Leading coloured gemstone producer Gemfields is expanding its emerald business to Latin America.

The AIM-listed company said yesterday that it had acquired two new projects for mining the green gemstone in Colombia in deals worth $22.5m (£14.5m).

Gemfields chief executive Ian Harebottle said yesterday that the firm was “delighted” about entering Colombia, calling it a “country with tremendous potential”.

“The proposed acquisitions will require further work and additional exploration before any meaningful production commences, but they are clearly in line with our strategy of expanding Gemfields’ global footprint in a considered yet cautious fashion,” he added.

Gemfields already owns emerald mines in Zambia and ruby projects in Mozambique.

While the company’s share price closed the trading day yesterday down 1.22 per cent, the stock has been buoyed by a year of strong performance.

The share price is up 32 per cent in the year to date.

In the past five years, it has risen almost 1,600 per cent.