Innopac

Innopac: (The Edge) Australian mining veteran Joseph Gutnick is injecting his diamond mine into the Co. in a deal he says will transform its fortunes as well as his own.Plans to use Innopac to acquire small diamond mines that are struggling to raise capital. Add that with a corporate base in SG, will not only enable grp to channel funds to these assets, but also connect the mines more effectively with diamond buyers and investors in Asia markets. Merlin diamonds owns one of Australia’s largest and once most productive mines, it was also here that Rio Tinto produced the largest diamond ever found in Aus, measuring 104.7 carats. Aim to get things going at Merin again, aided with funds from Innopac and plans to recommence commercial production by 3Q13. The target it to produce abt 250k carats of diamonds a yr by 2014. CEO of Innpac note that The Merlin project is now at an advanced exploration stage and reserves has been proven at 7.2m carats of diamonds, which should give a healthy SS for the next few yrs. Add that Merlin mines has an unusually high proportion of gem-qualit diamonds, 65% is gem quality and only35% is classified as industrial quality. Innopac note that the Co. may try to move up the value chain after acquiring Merlin Diiamonds, by sending rough diamonds for proper polishing and later auction them for a higher value to jewellers. Conclude that there is no diamond mining listed co. is SG, HK, Shanghai and even Tokyo and believe grp will do reasonable well over the nxt few yrs.