Mustang Resources Aims to Get Early Cash Flow

KEY TAKEAWAYS:

• Mustang is holding its first ruby sale auction for which invites have been sent to select miners and manufacturers.
• There is a great potential of ruby mining which is being exploited and the increase in share prices show that investors have a favourable viewpoint.
• The auction proceeds will be used to increase capacity, add working shifts and increase the rate of production.

Mustang Resources Ltd, the company which mines rubies in Mozambique, is all set to get its first sale via ruby sales auction in the upcoming month. The mining company listed on ASX has reportedly sent out private invites to some of the top manufacturing and cutting companies and people from around the world and specifically from Thailand, Hong Kong and India via a closed tender. About 50 of them are expected to participate in the auction which will mark the first sale via auction from the company since it started its operations in Mozambique.

The shares of Mustang had already soared by over 400% back in February when there was a renewed interest in rubies and Gemsfield plc, a neighbour of Mustang in the mining business, had shown considerable success. Mustang has also successfully increased its inventory from about 500c to more than 145,000c in the last year, pointing to its capacity and intent.

The MD of Mustang Resources Ltd, Christiaan Jordaan, has specified that they will have significant revenue first and not wait for 5-10 years to see money coming in, which is generally the case in mining precious stones. A second auction is to be held shortly after the first one, sometime in march next year.

As per Jordaan, the company will use the proceeds from the auction to expand capacity and bring another licensed region in the mining area, which lies between them and the Gemsfields plc mines. Also, they would add in more shifts for workers in order to grow the rate of mining. In the coming years, Mozambique and Mustang both will receive a lot of attention from investors and miners due to the work they are doing now. And as per Jordaan, the rubies are no less than diamonds which in themselves make a $70 billion industry.

About Mustang Resources Ltd (ASX: MUS)

Mustang Resources Limited (ASX: MUS) is an emerging gemstone explorer and developer focused on delivering significant cashflows in the near term from the highly prospective Montepuez Ruby Project in northern Mozambique, with first rough ruby sales scheduled for October 2017.

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