Mustang Resources buys stake to explore rubies in Mozambique

Australian Mustang Resources will buy a 80% stake in non-listed company, Montepuez Minerals, in terms of a contract already signed and published in Perth.

By purchasing the 80% stake, Mustang Resources now controls 64%, 56% and 56% in three rubies operating licenses, which together account for 15 800 hectares in Montepuez region of Cabo Delgado province, north of Mozambique.

Under the contract, the Mustang Resources has committed to make an initial payment of $ 1.5 million, with $ 150,000 in cash and the remaining share in the company's own shares.

The contract involves an additional payment of $ 2 million when they are extracted 500 carats of rubies and another 2.5 million, of which $ 750,000 in cash, after the extraction of 10,000 carats