Diamond miner Lucapa Diamonds has struck an A$8.5-million deal to acquire the Merlin diamond project, in the Northern Territory, announcing plans to raise A$23-million to fund both the acquisition of the project and its advancement.

The Merlin project is home to Australia’s largest mined rough diamond on record, and has the potential to be the only producing diamond mine in Australia, following the close of Rio Tinto’s Argyle mine last year.