Troy Resources has announced a $38 million capital raising to ramp-up development of its West Omai gold project in Guyana.
The raising, comprising a $28 million placement and a $10 million share purchase plan, will be priced at $1.25. Neither will be underwritten.
All directors have indicated their intention to apply for the full amount of $15,000 available to them as shareholders under the share purchase plan.
Troy said it anticipated that production could commence from West Omai as early as the second half of calendar year 2015.
Troy picked up the West Omai asset as part of its takeover of Azimuth Resources last year.
Chairman David Dix said the raising would allow Troy to accelerate development activities at West Omai.
"Following completion of the Preliminary Economic Assessment in January, we remain excited about the potential of this project to become our next operating mine," he said.
"This capital raising is part of the total financing package for West Omai. We are currently in discussions with Investec regarding a new debt facility, that, if secured for the facility size currently contemplated, together with the funds to be raised by the placement, would complete the funding requirements for West Omai.
"Importantly, the capital raising should also allow us to recommence brownfields exploration later in calendar year 2014 at both West Omai and Casposo."
Troy were in a trading halt, having shares last changed hands for $1.295.