A Gardnerville-based company that's been looking for diamonds in Brazil said last week it's reached a deal to sell a controlling interest in itself to U.S.
Canadian Minerals Inc.
of Las Vegas.
Juina Mining Corp., which is publicly held, didn't disclose terms of the deal.
Its stock was up 77 percent to 16 cents from 7 cents on the day that it announced the acquisition.
In a statement, Juina Mining said it "explored several options, and the potential acquisition by U.S.
Canadian Minerals was the best fit for the company and its shareholders.
U.S.
Canadian Minerals will be very influential, with their global contacts, in assisting the company with its licenses in Brazil." Since 1997, Juina has been exploring a 2,500-acre property in the Brazilian state of Mato Grosso.
The company reported that it recovered 3,000 carats of diamonds both gems and industrial-grade during tests in 1999.
Operational problems shut down the operation a short time later.
In 2000, Juina sold 49 percent of its interest in the property to Emerging Africa Gold.
Last week, Juina said in a press release that the acquisition by U.S.
Canadian Minerals would be "a major step in the procurement of the financial backing needed to move forward in the funding of the company's operations." James McFadden of Gardnerville serves as chairman and chief executive officer of Juina.
He previously worked as vice president of sales for Laughlin Associates in Carson City.
U.S.
Canadian Minerals, meanwhile, was known as Barrington Foods International until earlier this year.
In its previous identity, the company marketed soy-based beverage products along with toothpastes, soaps and shampoos, although it told the Securities and Exchange Commission last year that it had posted no significant revenues or profits.
Since changing direction and its name U.S.
Canadian Minerals has been looking for mining properties to option as well as joint venture partners.
Its common stock was up 45 cents to $6.50 after announcement of the Juina acquisition.
