Aussie firm secures financing for large scale gold mine

April 26, 2014, By KNews, Filed Under News, Source

Another large scale gold mining operation is set to move into construction mode with financing already secured.

According to Australia-owned, Troy Resources Limited, it has received financing for its Karouni Project.

The project is located in an area formerly known as West Omai, in Region Seven.

Managing Director of Troy Resources Australia, Paul Benson

Troy Resources, through its local operating company, Troy Resources Guyana Inc., disclosed that it has signed a Mandate Letter and Term Sheet with Investec Bank for the provision of Aus$100 million (US$92M).

Managing Director of Troy Resources Australia, Paul Benson, said that a portion of the newly approved credit will partially fund the development of the mine.

“Based on current forecasts and assumptions, the Troy Board believes that the available financing facility, existing cash reserves of Aus$54.1M will be sufficient to bring the Karouni mine into production.”

CEO of Troy Resources Guyana Inc., Ken Nilsson, has indicated that the total construction budget is approximately US$87M with the construction phase likely to see about 500 people on site.

This will reduce to a permanent work force of some 300, when in operation.
“Advertisement for management and technical positions two weeks ago has resulted in a very high response which is pleasing since the company’s aim in the medium to longer term is to have a minimum of expatriates working in Guyana.”

The Karouni Project recently completed the construction of an airstrip at the project site in Region Seven and has started to mobilise equipment and personnel in order to initiate the larger construction phase.

“The US$5M ball mill is being prepared to be shipped from overseas and should arrive in Guyana within a few weeks.”

The Aussie company has operations at Andorinhas in Para State, Brazil and Casposo in San Juan Province, Argentina.

Since the departure of large scale Omai Gold Mines a few years ago, Guyana has been without any facility of that class.

But high prices for gold have been spurring massive investments in the mining sector with the shiny metal again last year being the biggest foreign currency earner of the economy.

CEO of Troy Resources Guyana Inc., Ken Nilsson

There are a number of other large scale mines in development including the Canadian-owned Guyana Goldfields operation at Aurora, Region Seven.