Mutiny Gold Limited (ASX:MYG)
has booked an $11 million profit following a strategic transaction in the gold market of the London Metals Exchange.
The gold explorer purchased 50 thousand ounces of gold at an average price of $1,491 per ounce, in conjunction with adviser Noahs Rule and a $75 million gold buying facility provided by Credit Suisse.
The strategic acquisition will allow Mutiny to deliver the recently acquired gold in to an existing hedge fund, resulting in a total gain of $11 million.
The profits will be used to repay an existing $11 million short term Credit Suisse loan.
Mutiny says it took advantage of recent weakness in gold prices in executing the transaction.
Mutiny Gold booked a net loss of $429,000 in the first half of fiscal 2013.