Merlin Diamonds was earlier known as the North Australian Diamonds, signed an agreement for $8m in convertible notes with an international investor, at an interest of 6.5% valid through one year, reported Proactive Investors Australia.
The funds will be exclusively employed for the re-commencement and subsequent operation at the mine.
Merlin Diamonds also executed a share placement comprising 43 million shares at $0.21 a share with four other investors to raise an additional $9m.
The said mine contains indicated and inferred resources of 19 million tons at 0.24 carats a ton from 4.31 million carats and probable reserve of 11.1 million tons at 0.26 carats a ton from 2.89 million carats.
Scheduled to begin operations in March 2013 the mine is expected to produce 300,000 carats or 1.5 million tons of diamonds per annum.
