What is Troy (ASX:TRY) doing to fast-tack development of Smarts Underground?

Be the First to Comment Read
Sponsored

What is Troy (ASX:TRY) doing to fast-tack development of Smarts Underground?

 What is Troy (ASX:TRY) doing to fast-tack development of Smarts Underground?
Image source: Company website

Highlights

  • Troy is on track to develop the Smarts Underground deposit on its Karouni Gold Project.
  • The Company is in the process of capital raising through various financial instruments that will lead to recapitalisation.
  • The fundraise program needs shareholders’ approval and will place the Company on a firm financial footing.

Troy Resources Limited (ASX:TRY) is gearing up to advance on the Smarts Underground deposit on the Karouni Gold Project. Troy is planning an extensive fund-raising plan to fast-track its development activities on the deposit.

The Company, in its recent update, informed the market that Troy has entered into a series of agreements to achieve a recapitalisation of the Company. The recapitalisation plan will still need shareholders’ approval to take its final shape.

Related read: Troy Resources (ASX:TRY) to recapitalize to advance on Smarts Underground deposit

The fund-raising initiatives would allow Troy to convert its debt of AU$18.7 million into equity and will also help to raise an additional AU$7.2 million. 

Apart from the debt-to-equity conversion and fundraise through placement, Troy is also planning to provide an opportunity to its existing shareholders to participate in a 1 for 1 rights issue at an issue price of AU$0.022 per share.

The company intends to channelise AU$6.8 million towards the development planning of the Smarts Underground deposit as well as operational expenditure and other corporate expenses.

Data source: Company update, 5 January 2022

Related read: A sneak peek into Troy Resources (ASX:TRY) golden history

Fund to be utilised on development planning of Smarts Underground

Troy has delineated 1,082,000 tonnes @ 2.6g/t Au for 89,400 ounces or Ore Reserve at Smarts Underground. The development of Smarts underground will be first of its kind in Guyana as there have been no underground mining projects so far in the country. Troy has already secured all major approvals to proceed with the development.

Troy estimates that it would cost around US$7 million for the first phase of the development program. Out of US$7 million, approximately US$3.7 million would be required for creating access to the upper stopping blocks. Another US$2 to 4 million would be required for the construction of the portal and putting up initial infrastructure.

All these cost estimates have been derived from the results of the pre-feasibility study undertaken on the project.

Related read: Troy names new interim CEO; here’s what his top priorities look like

Karouni Mill to undergo care and maintenance

Troy has decided to put Karouni Mill under care and maintenance for the time Smarts Underground does not reach the the final investment decision (FID) stage. The management has allocated funds for the maintenance works, as shown in the above table.

 View of Karouni Mill (Image source: Company website)

Apart from this, The Company is in talks with other gold miners in the region who can provide toll treating opportunities. Additionally, Troy will continue its general exploration activities over the project area.

Relisting of securities on ASX

A part of the capital raised from the proposed recapitalisation initiative would be used for paying off all ASX fees, including any listing fee/outstanding fee. The management is engaging with the Australian Securities Exchange to satisfy listing requirements and to recommence trading.

Related read: Troy Resources (ASX:TRY) gets approval for Smarts Underground, shares soar ~15%

Disclaimer

Speak your Mind

Featured Articles

Ad
kalkine logo

GET A FREE STOCK REPORT

Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK