GREENVILLE, SC, Sept. 17, 2013 /PRNewswire/ - Scio Diamond Technology Corporation (OTCBB: SCIO) (hereinafter "Scio" or the "company") today announced that it has entered into product specific Joint Venture Agreement to produce Type lla, Single Crystal CVD diamond for a specific gemstone market.
Scio Diamond has signed a Joint Venture agreement as the technology and delivery provider and has teamed with two partners who bring more than 75 years collective experience in the gemstone industry giving the consortium financial strength while allowing the production to be vertically integrated.
The joint ventures' facility will be located in China, and will be initially fitted out with 100 Scio designed diamond-growing reactors as well as support equipment, such as lasers operation and HPHT pressing machines. The facility will have the capability to expand to 400 diamond-growing reactors over the next 2 years. Scio's current production technology has the produces 32,000 plus rough carats of diamond annually with its 10 growers. This is greater than a 50% improvement over 1-year ago. The Joint Venture will be employing the next level of technology at its outset, which will increase production by an additional 50%.
Scio is providing its patented CVD Diamond Technology to the Joint Venture through a licensing agreement that provides Scio with both an equity position and licensing revenues. Scio's partners are responsible for providing the Joint Venture funding as well as associated technologies. "This venture affirms the acceptance of Scio's technology platform and our proven ability to mass produce quality diamond, by two of the industry leaders in their respective fields", says Michael McMahon, Scio's CEO.The new entity is estimated to begin producing diamond in the summer of 2014. "This is a significant time in the history of Scio Diamond", said McMahon. "We have spent our first year of operations focused on the mass-production of high quality diamond, which has now been recognized".