Join our daily newsletter At The Bell to receive exclusive market insights
- Junior miner Troy Resources (TRY) has tapped institutions and sophisticated investors for $15 million through a share placement
- Troy will raise the funds by placing roughly 125 million new shares at 12 cents a pop
- The raise comes soon after Troy released some stellar drilling results from its Smarts Underground project in Guyana, South America
- Now, the new funds will be used to take on some more drilling at smarts and some major regional drill programs across Troy’s South American portfolio
- Shares in the company are trading 10 per cent lower this afternoon, edging towards the placement price and worth 14 cents each
Troy Resources (TRY) has tapped institutions and sophisticated investors for $15 million through a share placement.
The fresh funding will go towards some important work at the company’s Smarts Underground prospect in Guyana, South America, and take on regional exploration programs across its drilling portfolio.
The funds will be raised by placing 125 million new shares at 12 cents each. This will be done in two tranches.
The first tranche will raise 12 million and is slated to settle by the end of October. The second tranche will raise the remaining $3 million but only subject to shareholder approval at Troy’s upcoming December Annual General Meeting (AGM).
Troy CEO and Managing Director Ken Nillson said the company is “delighted” to have received commitments for this capital raise during an exciting time for Troy.
“The new funds will enable us to expand the drilling campaign at Smarts Underground and ramp-up the exploration effort both near-mine and across some high quality regional targets,” Ken said.
The raise comes soon after Troy shares soared on the back of stellar drilling results from Smarts.
“Following the recent high-grade intercepts, we are excited to be progressing towards a maiden ore reserve at Smarts Underground later this year and uncover the enormous exploration potential which the recent drill results have confirmed,” Ken said.
Big plans
On top of being used to finalise the Smarts ore reserve, which is due this quarter, the new cash will help Troy expand its drilling campaign at smarts to follow up on the recent results in the area.
On top of this, the funds will support a 30,000-metre campaign of reserve definition drilling across Troy’s Ohio Creek and Gold Star prospects, also in Guyana.
Finally, the funds will go towards roughly 20,000 metres of drilling across more regional priority drill targets in the area.
Shares in the company are trading lower today and edging towards the capital raise price. At 3:06 pm AEDT, shares are down 10 per cent and worth 14 cents each.
