Troy to Take Over Gold Producer Azimuth


Drill rig at the Hick Prospect, West Omai, Guyana project of Azimuth Resources. (Photo courtesy of Azimuth Resources)
Troy Resources and Azimuth Resources, both headquartered in Australia, have agreed to an all-share takeover of Azimuth by Troy. Troy has two producing gold oper-ations: the Casposo gold and silver mine in San Juan province, Argentina and the Andorinhas mine in Para state, Brazil. Azimuth has more than 8,700 km2of gold exploration permits and licenses in Guyana, including its advanced West Omai project.

The Casposo mine produced 70,989 oz of gold and 937,208 oz of silver during Troy’s 2011-2012 financial year ending June 30, 2012. The Andorinhas mine pro-duced 48,632 oz of gold during the year. Azimuth’s West Omai project has an inferred gold resource of 1.65 million oz at an average grade of more than 3 g/mt gold, and the company expects its engineering studies of the project to reach the pre-fea-sibility stage by the end of 2013.

The Troy offer values Azimuth at A$188 million and has been unanimously recom-mended by the directors and the CEO of Azimuth. Following implementation of the offer, current Troy and Azimuth sharehold-ers will hold 55% and 45%, respectively, of the enlarged Troy. Troy will remain head-quartered in Perth, Western Australia and will maintain its primary listing on the Australian Stock Exchange and its second-ary listing on the Toronto Stock Exchange.

Troy has agreed to provide Azimuth with bridge funding of up to A$10 million through a convertible note facility, with the proceeds to be used by Azimuth to advance infill drilling and provide working capital to progress engineering and other studies.

As featured in Womp 2013 Vol 05 - www.womp-int.com