Canadian financer boosts Mutiny Gold share register

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THE DRILL SERGEANT: Mutiny Gold (ASX: MYG) has welcomed Canadian-based Sandstorm Gold to the company’s share register.

Mutiny has issued Sandstorm 22 million shares in respect of a USD$2 million converting loan provided to the company in November last year.

Mutiny Gold said the issue of shares recognised a critical milestone in the development of the Deflector gold-copper project in Western Australia.

“At a time when global financial markets were facing historically difficult times and project funding had almost dried up for small miners, to have put together this deal with Sandstorm Gold Ltd was a major success story for Mutiny Gold and its supporters,” Mutiny Gold managing director John Greeve said in the company’s announcement the Australian Securities Exchange.

Mutiny Gold was able to reach agreement with Sandstorm Gold for the Canadian company’s first Metals Purchase Agreement (‘MPA’) in Australia.

According to Mutiny Gold the US$43 million ($41 million) MPA with Sandstorm will fund a significant portion of the Deflector capital costs.

This will, in turn, allow Mutiny to instigate a number of key financing aspects for Deflector’s development as well as providing additional certainty to the company’s bankers.

Mutiny’s principal lender Credit Suisse, which has an existing $11 million loan facility, is currently concluding the provision of approximately A$50 million in funding.

This funding will result in Credit Suisse providing debt finance of $25 million, with the remainder to be provided by a leading Australian bank as part of the proposed total $102 million Deflector funding package.

“Tied in with the quality drilling results we achieved last year, the subsequent significant increase to our JORC figures, the very robust outcomes of the Deflector Definitive Feasibility Study (DFS), Mutiny Gold is well on track to achieve a number of major goals this year on the way to commercialising what is a very valuable asset at Deflector and then stepping up our plan to become a major new mining house with a number of nearby developments,” Greeve said.