THE DIAMOND PAGE — American Gem considers merger

Montana-based American Gem (GEM-T) is considering a merger with Great Northern Mining, the world’s largest sapphire producer.

Great Northern operates sapphire mines in Australia and has gem-cutting facilities in Sri Lanka.

American Gem says the combination of Great Northern’s exploration and development experience with American Gem’s sales and marketing expertise would benefit to shareholders of both companies. American Gem also owns proprietary heat treatment technology, which could be used to enhance the color of some of Great Northern’s sapphires.

Great Northern, listed on the Australian Stock Exchange, controls sapphire resources totalling 300

million carats, while American Gem has a resource of 62.9 million carats in Montana.

Discussions concerning the merger, which is subject to negotiation of a merger agreement, as well as regulatory and shareholder approval, are under way.