GR Engineering has joined the share register of one of its major clients, Mutiny Gold, receiving more than $748,000 worth of stock as consideration for engineering works.
The shares were issued as payment for preliminary design work completed on Mutiny’s deflector copper-gold processing facility in the Murchison.
Mutiny issued more than 21 million new shares to GR, priced at 3.56 cents each.
GR has been providing engineering services for Mutiny at the Deflector project since November 2012.
Mutiny is targeting initial annual production of 68,000 ounces of gold from Deflector, rampuing up to 88,000oz/pa after an upgrade of the process plant and mill is completed.
Cash costs from a feasibility study released in July were estimated to come in around $617/oz.
An update to the feasibility study released last month cut the project’s start-up costs from $91 million to $62 million, with no reduction in production volumes.
Mutiny said today it was in a position to commence equipment procurement once it secures a project financing agreement for the Deflector operation.
At close of trade today, GR Engineering shares were down 6.5 per cent at 57.5 cents, while Mutiny’s stock gained 2.17 per cent, at 4.7 cents.