Troy Resources NL
ASX : TRY

Troy Resources NL

June 23, 2005 03:32 ET

Troy Purchases Royalties at Sandstone

WEST PERTH, AUSTRALIA--(CCNMatthews - June 23, 2005) - Troy Resources NL ("Troy") (ASX:TRY) has negotiated the purchase of production royalties held by Croesus Mining NL ("Croesus") and Vulcan Resources Limited ("Vulcan") over Troy owned mineral tenements at Sandstone. The royalties cover tenements E57/422, E57/424, M57/529 and M57/530 which include the Lord Henry and Lord Nelson gold deposits ("Lords") where Troy commenced mining in late April this year.

The royalty held by Croesus is for an amount of $10 per ounce of gold and is being purchased for an amount of A$1,100,000 plus the issue of 200,000 fully paid ordinary shares in Troy.

The royalty held by Vulcan covers the same tenements and is for an amount of $5 per ounce of gold capped at a maximum payment of $250,000 and has been purchased for A$232,000 cash.

These purchases have eliminated all the private royalty interests covering the Lords development and the surrounding tenements. This will allow Troy greater operational flexibility in its milling operation through the ability to blend ore from any future development of satellite orebodies owned by Troy in the Sandstone area with ore from the Lords mining operation.

J L C Jones

Executive Chairman

Contact Information

  • Troy Resources NL
    J L C Jones
    Executive Chairman
    (61 8) 9481 1277
    (61 8) 9321 8237 (FAX)
    or
    Troy Resources NL
    K K Nilsson
    Managing Director
    (61 8) 9481 1277
    (61 8) 9321 8237 (FAX)
    troy@troyres.com.au
    www.try.com.au