Mutiny Gold (ASX: MYG) has completed a heavily oversubscribed A$9.7 million capital raising which will accelerate drilling at the highly prospective Deflector Gold Deposit.
Funds will also be allocated to make the next $4 million instalment for the Gullewa Project acquisition.
Mutiny placed 101 million shares at $0.096, together with one free attaching option for every two shares subscribed for exercisable at $0.14 by November 2013.
The company said the decision to proceed with the capital raising comes on the back of recent, highly encouraging exploration success at the Deflector deposit, and the subsequent decision to expand the scale of the Deflector Project.
John Greeve, managing director, said “This financing, coming on the back of our announcement that we are proposing to double our annual production rate at Deflector, confirms that Mutiny Gold is serious about its stated intention of becoming a significant, profitable, low cost gold producer in the very near future.
"We now look forward to completing the metallurgical testwork, drilling and DFS for Deflector and bringing the project into production in 2012.”
Last week Mutiny said that the company has resolved to expand the scope of the Feasibility Studies to incorporate a re-assessment of Deflector, which is now expected to support production in the order of 100,000 to 120,000 gold ounces annually when fully ramped up.
The Deflector statistics
Deflector already holds some resources in the higher confidence categories, with Measured 130,000 gold ounces and 12,000 tonnes of copper, and Indicated 105,000 gold ounces and 4,500 tonnes of copper.
The deposit contains a total resource of; 3.4 million tonnes at 5.4g/t gold, 4.7g/t silver and 0.8% copper for 590,000 gold ounces, 510,000 silver ounces and 25,500 tonnes of copper.
Mutiny has an exploration target of between 1.65 million to 2.5 million gold ounces.