www.mutinygold.com.au
Mutiny Gold (ASX: MYG) is a diversified resource company focused on the exploration and development of the company's gold, copper and nickel tenements in Western Australia.
Mutiny’s main focus is the Deflector gold copper deposit which is located within the Gullewa project where gold production is forecast from 2012.
Mutiny Gold gains underwriting agreement for expiring options
Near term gold producer Mutiny Gold (ASX: MYG) has received a vote of confidence with an underwriter agreeing to underwrite the listed $0.10 options due to expire at 5.00pm on 30 June 2011.
Western Australia based Vennor Ross Holdings has agreed to underwrite up to a maximum of 5 million (ASX: MYGO) shortfall shares resulting from unexercised MYGO options.
John Greeve, managing director, said, “The funds from the exercise of the options will further strengthen the company’s balance sheet as we move towards gold production at Mutiny’s flagship Deflector project”.
Interestingly, Mutiny last traded at a premium to the option price at $0.11, and has not traded less than the June 2011 options exercise price since December 2010.
Vennor will be paid a 4% underwriting fee on the shortfall of any shares, and a 1% management fee of the underwritten amount.
Mutiny is a near term gold producer, with the Deflector deposit currently forecast to enter production in 2012.
In total, the Deflector deposit currently contains; 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.
The news flow for Mutiny will pick up over the next month, with results from infill drilling at Deflector expected within ten days, with more results from Spanish Galleon in two weeks, and the highly anticipated Pre-Feasibility Study in July 2011.
