Lucapa Diamond Company (ASX: LOM) - Managing Director, Stephen Wetherall
Managing Director, Stephen Wetherall
Source: Lucapa Diamond Company
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  • Lucapa Diamond Company (LOM) completes the acquisition of the 4.4 million carat Merlin Diamond Project by its fully owned subsidiary Australian Natural Diamonds (AusND)
  • AusND has now settled an $8.5 million total consideration as well as acquiring the 24 kilometres squared mineral lease and 283sqm exploration licence
  • The mineral lease contains 11 previously discovered kimerberlite pipes in three clusters with an existing 4.4 million carat JORC 2012 compliant mineral resource
  • Lucapa says it’s in the process of finalising a scoping study to be released shortly, demonstrating the potential for the Merlin mine to be a long-life diamond producer
  • Company shares last traded at 8.7 cents on December 10

Lucapa Diamond Company (LOM) has completed the acquisition of the 4.4 million carat Merlin Diamond Project by its fully owned subsidiary Australian Natural Diamonds (AusND).

With the project located in the Northern Territory of Australia, AusND has now settled an $8.5 million total consideration, comprising both the liquidators of Merlin Diamonds and an environmental bond to the Northern Territory government.

AusND has also acquired the 24 kilometres squared mineral lease and 283sqm exploration licence located in the Northern Territory of Australia, approximately 720km southeast of Darwin.

The mineral lease contains 11 previously discovered kimerberlite pipes in three clusters with an existing 4.4 million carat JORC 2012 compliant mineral resource.

Additionally, Merlin has two known diamondiferous kimberlites on the licence as well as 70 unresolved anomalies where all kimberlite discoveries are known to be diamondiferous.

Lucapa said it’s currently in the process of finalising a scoping study to be released shortly, which aims to demonstrate the strong potential for the Merlin mine to be a long-life diamond producer.

Consultations with the Native Title Party and the Local Aboriginals Groups via the Northern Land Council will now be sought in 2022 due to delays with the latest COVID-19 outbreak.

AusND and Legend International Holdings (in liquidation) have mutually decided to terminate the agreements in relation to their buy-back options and milestone payment rights over the Merlin mineral lease and exploration licence.

Lucapa Diamond Company managing director, Stephen Wetherall, said the company is grateful to all involved in finalising the acquisition.

“The successful development of Merlin will be transformative for Lucapa as the delivery of the Company’s third producing mine will expand our production base and revenues considerably elevating Lucapa into a mid-tier diamond producer,” he said.

Company shares last traded at 8.7 cents on December 10.

LOM by the numbers
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