Troy in halt on capital raising plans

Troy Resources is forging ahead with capital raising plans, today placing its shares in a trading halt despite protests from former chairman John Jones.

Troy notified the Australian stock exchange that it expects the halt to be lifted by Monday morning.

Last month Mr Jones, who is currently a non-executive director of Troy, launched a bid to remove chief executive Paul Benson, founding director Alan Naylor and non-executive Denis Clarke.

Mr Jones is against an equity raising, which Troy believes is the best funding option for the $US45 million Casposo gold project in Argentina.

Mr Jones, who holds a 9.63 per cent stake through Warrigal Pty Ltd, has previously said that debt funding was the best course of action as it would protect shareholders' interest.

Troy chairman John Dow earlier this month said the company had explored debt funding options, however decided it was not the best route.

Shares in Troy last traded at $2.47.