Welcome To the Troy Resources New HUB On AGORACOM

“To position Troy as a highly profitable mid-tier gold producer with a portfolio of quality long-life assets within prospective regions providing further exploration growth.”

Message: Troy to Raise A$24.9M From Underwritten Entitlement Issue

Troy to Raise A$24.9M From Underwritten Entitlement Issue

posted on Nov 01, 2009 05:55PM

Troy to Raise A$24.9M From Underwritten Entitlement Issue

PERTH, WESTERN AUSTRALIA--(Marketwire - Oct. 29, 2009) - 


Growing junior gold producer, Troy Resources NL (Troy or the Company)
(TSX:TRY)(ASX:TRY) is pleased to announce a capital raising of $24.9
million via an underwritten pro-rata, non-renounceable entitlement issue
(Entitlement Issue) to maintain project development momentum of the
Company's Casposo gold-silver project.

Troy Chairman, John Dow, said, "This fully underwritten issue allows the
Company to continue new mine construction at Casposo with certainty. It
also provides Troy shareholders with an opportunity to maintain their
shareholding in the Company. I am also pleased to report to shareholders
that this Entitlement Issue has the unanimous support of the full Troy

Entitlement Issue

Troy intends to offer existing shareholders the opportunity to subscribe
for fully paid ordinary shares (New Shares) at A$2.00 per New Share
pursuant to a 1 for 6 pro-rata non-renounceable Entitlement Issue to raise
A$24.9 million. The Company has reserved the right to make a PRIVATE
placement of securities to certain jurisdictions on similar terms to the
Entitlement Issue.

The Entitlement Issue is fully underwritten by Euroz Securities Limited,
Argonaut Capital Limited and Bell Potter Securities Limited. The issue
price of a New Share represents a 19% discount to Troy's last traded Share
price prior to announcement of the capital raising and a 17% discount to
the theoretical ex-rights price.

All directors of Troy have confirmed their intention to participate in the
Entitlement Issue.

Under the Entitlement Issue, Troy shareholders as at the record date will
be able to subscribe for New Shares at an issue price of A$2.00 per New
Share on the basis of 1 New Shares for every 6 Shares held at the record

Use of Proceeds

The proceeds of the Entitlement Issue will be fully applied to construction
activities at the Casposo Project in Argentina.

Indicative Timetable

The timetable is currently being finalised with the details, including the
record date, expected to be announced in approximately one week's time when
it is expected the Entitlement Offer documents are lodged with ASX.


The rights to subscribe for shares of Troy at A$2.00 per share pursuant to
the Entitlement Issue will not be registered under the United States
Securities Act of 1933 Act, as amended and may not be offered or sold in
the United States or to, or for the account or benefit of, US persons.

The listing of the New Shares on the Toronto Stock Exchange (TSX) remains
subject to the approval of the TSX.


Troy Resources (TSX:TRY)(ASX:TRY) is a dividend-paying junior gold
producer, with a clear growth strategy. The Company has two producing gold
operations; at Sandstone in Western Australia and the Andorinhas Mine in
Para State, Brazil and a gold silver development project, Casposo, in San
Juan province, Argentina.

Troy has an experienced Board and management team with a portfolio of
successful, fast-track mine development and low-cost operations.

Troy has an annual exploration budget of $5 million and a proven track
record in exploration discoveries and strategic acquisitions.

Troy is currently focused on developing its Casposo Project, which it
acquired in May 2009. With the acquisition and development of Casposo, Troy
is entering a renewed growth phase which will again lift the Company's
annual gold production above 100,000 ounces of gold per annum.

The Company maintains a robust balance sheet, and its current assets are
forecast to continue to generate strong cash flow. Troy's gold production
is unhedged; allowing its shareholders access to the full benefit of
current and future gold price upside.

With the recent Casposo acquisition, Troy is positioned to continue its
path of strong growth and profitable operations and is well on track to
achieve its vision of becoming a highly profitable mid-tier gold producer
with a portfolio of quality long-life assets.

Troy is a responsible corporate citizen, committed to the best practice of
health and safety, environmental stewardship and social responsibility.

To view the Project Locations, please visit the following link:

ABN 33 006 243 750



Troy Resources NL
Paul Benson
Chief Executive Officer
(61 8) 9481 1277
[email protected]
Purple Communications
Annette Ellis / Warrick Hazeldine
Media Relations
(61 8) 61 8 6314 6300
[email protected]

New Message
Please login to post a reply