[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.
The 14 miles issano community was formed over thirty years ago and was the main supply point for miners operating in surrounding areas. Many persons have made major investments to make this location a permanent business operation and homestead. It is disheartening that a decision was taken to grant a major mining license without consideration of the social impacts it will have on this community. Notwithstanding the many environmental and other hazards that that we already face and the many more we will be exposed to in the coming years.
Troy Recourses is viewed by the 14 mile Issano Community as an oppressor, the company has officiated several unofficial deliberations where the community was summoned to make proposals for compensation and representatives from the company kept rejecting those proposals. The company made an independent proposal in a proposed E.S.I.A. document they have now disregarded, leaving the residents despondent. The Guyana Geology and Mines Commission had issued an ultimatum to residents to vacate the location at one of the Troy Recourses meeting, this prompted legal action by the community to protect their homestead and businesses. Troy Resources have since refereed to this action by the community as hostile and has reacted with hostility and disregard for personal livelihood.
Troy Recourses of recent had re engaged the community in discussions and requested a proposal, a prerequisite to discussions was that legal proceedings be withdrawn, the community after withdrawing the legal proceeding, proposed that the company make settlement based on the company proposed ESIA proposal, to this the company informed the community after three weeks of deliberations that it is not going to pay any compensation. This is a very disturbing development since residents have waited in excess of two years to have this matter resolved.
It was established in the scoping sessions held in preparation for this investment that the use of cyanide in the mining operations makes it dangerous for the 14 mile community to remain. This along with other pollution from the mine site makes it necessary for Troy Resources to come to an amicable solution to this problem. Troy Recourses had proposed that it will assist businesses to relocate, however the proposed relocation site is not feasible to do business, does not have resources to mine and will prove to be a disaster. The Residents and Business owners are proposing that Troy Recourses honor the ESIA agreement that they proposed for resettlement and businesses will be able to divest, persons will be able to make a new start and restore their livelihoods.
It is with frustration that the 14 mile issano residents appeal with troy resources as it boast to be a good cooperate citizen in Guyana that it reconsider its position with dealing with this community as we are located in a direction that will take dust and other air borne pollutants from your mine site in our homes, that our potable water supplies and road acceses are impeded, that our businesses are made to suffer, that conflicts between staffers of the company and residents continue to escalate and armed security forces are seen by the residents as a treat to life and property. This situation does not offer for a good cooperate environment to conduct a mining operations and needs to be resolved.