Mutiny seeks $4.1m for Deflector

Perth-based junior Mutiny Gold has launched plans to raise $4.1 million towards drilling at its Deflector copper-gold project in the Mid West, including a $1.5 million share placement to preferred mining contractor Ausdrill.

Mutiny raised $2.5 million through the placement of about 93 million shares at an issue price of 2.7 cents per share, with Ausdrill subscribing for 60 per cent of the placement.

The gold miner has appointed Ausdrill as its preferred contractor for all current mining services offered in Australia.

Ausdrill’s alliance with Mutiny follows a similar deal struck with gold explorer Azumah Resources last month, with Ausdrill appointed preferred mining contractor in exchange for the provision of funding.

Mutiny also plans to raise a further $1.6 million through a non-renounceable entitlements offer on a one-for-10 basis.

The entitlements offer will be underwritten by Argonaut Capital, which was also lead manager to Mutiny’s share placement.

The additional revenue will help Mutiny fully fund its planned 2014 drilling of high grade, drill ready gold targets at the Deflector project.

Mutiny Gold acting chief executive officer Rowan Johnston said complete funding of the project would help it progress sooner.

“We can immediately move forward with our plans to expand Deflector’s high grade gold resource and move towards the development of an operating mine,” he said.

“Our ultimate strategy is to establish a low-cost, high-margin operation at what is one of the highest grade, undeveloped gold projects in Australia”.