Troy board averts major, public fight

The Australian and South American gold producer Troy Resources will now not have to have the extraordinary meeting on November 16 that would have seen an already well publicised board room fight become a headline event.

PERTH  - 

Troy Resources NL (TSX & ASX: TRY) said Tuesday that events have moved on from a bid by a major shareholder to seek the removal of three directors, including the chief executive.

The company said that after discussions with John Jones, whose private company Warrigal Pty Ltd is the major shareholder, it was decided to cancel the meeting.

Jones had been seeking the removal of founding director Alan Naylor, chief executive Paul Benson and veteran director Dr Denis Clarke.

Troy said Naylor has indicated he won't be seeking re-election and Clarke said that to facilitate an agreement with Warrigal, he too would not be seeking re-election.

Robin Parish, a 5% beneficial shareholder in Troy, will be appointed to the board immediately and Paul Benson will step down as a director but remain as chief executive.

Troy said that John Jones confirmed that he will support the re-election of Troy chairman, John Dow, at the AGM on November 27.

Dow welcomed the resolution of issues raised by Warrigal and described the resolution of these issues as a win for the company's future.

"Having recently secured a fully underwritten entitlement issue to raise A$24.9 million (US$22.3 million), the company can focus its efforts on developing the Casposo gold-silver project in San Juan province, Argentina," Dow said.

"Importantly, the timeline for the development of Casposo remains on track for first production in the September quarter 2010," he added.

The Company has two producing gold operations; at Sandstone in Western Australia and the Andorinhas mine in Para State, Brazil.

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