Greenland Ruby DK ApS, a ruby and sapphire corundum miner in Greenland; and Nebari Natural Resources Credit Fund I, LP, a financier in the mining sector; announce today a landmark transaction in the colored gemstone industry, with execution of an agreement for a $18 million working capital facility. The first funding round is expected before the end of May. The facility, which came to be known as Project Aurora, is spread over three tranches and is believed to be one of the largest financings in colored gemstone history.
Magnus Kibsgaard, CEO of Greenland Ruby, stated “This is a tremendous milestone for Greenland Ruby, as Nebari’s financing enables us to accelerate our growth plans. Furthermore, Nebari’s funding is a strong vote of confidence in our project and helps gear us for future success. With the new financing, we will not only continue mining at the current site, but also begin activity at our other licensed sites, where we have already recorded exciting exploration results. I want to thank Nebari, which has a successful track record in financing high-level mining companies, for its invaluable development and organizational advice. This is not just a finance deal but a true partnership.”
Greenland Ruby A/S officially opened its ruby and pink sapphire mining operation in 2017 at Aappaluttoq, in southwest Greenland, after the Greenlandic government awarded the company its mining license. Aappaluttoq is the first colored gemstone mine in Greenland, and one of the first mines to commence modern operations in the country. The current mine site is estimated to have at least 10 years’ worth of gem-quality ruby and pink sapphire material and this will be extended by two other licensed mining areas, ensuring consistent supply for the jewelry industry for many years.
Greenland Ruby’s mining yield is processed at its ultra-modern, state-of-the-art cleaning and sorting operation which is adjacent to the mine. The majority of mine workers and material processors are Greenlandic, and thus jobs and benefits are being provided to a country intent on diversifying its industrial profile. A percentage of Greenland Ruby’s worldwide gem sales go to the company’s PinkPolarBear Foundation, a non-profit organization established by the company to support education and research into the effects of climate change in the Arctic, with a particular focus on Greenland.
Greenland Ruby gems are produced under the strictest human rights, labor, environmental, mining, governance, and product disclosure standards of Northern Europe, as also detailed by the Responsible Jewellery Council (RJC). The company is currently undergoing a third-party independent audit of these responsible practices as required for its membership in RJC.
Once processed, each Greenland Ruby gem is traceable from mine-to-market and comes with a Certificate of Origin. This program is made possible by a customized inventory system, whereby each parcel of rough material has a number, and all gems produced from that parcel are given their own individual number. These numbers stay with each gem through heat treatment, cutting, and placement in jewelry.
“I want to thank the Greenland Ruby team, who are working extremely hard to make the company a great success,” says Kibsgaard. “I also want to thank our shareholders who have been visionary in investing with us over the years. Greenland Ruby is dedicated to our project’s ongoing success. This financing is occurring at a pivotal moment when all eyes are on Greenland. Our responsible mining practices will pave the way for future sustainable investment and development in the sector.”
Nebari Natural Resources Credit Fund I, LP is a private fund exclusively focused on financing bespoke debt facilities for public and private companies within the mining sector. Nebari’s combination of technical experience, operational capabilities, and finance experience provide it with a true competitive edge.Daniel Freuman, Managing Partner of Nebari, stated “we are very pleased to be joining the Greenland Ruby story with what we hope will be transformational capital in support of its business plan. Lending to companies which possess high quality assets and credible management teams is core to our strategy, and we are also attracted by Greenland Ruby’s creative approach to assuring mine-to-customer authenticity of origin and sustainable practices. This is our first transaction in the Nordic region, and we hope it will lead to other opportunities.”