Troy raises $10m for gold project

Gold producer Troy Resources has raised $10 million from investors to fund ongoing work at its Karouni project in Guyana.

The funds were raised by way of a placement of 50 million shares at 20 cents each to institutional and sophisticated investors in two tranches, with Troy directors also participating in the raising.

The company will use the funds to ramp up production at Karouni, which poured first gold late last month.

“The past six months have presented some significant challenges for Troy and within this environment we have struggled to meet some of the key targets we set ourselves at the beginning of the year,” chief executive Martin Purvis said.

“Commensurate with this situation, we are conscious of the fact that we have had to turn to our shareholders, in difficult markets, in order to help us overcome these obstacles and their impact on our balance sheet.”

In a statement, Troy said its Karouni plant was operating at a steady throughput rate of 100 dry tonnes per hour, and was on track to exceed the company’s target for the month of about 50 per cent of nominal capacity.

Troy shares were 10.6 per cent lower to 21 cents each at 10am.