Fura Gems Inc. (TSXV:FURA) exercised the option to acquire Two Mining Permits and Three Mining Licenses for Sapphire Mining Project from Richland Resources Ltd (AIM:RLD) for CAD 1.1 million on July 19, 2019. The consideration includes cash of CAD 0.367535 million (CAD 0.125 million and $0.185 million) and 4.8 million common shares of Fura Gems. The common shares issued will be subject to a regulatory hold period of four months and one day from the closing of the acquisition. Fura Gems Inc. and Richland Resources are liable to pay a termination fee of CAD 0.4 million. As of December 16, 2019, Fura's obligation to issue the Financial Assurance Shares and refund the balance of the Financial Assurance Deposits less any environmental liabilities claims 18 months after Completion shall be removed; the composition of the purchase price is amended such that the Consideration Shares shall no longer be payable and, instead, the Cash Consideration shall be increased to $1.25 million (CAD 1.6 million).

The closing is subject to the satisfaction of customary conditions including, inter alia, the Richland Resource's shareholders' approval, receipt of customary Bermuda Monetary Authority authorizations, completion of the renewals of ML 70419 and ML 70447, approval of the TSXV, approval of AIM and the provision of applicable legal opinions concerning the title to the Licenses. As of August 19, 2019, Richland Resources shareholders have approved the transaction. The longstop date is November 15, 2019. As on November 15, 2019, the longstop has been extended to November 30, 2019. As on November 29, 2019, the longstop date has been extended to December 7, 2019. As on December 6, 2019, the longstop date has been extended to December 14, 2019. As of December 16, 2019, the long stop date has been extended to December 20, 2019. As of December 20, 2019, the long stop date has been extended to December 31, 2019. The net proceeds will be utilized to repay the existing Secured Convertible Loan Facility. James Harris, Matthew Chandler and James Dance of Strand Hanson Limited acted as financial advisors to Richland Resources.