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Troy Resources (ASX:TRY) - Chairman, Peter Stern
Chairman, Peter Stern
Source: The Market Herald
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  • Troy Resources (TRY) enters a series of agreements that will, if approved by shareholders, achieve a recapitalisation
  • The recapitalisation consists of debt to equity conversions, a placement, a rights issue and a convertible note facility
  • Troy believes the recapitalisation will allow it to progress planning for the development of the Smarts Underground gold project in South America
  • The company hopes the money will provide sufficient working capital to allow its shares to recommence trading on the ASX
  • Shares in Troy last traded at 3.7 cents in August

Troy Resources (TRY) has entered a series of agreements that will, if approved by shareholders, lead to a recapitalisation.

Troy will seek shareholder approval to convert its current debt of roughly $18.7 million to equity and raise new funds totalling around $7.2 million.

Troy will also undertake a two-tranche placement to raise approximately $4.8 million through the issue of more than 217 million shares priced at 2.2 cents.

Following the placement, the company will undertake a non-renounceable rights issue to raise a maximum of $35 million.

Shareholders will be able to receive one new share for every one held with shares to be priced the same as the placement of 2.2 cents.

Some of the company’s major shareholders have agreed to participate in the placement and investment firm RiverFort has agreed to provide funding up to $5 million through a convertible note facility comprising an initial issue of $2 million in convertible notes with the ability for Troy to draw down a further $3 million.

Troy believes the recapitalisation will improve its financial status and allow it to progress planning for the development of the Smarts Underground gold project in South America.

The company also hopes it will provide sufficient working capital to allow its shares to recommence trading on the ASX.

Shares in Troy have been voluntarily suspended at 3.7 cents since August 31. The company has a $30 million market cap.

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