The recently announced $10m asset-for-shares swap with Fura Gems Inc (V:FURA) shifts Mustang’s primary focus to the Caula Graphite and Vanadium Project, which is located along strike from Syrah Resources’ large graphite project. Maiden Caula graphite and vanadium resources reflect high grades (13.4% and 0.37%, respectively). The scoping study due in Q318 will provide investors with insight into project economics, but the good grades and positive graphite metallurgical test results to date are encouraging signs. Trial mining could generate first revenues by mid-2019.
Montepuez to be merged into Fura Gems
Mustang Resources has announced a proposed A$10m transaction whereby Mustang will contribute its Montepuez ruby project into Fura Gems (FURA.TSX) in return for three tranches of shares in Fura. The deal structure allows Mustang’s shareholders to retain an indirect interest, of around 8%, in a substantial combined ruby project in Mozambique, which stands to benefit from the injection of funding and additional marketing expertise by Fura. In addition, Mustang’s shareholders also gain exposure to Fura’s Coscuez emerald mine in Columbia, where bulk sampling is already underway.
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