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RAPAPORT... True North Gems Inc. was awarded an exclusive 30-year mining license for the Aappaluttoq ruby deposit in southwestern Greenland. "Today marks the culmination of our exploration, delineation and major permitting activity. Since 2004 we have worked hard to plan a sustainable mining operation that showcases the economic opportunities for our shareholders and the people of Greenland," said Nicholas Houghton, the president and CEO of True North Gems. "This also heralds the beginning of our transformation from an exploration company to a producer. It will enable us to showcase and deliver a new supply of rubies and pink sapphires to the worldwide gemstone industry. I would like to take this opportunity to publicly thank all who have worked with us and helped to achieve this major milestone." The Aappaluttoq ruby deposit will be an open-pit development with an initial life expectancy of nine years. True North expects the mine to produce 80 new jobs in Greenland with roles from its mining operations on through to gemstone grading in the Nuuk Processing Facility. The project will also act as a stimulus for other investment in both secondary and supporting industries, the company surmised. Under the exploitation license agreement, which takes effect March 10, True North Gems will pay an annual gross revenue royalty of 5.5 percent to Greenland on all sales of rubies and pink sapphires from the Aappaluttoq deposit. The royalty will be payable when the total aggregate paid by True North in corporate taxes, withholding taxes and "surplus royalty" are less than the calculated gross royalty in that calendar year. The surplus royalty is calculated at a rate of 15 percent on earnings before financial items and tax on profit.
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