Cobra buys into Mutiny's White Well

Mutiny Gold has announced an alliance agreement with Cobra Mining which it says will fast-track the development of the White Well gold project near Cue.

Mutiny said today it had entered a “tribute mining agreement” with Cobra, which will see Cobra fund and conduct mining operations for a 70 per cent share of the profits.

Mutiny will hold a  21 per cent stake in White Well, with joint venture partners Lee/Daxon receiving 9 per cent.

Cobra has until December 31 to complete a mine study and declare its final investment decision.

Managing director John Greeve said the agreement was a win-win situation for both Mutiny and Cobra.

“White well is not part of Mutiny’s Gullewa gold tenement region, and this agreement enables Mutiny to maintain full focus on Deflector,” Mr Greeve said in a statement.

“It also provides Mutiny and Cobra with a chance to move quickly to commercialise the total estimated White Well resources of 113,000 ounces of gold at a time of record gold prices.

At 10:23AM (WST) Mutiny’s stock had dipped 2.6 per cent, to 7.3 cents.