[www.inewsguyana.com] – Financing for the Karouni Project is now fully secured. Troy Resources Limited, the parent company of Troy Resources Guyana Inc. has announced that that it has signed a Mandate Letter and Term Sheet with Investec Bank for the provision of a Revolving Corporate Facility of up to A$100 million approximately US$92 million to advance the development of the Karouni project (formerly known as West Omai) in Guyana, refinance existing facilities and provide working capital.
Managing Director of Troy Resources Australia Paul Benson expressed his gratitude. He said, “We are very pleased to have agreed this facility with Investec who have been great supporters of Troy over the years. Of the newly credit approved A$70 million facility, A$40 million will replace the existing drawn facility, so essentially A$30 million is new debt capacity.”
Benson further explained that among expectations is to be able to fund construction of Karouni with this new capacity, existing cash reserves and operating cash flow.
Based on current forecasts and assumptions, the Troy Board believes the available financing facility, existing cash reserves of A$54.1 million and operating cash flow will be sufficient to bring the Karouni mine into production.
Meanwhile, CEO of Troy Resources Guyana Inc. Ken Nilsson has indicated that the total construction budget is approximately US$87 million and the construction phase is likely to see about 500 people on site reducing to a permanent work force of 250 – 300, when in operation.
According to him, advertisement for management and technical position two weeks ago has resulted in a very high response.
The Karouni Project recently completed the construction of an airstrip at the project site in region 7 and has started to mobilise equipment and personnel in order to initiate the larger construction phase.
The US$5million ball mill is being prepared to be shipped from overseas and should arrive in Guyana within a few weeks.
Troy Resources Guyana Inc. is a wholly owned subsidiary of Troy Resources Ltd, an Australian exploration and mining company since 1987 and operator of 2 mines in South America one in Brazil and the other in Argentina.