KordaMentha has been appointed as voluntary administrators to Lucapa Diamond Company, owner of the Merlin diamond mine in the Northern Territory.
Lucapa first acquired Merlin in 2021 for $8.5 million, marking the project as the second Australian prospect to join the company’s portfolio of two existing diamond projects in Africa, joining the Brooking project in Western Australia.
Since it took the reins, Lucapa has completed a scoping study that estimated a 14-year mine life and a 4.4 million-carat resource.
This was followed up by a feasibility study completed in 2023, which determined market conditions to be unfavourable and temporarily put Lucapa’s restart plans on hold.
While the company recently revealed plans to officially restart in 2025 under a new two-step plan, Lucapa has been placed under voluntary administration due to market conditions not improving.
KordaMentha administrators Richard Tucker and Paul Pracilio will now commence “an urgent assessment of the Group and the operations and will shortly be commencing a dual-track recapitalisation and sale process for the Group”.
In its March 2025 quarterly report, Lucapa detailed the results of a XciteTM electromagnetic survey (EM) survey executed at Merlin, the first modern EM flown over the site in 25 years.
“Two base metal targets and 16 kimberlite targets have been identified, with one of the base metal targets also having a coincident gravity high from a previous regional gravity survey,” Lucapa said in April.
Despite its current position, Tucker said opportunity still exists at Merlin.
“Lucapa’s management have developed a suitable pathway to development at Merlin … further upside exists through an exciting base metals opportunity on the Merlin tenements,” Tucker said to the ABC.
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