Merlin Diamonds raises $1.76 million to develop Northern Territory mine

Merlin Diamonds Limited has raised U.S. $1.76 million from Blumont Group Ltd. In order to continue the development of its Merlin diamond mine in Australia's Northern Territory.

The capital was raised through the placement of 26 million fully paid ordinary shares in Merlin Diamonds to the Singapore based investment company Blumont Group at a price of 7.5 cents per share. Settlement is scheduled for late March 2014, following which Blumont will have a 10.9 percent stake in the mining operation on completion of the settlement.

The Merlin mine, which is known for producing large, high quality, white, yellow, cognac and champagne diamonds, including Australia's largest diamond, a 104.73 carat stone, began operations again last year. The mine comprises 14 kimberlite pipes, grouped into four clusters. The total mineral resource for all the diamond pipes at Merlin is estimated at 7.2 million carats, which makes the project the second largest diamond reserve in Australia after Rio Tinto's Argyle diamond mine.