Merlin Diamonds to revive Northern Territory mine with AUD$17m in funding

Merlin Diamonds (ASX:MED) has obtained AUD$17 million in funding to reboot operations at its Merlin diamond mine in Australia's Northern Territory.

Proactive Investors
reports that Merlin, formerly North Australian Diamonds, obtained the funding via various capital initiatives including an $8 million convertible note agreement with an international investor. The remaining $9 million was raised via share agreements with four international investors.

The Merlin diamond mine in the Northern Territory is currently the second largest diamond resource in Australia and is host to an unusually high percentage of gem-quality diamonds, in excess of those found at Argyle, Australia's largest diamond mine.

Diamonds excavated from the mine are renowned for their white lustre and large dimensions, and the mine was also the source of the biggest diamond ever found in Australia – a 104.73 carat white gem quality stone which was valued at USD$525,000 in 2002.