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Troy Resources in limbo since worker’s South American site death

Mining
ASX:TRY
29 November 2019 16:41 (AEST)

A work site death that derailed operations for Troy Resources (TRY) has brewed further complications for the company still under voluntary suspension.

Earlier this year in October, a worker for Troy Resources passed away at a South American Guyana gold mine.

The worker died during a night shift in the early morning, falling from a three-metre embankment as it collapsed at the company’s “Karouni” project.

Days later the company entered a trading halt, and then a voluntary suspension which it has since not been lifted.

That same month saw a Guyana Minister within the Ministry of Social Protection cast a cease work order on Karouni. The gold explorer complied and ceased all mining activities.

Now in a state of limbo, Troy Resources is grappling with how to get the project off the ground since the explorer took workers off most general duties.

In a clarification to investors today, Troy Resources aired out a laundry list of ‘to-do’s’ before the Guyana Gold Mine can get back on its feet.

At top priority, Troy Resources will be seeking two separate regulatory approvals from the Government of Guyana — including a receipt of the title permit and a licence renewal.

But, perhaps the biggest hurdle for the company, will be sufficient funding.

Immediately the company is working to put forward a viable mine plan and budget that will approve work for the next 12 to 24 months of operations.

Restarting the South American gold operations will also require a large sum of funding, which the company has highlighted today.

“The board of Troy is keen to recommence operations at Karouni as soon as practicable,” Troy Resources stressed in its release to shareholders today.

“However, until such time as the outstanding matters […] definitive timing for a restart cannot be given.”

“Accordingly, Troy considers it appropriate that trading in its shares continue to be suspended.”

Shares in Troy Resources remain still at 11 cents each since the October freezing.

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