(Alliance News) - Sapphire and gemstones firm Richland Resources PLC on Thursday said two milestones for its sale of a project to Fura Gems Inc have been passed.
Richland announced the sale of the Capricorn sapphire project, in Queensland, Australia, to Fura in late June.
Fura has an option, for CAD150,000, or GBP89,920, to buy the project until July 31. It has so far paid CAD25,000 of that, with CAD125,000 pending as it requires Toronto Stock Exchange approval.
It would cost Fura USD185,000 in cash and 4.9 million Fura shares should it go ahead with the deal.
The deal would make Richland a cash shell, and a day after the Fura announcement said it will look to secure debt or equity funding to buy a new mining project.
The two conditions passed are a "no objection" letter from the Bermuda Monetary Authority and the renewal of the two main licences at Capricorn, ML 70419 and ML 70447, to March 2024.
One of the remaining conditions remains the approval of Richland shareholders. The company is currently in talks with Fura to expedite the transaction and thereby shorten the period to completion.
Richland shares were 4.0% higher on Thursday at a price of 0.078 pence each.
