Mutiny Gold (ASX: MYG) has completed a A$5.19 million capital raising, with the company's recent spiking share price equating to strong investor demand.
Investors in the SPP portion of the capital raising will receive half of their allocations, due to strong demand.
The demand was driven by the SPP offer price of $0.08, yet Mutiny's share price spiked to $0.20 during the offer period on the back of some high grade gold and copper hits at the company's Deflector project.
In total, the SPP raised A$3.6 million by the issue of just under 45 million shares.
The other $1.6 million was through a placement, at the same $0.08 price.
Mutiny said $1.5 million of the capital raised will be used in January to fund the third instalment to Canadian listed ATW Gold Corp (TSX V: ATW) under the Gullewa Acquisition Agreement, with $1 million to complete the Deflector feasibility study.
Subject to feasibility, Mutiny Gold plans to commence production with an open pit mining operation at Deflector by mid-2012, with underground mining after two years.
The payback period from the open pit is estimated to be eight months.
Mutiny intendeds to process ore at the existing Gullewa Mill, following modifications to treat copper-gold ores.
The Deflector Gold-Copper deposit contains total resources of; 3.3 million tonnes at 5.4g/t gold and 0.76% copper for 560,000 gold ounces and 25,000 tonnes of copper.
Measured and indicated total 230,000 gold ounces and 17,000 tonnes of copper.