fura gems inc · the only listed company in the world focusing on mining and marketing of both ......
TRANSCRIPT
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EXECUTIVE SUMMARY
The only listed company in the world focusing on mining and marketing of both rubies and emeralds with
rights to proven deposits of Rubies in Mozambique and Emeralds in Colombia, with a potential to
include diamonds in near future
A group company of Forbes and Manhattan Inc (“F&M”), the renowned Toronto based Resource-
focused Merchant Banking group with extensive experience in the natural resource and mining sector with
a solid track record of identifying high-quality mining assets and advancing them successfully to production
A highly experienced management team led by Dev Shetty, former Executive Director and Chief
Operating Officer of Gemfields, credited with building world’s largest Emerald (Zambia) and Ruby
(Mozambique) mines
INTRODUCTION TO FURA GEMS INC
OVERVIEW OF COLOURED GEMSTONE AND DIAMOND SECTOR
Stock Exchange TSX Venture
Exchange
Ticker FURA.V
Last traded price (C$/share) 0.87
Shares Outstanding (MM) 79.93
Current Market Cap (C$MM)
69.54
Warrants and Options (MM) 12.83
Fully Diluted Market Cap
(C$MM) 80.70
52 weeks high (C$/share) 1.13
52 Weeks low (C$/share) 0.19
Capital Raise to Date
(C$MM) 11.5
FURA Gems Inc is a Toronto and Dubai based Gemstone mining
and marketing company with a focus on exploring, developing and
bringing to production its rich Ruby and Emerald Assets in
Mozambique and Colombia respectively
FURA operates in a market with a significant supply gap with
Burmese Ruby resources depleting and a shortfall in supply of
Colombian Emeralds driven by a lack of investment by incumbent
players
FURA presents Low-Risk, Low-Cost and Higher Return
investment opportunity with a short payback period proposition
to Investors, by having an experienced management team with a
good understanding of mining, geology, distribution and marketing
Fura’s strategy to invest only in known geology / deposits mitigates
the risk of investing in early stage exploration
The Global Rough Gemstone market is worth an estimated ~$23BN annually and is
continuously growing in terms of demand even though supply is represented by only
a few incumbents
Diamonds - Sector led by De Beers who organized the sector via large scale
mining and consistent supply
Colour gemstones - Sector led by Gemfields with operating mines in Zambia
and Mozambique. Unlike Diamonds, the highly unorganized and fragmented
sector provides a huge opportunity.
As of 02 February 2018
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WHY MOZAMBICAN RUBIES AND COLOMBIAN EMERALDS?
Mozambique – Ruby
Colombia – Emerald
Both Colombia and Mozambique provide an early stage entry to unlock the value of an unorganized and under capitalized sector
Political support and willingness for growth and promotion of gemstone sector in Colombia and Mozambique
Market Acceptability
Within 8 years of discovery, penetrated 50 %
of world’s ruby supply
Rich Market
Responsible for 50 % of world’s emerald value
supply
Political Stability
Government support to promote the sector
Mining laws attractive for foreign investors
One party rule since 1975
Government Support
Regional peace post green war
Government actively seeking foreign investment to
promote the sector
Low Mining Costs
Low stripping ratio for both secondary gravel and
primary amphibolite
High Quality
Perceived to be ‘high quality’ as Colombia being a
traditional source of high quality emeralds.
Infrastructure Support
Good roads leading to mining areas
Easy access to the airports
Electricity available
Under-utilised Sector with Scope to Add Value
Operating but undercapitalized mines with good geology
Old and ancient exploration and mining methods
OVERVIEW OF FURA STRATEGY
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OVERVIEW OF FURA MINES AND ASSETS
COLOMBIA MOZAMBIQUE
Product Emerald Emerald Ruby
Licenses 122 – 95M (Coscuez Emerald Mine) ECH -121 4392L, 3868L, 3869L ,6811L
Asset Type Operating Mine Exploration Licence Exploration Licenses
Location Boyacá Department Boyacá Department Montepuez District, Cabo Delgado Province
Area 46 hectares 646 hectares 394.24 sq.km
Geology Primary Calcite Veins Primary Calcite Veins Primary and Secondary Mineralisation
Mining Method Underground Underground Open Pit
Ownership FURA: 76%, Local Partners: 24% FURA:100% FURA: 80%, Local Partners: 20%
Coscuez Emerald Mine
Mozambique Licenses
▪ The assets are
strategically located in
Cabo Delgado province,
Montepuez districts,
highly prospective
grounds for Mozambique
rubies
▪ The initial finding from
the artisanal pits shows
the occurrence of both
primary and secondary
mineralization consisting
of both higher and lower
quality rubies.
▪ Historically significant, having been in operation for
more than 400 years and produced some of the
renounced pieces like 1,759 carats Guinness Emeralds
▪ One of the top three producers of emeralds in
Colombia
▪ Currently being operated on a small-scale basis
▪ Fura, as a short-term plan, to immediately focus on
improving the mine’s infrastructure, developing safe
and effective operations
▪ Long term, Fura plans gradual modernisation of the
mine go assure consistent supply and set-up a
marketing platform to promote Colombian emeralds
globally.
SRK estimated $1bnJORC resource
Source for Secondary Ruby
Source for Primary Ruby
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FURA HAS A WELL EXPERIENCED MANAGEMENT TEAM
……AND ADVICE FROM F&M BOARD AND LEADERSHIP
FURA BOARD FURA CORE MANAGEMENT
Joe Carrabba – Chairman Over 40 years of international experience in the mining industry Former Chairman and President & CEO of Cliffs Natural
Resources Inc., Prior joining Cliffs, held various senior
operating positions with Rio Tinto Plc, including President
and COO of Diavik Diamond Mines.
Ashim Roy – Vice President, Operations Former General Manager for the Montepuez ruby mine in Mozambique and the Head of Geology and Exploration at the Kagem emerald mine in Zambia and was responsible for developing the greenfield ruby project, Montepuez ruby mine, which is believed to be one of the largest ruby deposits in the world.
Dev Shetty – President and CEO Former COO of Gemfields Plc where he played a significant role in the turnaround of the company and in developing Gemfields' mine and market strategy. Played a vital role in developing the world's largest producing emerald mine in Zambia and the Greenfield ruby project in Mozambique, which is believed to be the largest ruby deposit in the world. Also, responsible for initiating Gemfields' entry in to the Colombian and Ethiopian emerald. Previous experience in the fields of start-ups, M&As, business turnaround, project management, strategy and finance from senior roles with a private equity firm and a manufacturing company. Dev is a qualified charted accountant.
Rupak Sen – Vice President, Marketing & Sales Former Acting Global Marketing & Polished Sales Director of Gemfields. He was as also the Marketing & Polished Sales Director for Asia. Responsibility included advertising, PR, research, sponsorships, education & training and co-marketing Prior to Gemfields worked with De Beers and The Swatch group. Over 20 years’ experience in the jewellery and watch industry
Tarun Malkani – Business Advisor and Director (India) Formerly held senior management positions in a variety of functional areas with Rio Tinto, Alcan, Eastman Chemicals, Monsanto, Bayer and Exim Bank. A decade of experience in metals and mining and was the Chief Operating Officer for Rio Tinto's Bunder diamond project. Tarun is a chemical engineer with Master’s in Business Administration
Jamie Lalinde – Board Member More than 30 years of private and investment banking experience having worked for JPMorgan Chase and Citibank. Founder, investor, and manager of several natural resources companies in Colombia
Ryan Ptolemy - Chief Financial Officer
Experienced CFO for public and private mining sector companies listed on the TSX and TSX venture exchange within the Forbes and Manhattan group. Ryan is a Certified Public Accountant and Certified Financial Analyst charter holder.
Robert Schrader – Board Member
Former partner and project Director at La Esperanza Mining Company –Colombia, a geological prospecting company Also civil engineering experience in companies as Schrader Camargo Ingenieros S.A., IPCO Group (Singapore), Ferrostaal, Fishback and Moore
Damien Lopez - Legal Counsel Corporate securities lawyer and legal consultant to various Toronto Stock Exchange and TSX Venture Exchange listed companies within the Forbes and Manhattan group. Previously experienced with a reputed law firm on a variety of corporate and commercial transactions.
Larry King: American Icon Jim Rogers: Co-founder of Quantum Fund Stan Bharti: Founder of F&M
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SINCE LAUNCH IN JANUARY 2017…….
Jan’17 Dev’s appointment as President & CEO
Feb’17 Fura Emeralds becomes Fura Gems
May’17 C$3.05mn raised via fully subscribed
private placement
May’17 Core management team appointed
Jun’17 Dubai HQ set up
Jul’17 C$4.00mn raised via fully subscribed
private placement
Sep’17 Mozambique Ruby assets announced
Oct’17 Drilling commenced in Mozambique
Oct’17 Announced acquisition of Iconic Colombian
Emerald Mine, Coscuez
Nov ‘17 Closed Mozambique license acquisition
Jan’18 Closed acquisition of Coscuez
Jan’18 Fura closed tranche 1 of private placement
(C$ 4.5mn)
SUMMARY
With a compelling Low-Cost, High Value Proposition consisting of Rich Emerald and Ruby Assets,
there is an opportunity to participate in building of a world class Gemstone Mining and Marketing
company, led by an Experienced Management team with a solid track record, in geographies with Good
Infrastructure, Government & Community support