Gemfields Raises Over $200 mln in Separate Offerings

Gemfields Resources, a U.K.-based company engaged in exploring, mining, processing and selling colored gemstones, said on Wednesday it had raised an additional $60 million to aid its bottom line to well beyond $200 million.

The gem exploration and mining company has 3.09 million shares, which at a 26 pounds per share value in early afternoon trade on the London Stock Exchange, give the company a market value of 80.34 million pounds ($143.6 million).

Gemfields in June 2008 acquired a 75 percent stake in Zambia’s Kagem emerald mine, the largest emerald mine in the world, from Pallinghurst Resources by issuing shares worth $80 million, giving Pallinghurst a majority stake in the company.

During the last three years, Kagem produced an average of 6.5 million carats of emeralds annually.

Last week Gemfields, which has rights to the Faberge luxury goods brand, made a 33 million pound ($59.1 million) takeover offer for Tanzanite One Ltd, the biggest miner of the blue-violet gemstone only found in the east African nation of Tanzania, north-east of Zambia.

Gemfields and Pallinghurst Resources have so far bought 13.7 percent of Tanzanite One’s shares and have a conditional irrevocable undertaking to buy an additional 19 percent.

Gemfields also owns cutting facilities in India and its major properties include the Mbuva-Chibolele Mine, and the Kariba Amethyst Mine both of which are located in Zambia.