Mutiny raises $9.7m for Gellewa project

Mutiny Gold has successfully raised $9.7 million to acquire the Gullewa gold project in the Mid West and to expand exploration programs at the development's Deflector deposit.

Mutiny told the ASX today it had raised the $9.7 million through a 9.6 cents per share placement which included one free attaching option for every two shares purchased.

The company first announced it would acquire the Gullewa project in April.

The deposit contains existing resources of 650,000 ounces gold and around 25,000 tonnes of copper.

Mutiny managing director John Greeve said he was delighted by the support for the capital raising, which closed oversubscribed.

"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 gold producer in the very near future," he said.

"We now look forward to completing the metallurgical testwork, drilling and DFS for deflector and bringing the project into production in 2012."

At 1:51PM (WST) Mutiny's stock had dropped 4 per cent, to 12 cents.