10/11/2011 - 10:33

Mutiny secures $11m loan for Gullewa

10/11/2011 - 10:33

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Mutiny secures $11m loan for Gullewa

Mutiny Gold says it has signed an $11 million project loan and hedging facility to fund the acquisition of the final 30 per cent stake in the Gullewa tenements and a feasibility study for its Deflector copper-gold project.

Mutiny announced today a financing agreement with international investment bank Credit Suisse, comprising an $11 million loan facility and a hedging facility of 50,000 ounces.

“The agreement with Credit Suisse represents the mezzanine funding as advised to shareholders in May 2011 and follows the successful $11.3 million capital raising completed on 9 September 2011,” managing director John Greeve said in a statement.

The definitive feasibility study is due to be completed in March next year.

Mr Greeve said the finance arrangement comes after an extensive review by Credit Suisse of the Deflector mine proposal and geological records.

“The board believes shareholders should be very positively reassured by this achievement following an extensive review by a leading international bank which specialises in gold project financing,” he said.

Mutiny’s Deflector gold-copper project is located around 160 kilometres east of Geraldton and contains identified mineral resources of 590,000 ounces gold and 25,000 tonnes of copper.

The company plans to commence open pit operations at Deflector by the fourth quarter of next year, followed by an underground mining program after two years.

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