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Troy raises $40m for Karouni

Troy Resources managing director Martin Purvis. Picture: Steve Ferrier/The West Australian.

UPDATE 2.35pm: Troy Resources has announced plans to raise $40 million for the development of its Karouni gold project in Guyana.

The raising will be by way of a $35 million placement in two tranches and a $5 million share purchase plan, both priced at 40 cents a share.

The company said the funds would be used for an exploration campaign at Karouni, working capital for the ramp-up of the project and processing plant and to strengthen its balance sheet and pursue new opportunities.

Managing director and chief executive Martin Purvis said the company was pleased with the outcome of the placement.

"We thank our existing shareholders for their strong support and welcome a number of new, high quality institutions to the Troy register," he said.

"The placement puts Troy in a strong position to pursue its growth strategy."

Troy picked up the Karouni project when it acquired Azimuth Resources in 2013.

Shares in Troy were off four cents, or 8.99 per cent, to 40.5 cents at the close of trade after emerging from a trading halt this morning.