Mutiny Gold's (ASX: MYG) recent positive studies on its Deflector gold-copper and Rocksteady Iron projects in Western Australia have led existing and new investors to oversubscribe for its $800,000 option issue.
The company had in August offered investors up to 80 million options at an issue price of $0.01 each and exercisable at $0.05 each.
It has received applications for 84,618,116 of the new option class and the directors have resolved to place the oversubscribed portion under its 15% placement capacity.
Proceeds from the raising will fund further development of Deflector.
The company had recently released an updated Definitive Feasibility Study for the Deflector project that confirms the project is robust and highly profitable in today's market conditions.
With average cash costs of A$638 per ounce of gold equivalent with all-in sustaining costs of A$801 per gold equivalent ounce and start-up capital costs of about $62 million while maintaining production output, Deflector appears to be one of the lowest cost potential (non-producing) gold mines in Australia or Africa.
Likewise, a scoping study on Rocksteady has demonstrated it can be developed at likely low capital and low operating costs.
Rocksteady has an initial Inferred Resource of 650,000 tonnes at 54% Fe, enough for a starter project with scope for expansion.
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