Mutiny Gold has taken its interest in the Gullewa gold project to 70 per cent after raising $1.75 million through a share placement to New York-based investors.
The placement was priced at 9.6 cents per share, with subscribers receiving one option for every two shares.
Mutiny said the funds would be directed towards a $2 million payment needed to take its interest in Gullewa to 70 per cent.
Under a farm-in agreement between Mutiny and Redhill Resources, Mutiny was committed to pay $9 million in instalments for the 70 per cent stake in Gullewa by October 30.
Mutiny holds the right to acquire the remaining 30 per cent by paying an additional $4 million.
The Gullewa mine is located approximately 160 kilometres east of Geraldton.
Mutiny is targeting an initial production rate of 100,000 ounces of gold per annum from Gullewa.
Mutiny managing director John Greeve said the company was pleased with the support the share placement received.
“Completing a placement at a strong premium to our last traded share price is seen as a strong vote of confidence in Mutiny and the Gullewa project as we move ahead with developing our exciting Deflector deposit,” Mr Greeve said.
“While we held back some raising capacity in anticipation of an improvement in market conditions, continued capital market uncertainty has made it prudent to accept this strategic placement.
“Furthermore, this additional capital ensures that Mutiny can continue its exploration activities at Deflector with the next exploration program scheduled to commence later in October.”
At 1:27PM(WST) Mutiny's stock was up 2.2 per cent, to 9.1 cents.
