PERTH (miningweekly.com) – Gold miner Troy Resources would raise up to A$35-million through a share placement, with the miner hoping to raise a further A$5-million in a share purchase plan (SPP).
ASX- and TSX-listed Troy at the end of last week announced the placement of 87.5-million new ordinary shares, at a price of 40c each, to qualified institutional and sophisticated investors.
The placement would be issued in two tranches, with the first consisting of 19-million shares to raise an initial A$7.6-million. The first tranche of the placement would be conducted under Troy’s current capacity, and would not require shareholder approval.
The second tranche of the placement would consist of a further 68.5-million shares, to raise some A$27.4-million, subject to shareholder approval at a June 4 general meeting.
In conjunction with the placement, the gold miner announced that eligible shareholders registered in Australia, New Zealand and the UK, would have the opportunity to subscribe for up to A$15 000 of new shares, also priced at 40c a share.
Troy MD and CEO Martin Pruvis said that the placement and SPP would put Troy in a strong position to pursue its growth strategies.
The funds raised would be applied towards a significant brownfield exploration programme at the Karouni gold project, in Guyana, and for working capital while Troy built up to full-scale mining operations and commissioning of the Karouni processing plant.
The opencut operation at Karouni, which would have a mine life of three years, would produce on average 101 000 oz/y of gold, barring the first year in which 104 400 oz was expected.