Troy Resources Limited
ASX : TRY
TSX : TRY

Troy Resources Limited

October 19, 2014 21:52 ET

Troy Signs Minerals Agreement for the Karouni Gold Project in Guyana

PERTH, WESTERN AUSTRALIA--(Marketwired - Oct. 19, 2014) -

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Gold producer Troy Resources Limited (ASX:TRY)(TSX:TRY) is pleased to announce that Executive Director of Project Development, Mr Ken Nilsson, has signed a Mineral Agreement with the Government of Guyana for the Karouni gold project (Karouni).

The Minerals Agreement details all fiscal, property, import-export procedures, taxation and other related conditions for the development and operation of Karouni. It represents a significant step forward in the development of Karouni and signifies the importance of the Project for Guyana.

The significant terms of the Agreement include:

  • Royalty of 5% at a gold price less than US$1,000/oz.;
  • Royalty of 8% at a gold price higher than US$1,000/oz.;
  • Corporate tax rate to be the lesser of the prevailing tax rate or 30%;
  • Ability to import goods and supplies free of applicable duties and taxes;
  • A partial excise tax of 10% on fuel, subject to a maximum cap of US10 cents per litre;
  • Exemption from capital gains tax on any transfers of controlling interests in mineral tenements between existing registered holders and the Company; and
  • Ability to remit all payments, including capital, any interest due or accrued and profits earned, without obligation to pay any fees, imposts, duties, taxes, administrative and other charges.

The Minerals Agreement is an extremely important milestone for the Company as it allows for the development of Karouni under a clear and stable fiscal regime.

Commenting on the event, Martin Purvis, CEO said: "The team in Guyana has done an outstanding job in finalising this Agreement with the Government in a very cordial fashion and we look forward to a mutually rewarding partnership that will benefit all stakeholders in the Karouni Project, for a long time to come."

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