Gemstone producer TanzaniteOne (AIM: TNZ) said today it had formed a joint venture (JV) called TanzaniteOne CuttingEdge to focus on precision cutting and visual optimization of predominantly lighter coloured tanzanites.
TanzaniteOne will own 51% of the company with the other 49% held by its JV partners headed by former sales executive for Argyle Diamonds Gavin Pearce and Chief Executive of Charles Edward Jewellers Edward Eramanis. Pearce will now serve as the new company’s marketing and sales director.
“A principal aim of the JV is to increase the value of the lighter pastel coloured and slightly included tanzanite. This initiative will complement and enhance Tanzanite One's present sales strategy, which is centred on the sale of rough tanzanite via the sight holder system,” said Executive Director of TanzaniteOne Bernad Olivier.
The JV will cut calibrated stones on order, eliminating the risk of having large quantities of unsold stock. These stones will then be sold through existing retail connections in Europe and Asia.
TanzaniteOne said the formation of the JV has already resulted in the signing of two memorandum of understandings with international cutting and distribution houses GRAFGEM S.A. and Alankara SKR.
The news helped TanzaniteOne to a 10% rally on the London Stock Exchange today.