Merlin Diamonds raises $1.76M for Australian mine development
Merlin Diamonds secured $1.76 million (AUD1.95 million) via private placement of 26 million of its ordinary shares. Singaporean investment holding company Blumont Group bought the said ordinary shares at $0.75 each. The deal will finalize by March 2014
Under the terms of the transaction, Blumont will own a 10.9% stake in the Australian company once the deal is completed, the report detailed. The company plans to use the proceeds of the sale for the development of its diamond min located in the Northern Territory of Australia.
Merlin Diamonds just resumed production last year. The company is known for its production of top quality diamonds and the largest diamond in Australia, which is a 104.73-carat gem. Being the second-biggest diamond reserve in the country, the mine holds approximately 7.2 million carats of diamond resources. The Argyle diamond mine of Rio Tinto takes the first rank in the same category. Pre-feasibility studies have obtained 10,6000 carats of diamonds, the per-carat-value of which is pegged at $351, Diamonds reported.