Pallinghurst Resources’ fully-owned subsidiary Rox Ltd. will be purchasing 55% stake in Gemfields Resources Plc., and in exchange will handover its holding of 75% in the Kagem mine, to Gemfields.

The agreement also allows Gemfields a 15 year license to use the Fabergé brand owned by Pallinghurst Resources, to market gemstones (excluding diamonds) across the globe. It also has the option of 25 licenses for gemstone exploration in Madagascar. Pallinghurst said the deal strengthens its position in international gemstone market, and supports its aim to acquire 20% of the coloured gemstone market.

“We have long held the view that the coloured gemstone industry is unusually fragmented and undercapitalised... Pallinghurst Resources believes that a significant opportunity exists in pursuing consolidation and vertical integration of the coloured gemstone industry,” said Pallinghurst chairman Brian Gilbertson.