Troy Resources (ASX: TRY) has completed a $7.6m capital raising and 83 per cent of the new shared issues will go to Prudential-owned investment house M&G Investments.

M&G forked out nearly $6.3 million for a 12.6 per cent stake in the gold mining company, now becoming its largest shareholder. The previous largest holder, UK fund manager Ruffer, also participated in the placement.

Although a change in substantial interest notice had not been filed as of 10.30am today, it evidently bought enough to maintain its current 8.2 per cent share holding in the company.

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Troy chairman Peter Stern was delighted to welcome M&G as a shareholder, telling shareholders it was a positive sign for the company and its projects in Guyana.

“For Troy to have attracted an investor of the calibre of M&G as a shareholder is, we believe, a testament to the prospectivity of our exploration ground at Karouni and the future of the company.”

Following the wealth…

CEO Ken Nilsson said the funds raised would help the company advance its projects.

“The new funds will enable us to significantly ramp up the exploration effort at Ohio Creek and nearby exploration prospects,” he said.

“Indeed, we will soon have four drill rigs on site – two reverse circulation rigs, one diamond rig and one scout rig. Such activity should see resource modelling at Ohio Creek commence sooner rather than later.”

Guyana is wedged in between Brazil, Venezuela and Suriname and is heavily dependent on mining. Mining is about 10 per cent of GDP and GDP per capita is only US$4,000.

While many companies flocking there are searching for oil off its coast, there are several mining companies in Guyana, including Troy.

Earlier this year, the company announced positive assay results at its project including a result of 1m @ 564 g/t of gold (18.1 ounces per tonne).

Shares jumped 4 per cent to 10 cents at the start of trading on Tuesday.


In other ASX small cap corporate news today

A2B Australia (ASX: A2B), the company that was once known as Cabcharge, has seen two substantial holders pour in over $9 million in the last three months. Spheria Asset Management now has a 13.3 per cent stake in the company after making over $5.7 million in the last 2 months – topped off with a $2.7m buy last Thursday. Fellow asset manager Investors Mutual now hold 11.9 per cent after buying $3.4 million since late February.

The moves come a month after CEO Andrew Skelton declared the company’s goal to be, “Australia’s leading personal transport business”. Despite the rise of ride-sharing, the business is profitable with its most recent net profit being $5.5m and Skelton last month declared “demand for motorised trips” was under-serviced.
Neptune Marine Services’ (ASX: NMS) parent company MTQ Corporation (SGX: MTQ) announced its full year results today – as Singapore’s financial year is 1 April-31 March. It turned a S$5.5 million loss (January quarter 2018) into a S$0.9m profit (January quarter 2019). While MTQ still recorded a S$5.3 million loss after tax for the whole FY 2019, this was an improvement from the $17.8 million loss suffered in FY 2018.

While CEO Kuah Boon Wee acknowledged uncertainties, he mentioned his Australian-listed subsidiary in his commentary, saying: “The Group is continuing its efforts in strengthening the Neptune segment for the long term, exploring new partnerships.”