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Highlights
- - Larvotto secures pre-payment for advancing its Hillgrove Project.
- - Offtake deal ensures significant funding for exploration and feasibility studies.
- - Antimony and gold production poised to benefit from favorable market conditions.
Larvotto Resources (ASX:LRV) has secured a significant financial boost by receiving a pre-payment of approximately $6.2 million (US$4 million) under an offtake agreement. This agreement, signed with Wogen Resources and investment firm Xcelsior, focuses on the sale of antimony concentrate produced at the company’s Hillgrove Project in New South Wales over the next seven years.
The funding will play a key role in completing the ongoing Definitive Feasibility Study (DFS) at Hillgrove while also supporting exploration activities. Larvotto confirmed that a portion of the pre-payment, valued at US$600,000, will be issued as shares at a 75% premium to the company’s 15-day volume-weighted average price.
This milestone follows rigorous due diligence by Wogen and Xcelsior, which included site visits and assessments by independent experts. The pre-payment adds to the $21.3 million raised from a recent placement and option exercise, bringing Larvotto’s cash balance to $27.5 million. Another $16.7 million is expected from the placement's second tranche.
The Hillgrove Project is set to deliver both antimony and gold products to the market. Antimony concentrate will be sold to Wogen, a company specializing in critical metals for over five decades. Meanwhile, gold doré bars will be produced and sold directly to a refinery, with gold concentrate intended for sale through an offtake partner. Larvotto is currently exploring options to capitalize on strong gold concentrate market conditions and plans to update stakeholders on agreements in progress.
In addition to antimony and gold, the company aims to produce a tungsten by-product. Metallurgical testwork is scheduled to begin shortly, leveraging the existing tungsten mineralization at Hillgrove, which was previously mined.
The Hillgrove Project spans 254 square kilometers east of Armidale, New South Wales, and boasts a resource estimate of 1.7 million ounces at 7.4 grams per tonne of gold-equivalent. According to a Prefeasibility Study published earlier this year, annual production is targeted at 80,000 ounces.
Larvotto’s other assets include the Mt Isa Copper-Gold-Cobalt Project in Queensland, the Eyre Project in Western Australia, and a gold exploration project near Ohakuri in New Zealand’s North Island. With this strategic funding and the Hillgrove Project’s diverse resource potential, Larvotto continues its efforts toward achieving substantial progress across its portfolio.
