(ASX: MYG) has now received a US$4 million first deposit on a non-interest bearing Commercial Agreement.
Importantly - the deposit is intended as the precursor to a wider Agreement which will supplement the project finance requirements for the development of the company?s high grade Deflector Gold Copper Deposit.
The impact for Mutiny is that the terms of the Agreement enables the company to continue escalating its project development - whilst concluding the ongoing Project Finance arrangements with Credit Suisse and other financial institutions.
Mutiny and Credit Suisse are now in negotiations for the Project Finance Loan for Deflector.
John Greeve, managing director of Mutiny, commented on the funding: ?This is a very positive move for Mutiny, as it moves to complete the financial platform for funding the development and mine operations at Deflector.
"This initial deposit is completely in line with our stated objective to minimise overly dilutive equity issues while progressing Deflector. The company continues to make extensive strides towards the total commercial funding package.?
Credit Suisse and Mutiny have already entered into an $11 million loan which enabled Mutiny to complete the acquisition of Deflector, conduct an extensive 15,000 metre drill program and advance its Feasibility Studies.
Bankable Feasibility Study delivers impressive metrics
A Bankable Feasibility Study has already identified that Deflector could earn an estimated Net Operating Cash Flow of $342 million - and that is just the start.
The key financial outcomes of the study provide key financial parameters of Deflector and they are impressive:
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- Net Operating Cash Flow after debt (project finance) and taxes of $171 million
- EBITDA of $323 million;
- Net Profit of $171 million;
- NPV at 8% of $103 million;
- Capital costs for plant construction of $66 million;
- Capital Costs for mine construction of $21 million; and
- IRR of 43%.
The study paves the way for the development of the project at an initial production rate of 55,000 gold ounces equivalent (annual range 44,600 in year one to 61,612 gold ounces equivalent).
There is a forecast low average operating cash cost of $621 per gold ounces equivalent and an initial mine life of 7 years, with a net operating cash flow of $324 million and internal rate of return of 43%, with a forecast net profit of $171 million and a net present value at 8% of $103 million.
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