Troy Resources chairman John Dow has fired the side's first shot at dissident shareholder, former chairman John Jones, who is trying to stop a dilutive capital raising.
Last week, Mr Jones launched a bid to remove chief executive Paul Benson, founding director Alan Naylor and long-time director Denis Clarke.
Mr Jones has called for all three directors to be replaced by Peter Stern, Robin Parsh and Andrew Barclay.
In an address to shareholders today, Mr Dow said the requisition came at a time when the company was finalising its evaluation of a range of capital raising alternatives for the development of the Caspaso gold project in Argentina.
The capital cost for the project is pegged at $US45 million, 47 per cent below an initial estimate. The lower cost was reflected in the utilization of an existing near new plant and bringing the project management in-house.
First gold production is planned for the September quarter of 2010.
It is understood that Mr Jones is against a capital raising as it would dilute his substantial shareholding in the company.
"The Board is continuing to work through the best ways to fund Casposo. It is anticipated that funding will now be required by the end of 2009, in light of, among other things, advantageous pricing of certain capital items if they are acquired now," Mr Dow said in a statement.
"As a first step in obtaining that funding, the Company's partly paid shares have been called, to raise $1,946,418 by 23 October 2009.
"The Board continues to evaluate the best way to raise the balance of the capital required to ensure timely completion of construction and will keep shareholders informed."