· Following a competitive process, Troy Resources NL has signed a mandate with Investec Bank (
· With existing cash reserves, including the recent equity raising, the Casposo gold and silver project in
· The Facility has two Tranches. Tranche A of A$15m will fund construction of Casposo. Tranche B of A$10m is available for a combination of Casposo development and for general corporate purposes. The intention is that these funds will primarily be used for an accelerated exploration program of the Casposo and Castaño Nuevo leases to build the Company’s gold and silver Reserves and Resources.
· The facility requires no gold or silver price hedging leaving
· The facility includes the issuance of options to Investec with an exercise price at a 30% premium to the
· Loan Maturity is 3 years.
Tranche B for the amount of A$10m is subject to Investec’s due diligence review and final credit approval which is expected in May 2010. For clarity, the availability of Tranche A is not impacted by the availability of Tranche B. Although the funding from Tranche B is intended for general corporate purposes it is expected that it will primarily be directed to funding an accelerated exploration program of the Casposo and Castaño Nuevo leases to build the Company’s gold and silver Reserves and Resources, with a view to extending the Casposo mine life.
Part of the cost of the loan facility includes the granting of call options over
· Tranche A exercise price - $3.15/share
· Tranche B exercise price - to be calculated on the date Investec advises
The term of the loan is 3 years and no mandatory gold or silver price hedging is involved. Finalisation of the loan is subject to standard conditions precedent and completion of documentation.
The acceptance of Investec’s offer followed a rigorous and competitive selection process undertaken with the assistance of Optimum Capital.
Commenting on today’s announcement,
“Importantly the facility includes a second Tranche of A$10m (Tranche B) that puts
“Based on the significant free cashflow forecast from Casposo, our expectation is that any debt drawn-down will be repaid expeditiously. Any repayments ahead of schedule can be redrawn for corporate acquisitions or project developments.
“We reached agreement with Investec following an exhaustive and rigorous competitive process. Of importance for