Blumont to invest S$2.22m in Merlin Diamonds

Australian diamond mine further diversifies mineral assets.

The board of directors of Blumont Group Ltd. (Blumont) announced that the company has, on 16 February 2014, entered into a subscription application letter with Merlin Diamonds Limited (MED), pursuant to which the Company has agreed to subscribe for 26,000,000 fully paid ordinary shares in the capital of MED at the subscription price of A$0.075 per MED Share (approximately S$0.08532751) for a total subscription price of A$1.95 million (approximately S$2.22 million).

The subscription consideration will be fully satisfied in cash, funded from the internal resources of the Group, and paid to MED upon completion of the subscription. The subscription consideration is intended to be applied towards the further development of MED’s flagship Merlin diamond mine project.

As at the date of the application, the MED Shares to be subscribed for pursuant to the subscription constitute approximately 12.25% of the existing issued share capital of MED and approximately 10.92% of the enlarged issued share capital of MED upon completion of the subscription.

"Since late 2012, the Group has embarked on a new strategy to acquire and hold multiple and diversified mineral and energy resources assets and it has been actively pursuing and acquiring new investment opportunities in this sector," Blumont said in explaining the investment.