Troy Resources confident of completing Azimuth takeover

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CONFERENCE CALLER: Acquisitive gold producer, Troy Resources (ASX: TRY), is confident its friendly takeover bid for fellow Perth-based gold explorer, Azimuth Resources (ASX: AZH), will create a sustainable mid-tier South American focused gold producer with considerable exploration and new project upside – despite current global conditions for gold.

Addressing the second day of the Paydirt 2013 Latin America Down Under resources conference in Sydney, Troy Resources managing director Paul Benson said the proposed larger entity would emerge from a successful takeover with three core business drivers going into the new financial year.

These would include the completion of a prefeasibility study by the end of the year on its West Omai gold project in Guyana, the commissioning of new ball mill infrastructure at the Casposo gold mine in Argentina and the commencement there of a high grade underground stoping operation, and ongoing gold production in Brazil.

“The takeover is designed to deliver an enlarged but profitable gold producer focused on high grade gold resources but an entity with a development pipeline and considerable exploration upside,” Benson said.
 
“The offer is scheduled to close on June 14th and if we achieve the 90 per cent minimum take-up, we would be confident of wrapping it all up by the end of the financial year.”

Troy announced its off-market takeover offer at the end of March. It proposes to acquire all of the issued shares of Azimuth in a share based transaction whereby Azimuth shareholders are offered one Troy share for every 5.695 Azimuth shares held.

Under the proposed terms, Troy shareholders will hold 55 per cent of the combined company.

Benson said the proposed acquisition of Azimuth complements Troy’s existing project pipeline and represents a long-term value proposition for both sets of shareholders.

 

Azimuth Resources projects are in a good neighbourhood. Source: Company website

 

Troy is dual-listed on the Australian and Toronto Stock Exchanges and has gold production at Andorinhas in Para State, Brazil and Casposo in San Juan Province, Argentina.

The company has a record of fast-track mine development, low cost operations, strategic acquisitions and exploration discoveries.

As of the market close on Wednesday night, Troy was already holding a 10.7 per cent stake in its takeover target.