American Gem completes financing

Toronto-listed American Gem has issued to European investors 1.5 million shares at $3.88 per share.

Proceeds from the $5.8-million offering will be used to make property payments and develop the Montana sapphire properties.

The company controls more than 30,000 acres of land which host alluvial sapphire deposits. Tests indicate that 88% of the stones recovered are gem quality and 10% are greater than 5 carats in size.

American Gem hopes its Drywood Creek property will be in full production by June.