PERTH (miningweekly.com) – Dual-listed gold miner Troy Resources has moved a step closer to production at its Karouni gold project, in Guyana, after signing a minerals agreement with the state government.
The minerals agreement detailed the fiscal, property, import/export procedures, taxation and other conditions for the development and operation of Karouni.
Troy told shareholders on Monday that the agreement included a 5% royalty at a gold price of less than $1 000/oz, and a royalty of 8% on a gold price higher than $1 000/oz.
The corporate tax rate would be the lesser of the prevailing tax rate or 30%, while the agreement also covered Troy’s ability to import goods and supplies free of applicable duties and taxes. Furthermore, the agreement included a partial excise tax of 10% on fuel, subject to a maximum cap of 10 c/l, the exemption from capital gains tax on any transfers of controlling interests in mineral tenements between existing registered holders, and the ability to remit all payments without the obligation to pay any fees.
“The team in Guyana has done an outstanding job in finalising this agreement with the government in a very cordial fashion and we look forward to a mutually rewarding partnership that will benefit all stakeholders in the Karouni project, for a long time to come,” said Troy CEO Martin Purvis.
In April, Troy said to enable production to be brought forward to the first half of 2015, the initial prefeasibility would consider only the openpits, while a prefeasibility study for the underground operation would be completed at a later date.
The opencut operation, which would have a mine life of a three years, would produce on average 101 000 oz/y of gold, barring the first year in which 104 400 oz is expected.