SYDNEY (miningweekly.com) – Dual-listed gold miner Troy Resources on Thursday told delegates at the Paydirt Latin America Downunder conference that its takeover of fellow gold producer Azimuth Resources would likely be completed by the end of June.
MD Paul Benson said the proposed larger entity would emerge from a successful takeover, with three core business drivers going into the new financial year.
These would include the completion of a prefeasibility study by the end of the year on its West Omai gold project in Guyana, the commissioning of new ball mill infrastructure at the Casposo gold mine, in Argentina, the start of a high-grade underground stoping operation at Casposo, and ongoing gold production in Brazil.
“The takeover is designed to deliver an enlarged but profitable gold producer focused on high-grade gold resources, but an entity with a development pipeline and considerable exploration upside,” Benson said.
“The offer is scheduled to close on June 14, and if we achieve the 90% minimum take-up, we would be confident of wrapping it all up by the end of the financial year.”
Troy announced its off-market takeover offer at the end of March, to acquire Azimuth in a share trade, offering one Troy share for every 5.695 Azimuth shares held.
Under the proposed terms, Troy shareholders will hold 55% of the combined company.
Benson said the proposed acquisition of Azimuth complemented Troy’s existing project pipeline and represented a long-term value proposition for both sets of shareholders.