Gemstone miner Greenland Ruby DK ApS has signed a long-term landmark agreement with a US-based private fund to finance various mining projects.

According to Greenland Ruby, the US$18-million funding from Nebari Natural Resources Credit Fund I, LP – to be spread in three tranches – could be one of the largest in the history of the coloured gemstone trade.

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.”

The fund will allow Greenland Ruby to continue mining at its existing site and begin activity at other licensed sites. The first round of financing is expected before the end of May. 

Greenland Ruby officially opened its ruby and pink sapphire mining operations in 2017 at Aappaluttoq, southwest Greenland. According to the company, Aappaluttoq is the first coloured gemstone mine in Greenland, and one of the first mines to commence modern operations in the country. 

The current mining 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 of gems.

Daniel Freuman, managing partner of Nebari, said this is the company’s first transaction in the Nordic region. Nebari is a private fund exclusively focused on financing bespoke debt facilities for public and private companies within the mining sector.

“Lending to companies that 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,” noted Freuman.