Merlin Diamonds Limited (ASX:MED) announced a private placement of up to 4,392,054 convertible bonds at a price of AUD 1 per note for gross proceeds of up to AUD 4,392,054 on September 6, 2016. The company will issue 292,803,599 options in the transaction exercisable at AUD 0.015 per share for a period of 4 years. The transaction has been approved by the shareholders of the company. The notes will bear a fixed interest rate of 10% per annum which will be paid half yearly in arrears. The notes will have a maturity period of three years and are convertible into shares at a fixed conversion price of AUD 0.015 per share. The transaction will include participation from NRMZ Pty Ltd for 392,054 notes and 26,136,933 options, Chabad Properties Pty Ltd for 2,000,000 notes and 133,333,333 options.