Troy finalises $40m Investec loan

Troy Resources has finalised a $40 million financing facility to boost working capital as it progresses a $188 million merger with Azimuth Resources.

The first $20 million tranche of the facility, with financier Investec Bank, will be available for drawdown immediately.

Troy initially announced the loan in April, just after it announced its 'merger of equals' with Azimuth.

Investec has previously provided Troy with a $35 million loan which was used on the construction of the Casposo gold mine in Brazil in 2010.

Managing director Paul Benson said the new facility would give the company "tremendous flexibility".

"They provide a degree of comfort and certainty which is invaluable in these volatile markets," Mr Benson said.

At close of trade today, Troy Resources shares were 3.2 per cent higher, at $1.58.