PERTH (miningweekly.com) – ASX-listed Troy Resources will raise A$15-million through a two tranche share placement to fund exploration work in Guyana.
The company on Monday announced that 100-million new shares, at a price of 12c each, would be issued under the company’s existing placement capacity, to raise an initial A$12-million.
A further 25-million shares, also priced at 12c each, would be raised subject to shareholder approval at an annual general meeting scheduled for early December.
The proceeds from the placement will be used to expand drilling at the Smarts underground operation, completing the Smarts underground mining study and the delivery of a maiden ore reserve in the fourth quarter of this year, and to target near-mine exploration with a 30 000 m drilling campaign across the Ohio Creek and Gold Star resources.
Troy would also accelerate regional exploration to test multiple high priority drill targets, with some 20 000 m of drilling planned at Gem Creek, Upper Itaki, Kaburi Hills, Ohio Creek East, Singh Link and Whitehall.
“We are delighted to have successfully completed this capital raise at what is an exciting time for the company and our shareholders. The new funds will enable us to expand the drilling campaign at Smarts underground, and ramp up the exploration effort both near-mine and across some high quality regional targets,” said Troy CEO and MD Ken Nilsson.
“Following the recent high grade intercepts, we are excited to be progressing towards a maiden ore reserve at Smarts underground later this year, and uncover the enormous exploration potential which the recent drill results have confirmed.”