan on an expedited basis.
For more information about Fura Gems Inc., please contact:
Fura Gems Inc.
Dev Shetty – President & Chief Executive
Officer
Tel: +971 (0) 4 240 8760
dev.shetty@furagems.com
Rupak Sen
Vice President – Marketing and Sales
Tel: +971(0) 4240 8760
rupak.sen@furagems.com
Public Relations
Tavistock (UK)
Jos Simson / Barney Hayward
Tel: +44-207-920-3150
fura@tavistock.co.uk
About Fura Gems Inc.
Fura Gems Inc. is a gemstone mining and marketing company which is engaged in the mining,
exploration and acquisition of gemstone licences. Fura’s headquarters are located in Toronto,
Canada and its administrative headquarters are located in the Gold Tower, Dubai. Fura is listed
on the TSX Venture Exchange under the ticker symbol “FURA”.
Fura is engaged in the exploration of resource properties in Colombia and owns a 76% interest
in the Coscuez emerald mine in Boyacá, Colombia. Fura is involved in the exploration and mining
of sapphires in Australia through its 100% interests in two mining permits (EPM 25973 and EPM
25978) and three mining licences (ML 70419, ML 70447 and ML 70451), and rubies in
Mozambique through its 80% effective interest in four ruby licences (4392L, 3868L, 3869L and
6811L) and its 100% interest in ruby licence 5572L.
Regulatory Statements
This press release contains “forward-looking information” within the meaning of applicable Canadian
securities legislation. Forward-looking information includes, but is not limited to, statements with
respect to the use of proceeds of the loan, the Company’s ability to complete any publicly announced
acquisitions, the Company’s exploration activities and mining activities and the Company’s
performance. Generally, forward-looking information can be identified by the use of forward-looking
terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of
such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”
or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the actual results, level of activity,
performance or achievements of the Company to be materially different from those expressed or
implied by such forward-looking information, including but not limited to: general business, economic,
competitive, geopolitical and social uncertainties; the actual results of exploration, development and
production activities; access to sufficient financing to continue the development of its assets; regulatory
risks; risks inherent in foreign operations, uncertainties with respect to the Company’s assets; legacy
environmental risks, title risks and other risks of the mining industry. Although the Company has
attempted to identify important factors that could cause actual results to differ materially from those
contained in forward-looking information, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward-looking information. The
Company does not undertake to update any forward-looking information, except in accordance with
applicable securities laws.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.