Lucapa to acquire Merlin diamond mine

Merlin kimberlite diamond mine

Located in the Northern Territory, Australia

Lucapa Diamond Company continues to identify and review prospective diamond development projects that offer near term production and value enhancing opportunities for its shareholders. 

In that regard, Lucapa advises that it is participating in the sale process being conducted by the liquidators of Merlin Diamonds Limited (in Liquidation) (MDL) to acquire certain assets of MDL, which include the Merlin kimberlite diamond mine (Merlin) located in the Northern Territory, Australia. 

The Lucapa Board considers that Merlin would be complementary to the Company’s existing niche operating mines and exploration projects in Angola, Australia, Botswana and Lesotho and is a development opportunity that would significantly benefit from the proven capability of Lucapa’s experienced development and operational teams. 

Merlin is a multi-pit mine development opportunity with underground mining potential and is home to Australia’s largest recovered diamond of 104 carats. Lucapa is of the view that the tenements also have considerable exploration potential with a significant number of unresolved exploration targets. 

Following the finalisation of due diligence in a competitive bid process, Lucapa is advancing to final stage negotiations which includes finalisation of transaction structure and drafting of legal documentation. Until such time as the legal documentation is in agreed form and executed, there can be no assurance that the acquisition of Merlin will be completed. 

The Lucapa Board will update the market of material developments as they occur.