Gold miner Troy Resources has secured $40 million in loans from financier Investec Bank to bolster its coffers as it works through its $188 million takeover of Azimuth Resources.
The loans will comprise a $20 million revolving corporate facility, which will be used for general working capital, and a $20 million revolving acquisition facility, with has a term of 18 months and will assist with costs associated with the Azimuth takeover.
The company said neither facility would require gold or silver price hedging, but a discretionary risk management facility would be available.
Troy Resources managing director Paul Benson said the company was pleased to have gained the support of Investec for its new finance facilities.
“These new facilities will not only give Troy tremendous flexibility over the next few years, they provide a degree of comfort and certainty which is invaluable in these volatile markets,” Mr Benson said in a statement.
In particular, the ALF is expected to allow us to accelerate activities at West Omai.
“It also puts us in a strong position to acquire a second hand plant suitable for the mine’s development which is part of Troy’s successful strategy for minimising mine development capital.”
At 11:50AM, WST, Troy Resources shares were steady at $1.81, having been lightly traded.
