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Merlin Diamonds Completes Oversubscribed Entitlements Offer Raising $5.5M
Yesterday, Merlin Diamonds Limited (ASX: MED) advised that the Entitlements Offer announced to shareholders on 5 January 2017 has now been completed, raising approx. $5.5 million.
The Entitlements Offer provided shareholders with the opportunity to subscribe for 1 new share with ½ an option for every 2 shares held at the record date. The price of the new share with an attaching option is 1.3 cents and the option will have an exercise price of 1.3 cents.
The Entitlements Offer was oversubscribed and fully underwritten by Triple C Consulting Pty Ltd, with Triple C also placing the shortfall of 267,903,139 shares raising an additional $3.4 million.
Proceeds of the offer will be used for:
- Merlin diamond mine operations
- Mine capital.
- Corporate costs and working capital.
Merlin Investments Highlights
- Merlin Diamonds wholly owns the producing Merlin diamond mine located near Borroloola, Norther Territory.
- There are 13 known diamond-bearing kimberlite pipe vents and over 80 exploration targets.
- Nine of the kimberlite pipe vents have been previously mined by Ashton Mining and Rio Tinto.
- Merlin previously produced Australia’s largest diamond at 104 carats.
- Since the recommencement of operations in October 2016 a 35.3 carat diamond has been recovered.
- Merlin Diamonds has a ~65% gem quality compared to Argyle which is ~5%
- A successful mining campaign delivered circa 70,000 tonnes of ore which is currently being processed during the wet season.
- The team includes high level experienced security surrounding the finished product of rough diamonds.
The initial processing phase up-scale with the commissioning of the scrubber in January 2017 significantly improves the preparation of the ore and through put
