RAPAPORT… Private equity firm Pallinghurst Resources would hold majority stake in Gemfields Resources worth about $113 million (GBP48.3 million) and reportedly granted the junior miner rights to use the Faberge name to market colored gemstones. Pallinghurst bought Faberge early in 2007, and vowed to revive the brand as the world’s leading supplier of colored gemstones.
Pending Gemfields’ shareholder approval, Pallinghurst would hold 55 percent stake in Gemfields and the junior would hold 75 percent share of the Kagem emerald mine in Zambia, which is currently owned by a Pallinghurst subsidiary. The deal is classified as a reverse takeover according to London’s alternative investment market (AIM) rules.
“The vision of supplying a range of ethically sourced colored gemstones with guaranteed provenance, and with the premium stones bearing the Faberge brand name, creates an attractive value proposition,” said Brian Gilberston, CEO of Pallinghurst.
While the company is primarily focused upon higher-end gemstones, in October it committed to market amethysts and pink tourmaline as well. Pallinghurst has more than $700 million in assets.