American diamond firm Centaurus Diamond Technologies has announced the completion of a joint venture (JV) with Apache Mill Tailings USA, and the acquisition of its 24-acre Johnny Bull Mine in Chloride, Arizona.
The stock-and-cash transaction was valued at $10.08m, consisting of 10 million shares of Centaurus’ stock and $80,000 in cash.
As part of the terms of the transaction, Apache will carry out operations on Johnny Bull Mine and deliver all recovered diamonds, sapphires, emeralds, and gemstones to Centaurus.
Additionally, Apache will sell all noble metals and rare earth minerals to Centaurus at 20% less than spot market price.
Furthermore, both parties have agreed to share 2% of net revenue from their separate revenue streams that originate from the mining complex.
Located adjacent to the gold mining town of Chloride, Arizona, the Johnny Bull Mine is a 24-acre site and is less than 90 minutes away from Las Vegas.
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Apache has selected Sierra Enterprises to launch operations in late May. Over one million tonnes of tailings are available for immediate processing, and the entire ore deposits are estimated to be worth $22bn.
Centaurus Diamond Technologies CEO Chas Radovich said: “After reviewing the latest spectroscopy assay data and imagery, as well as the third-party assay reports, it made for an easy decision for our Board of Directors in the interest of our shareholders.
“We have minimised our costs and risks in this venture and stand to profit greatly as we integrate these ‘Made In America’ diamonds and gemstones into our operations for both industrial and jewelry-grade use.”
Spectroscopic assays were carried out at eight locations to verify the mineral wealth. The outcome of assays shows that all locations have a rich deposit of Kimberly Dyke due to a local caldera formed as a result of volcanic activity.