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.
“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.