MUTINY Gold has obtained financial backing from a North American investor that will enable the Perth-based miner to develop its Deflector copper-gold deposit into a project in WA.
The company is in the final stages of negotiation for the US$2 million share placement, but noted in a statement filed with the ASX that its suitor wished to remain anonymous.
“We have had, and continue to have, strong support from the parties negotiating to provide funding for the Deflector project,” Mutiny managing director John Greeve said.
“These negotiations are now entering the final stages and completion will be a key milestone for the company in the development of this project.”
The placement was structured as a convertible loan, whereby the price of the conversion of debt into securities would be 95 per cent of the volume-weighted average closing price 10 days after the announcement of the package.
The funds have been received and shares will be issued under Mutiny’s existing 15 per cent capacity.
Deflector is currently classed as a deposit within Mutiny’s Gullewa project. It is highly prospective for gold and copper, with targets of between 1.65 million ounces and 2.5moz of gold and 40,000t to 80,000t of copper.
On November 30 2012, Mutiny announced it had signed an agreement with GR Engineering Services to begin design and engineering of Deflector’s processing facility. Production is targeted to begin by the fourth quarter of 2013.
Along with procuring funding, four things must happen to meet the target date: procurement of a ball mill; completion of an accommodation camp and mining contract tender processes; and near completion of all permitting requirements.
GR Engineering, which worked with Mutiny during its feasibility studies, was expected to begin work immediately. A three-stage mining program was planned to develop the site.
The first phase will target between 2 million tonnes and 4mt of mineralisation grading between 3 grams per tonne and 5g/t of gold and 0.5 per cent to 1 per cent copper, for an additional 250,000oz to 500,000oz of gold and 20,000t to 50,000t of copper.
The subsequent stages will target minerals between a depth of 120m and 500m, and then from 500m to 1000m. Feed from open pit and underground mining will be processed at Mutiny’s facility at Gullewa, which is 160km east of Geraldton in the South Murchison.
