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Lucapa Diamond agrees to acquire Merlin Diamond Project

Published by
Global Mining Review,


Lucapa Diamond Co Ltd has announced that it has entered into a binding asset sale agreement (ASA) for the acquisition of a 24 km2 mining lease and a 283 km2 exploration tenement encompassing the mining lease and associated equipment and assets from Merlin Operations Pty Ltd.

Merlin Operations is a wholly-owned subsidiary of Merlin Diamonds Ltd, and the Merlin Tenements are located in the Northern Territory of Australia, approximately 720 km south-east of Darwin.

The acquisition is complementary to Lucapa’s existing portfolio, adding a near-term development opportunity with an existing 4.4 million carat mineral resource estimate in Australia that was previously classified and reported in September 2014, in accordance with the guidelines of the JORC Code to Lucapa’s two existing producing assets in Angola and Lesotho. The approximately 300 km2 tenement package also comes with significant exploration upside through over 70 unresolved anomalies in areas where all kimberlite discoveries have been diamondiferous.

Stephen Wetherall, Lucapa Managing Director, comments:

“This is a strategic acquisition for Lucapa which represents a value-accretive and logical step in Lucapa’s production strategy. The project is well known for being Australia’s large stone producer and is a strong complementary fit with the company’s two existing niche productions in Africa that are set to produce solid returns for Lucapa in 2021.

“The success of the placement element of the capital raising, and the high level of interest received from existing and new institutional investors, demonstrates the quality of our existing assets and the strategic nature of the Merlin Diamond Project acquisition and our future. We look forward to getting on the ground, completing the work to deliver the various studies and bringing Merlin into production as soon as possible.”

Read the article online at: https://www.globalminingreview.com/mining/26052021/lucapa-diamond-agrees-to-acquire-merlin-diamond-project/

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Australian mining news African mining news