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Highlights
- Larvotto Resources (LRV) signs an offtake agreement for antimony concentrate from the Hillgrove Project.
- The agreement is supported by a significant prepayment facility to enhance ongoing development and exploration.
- Hillgrove Project targets both antimony and gold, with promising mineral resource estimates.
Larvotto Resources (ASX:LRV) has announced a binding offtake agreement with Wogen Resources for the sale of antimony concentrate from the Hillgrove Project in New South Wales. This development marks a significant step forward for the company as it moves closer to production at its flagship project.
Wogen Resources, a globally recognized commodity trading house established in 1972, brings extensive expertise in the antimony market. This partnership aligns with Larvotto’s strategic objectives, strengthening the company’s position in the global antimony supply chain.
To support this agreement, Larvotto has secured a prepayment facility of approximately $6.15 million (US$4 million) through investment manager Xcelsior. This facility will aid in the completion of the Definitive Feasibility Study, expected in early 2025, while also advancing exploration activities to uncover the full potential of the Hillgrove Project’s mineralization.
The Hillgrove Project, which holds a mineral resource estimate of 1.7 million ounces of gold-equivalent at an impressive grade of 7.4 grams per tonne gold-equivalent, is a key focus for Larvotto. The project’s August 2024 Prefeasibility Study highlighted robust financial metrics, forecasting production of over 600,000 ounces of gold-equivalent.
Managing Director Ron Heeks expressed the importance of the agreement as a milestone in the Hillgrove Project’s progress. Heeks emphasized that the due diligence process undertaken by Wogen Resources and Xcelsior, which included on-site evaluations by industry experts, underscores the quality and potential of the project.
The company is also exploring opportunities to finalize a gold concentrate offtake agreement, with discussions underway among multiple counterparties. According to Heeks, updates on this aspect of the project will be shared as developments occur.
The recent addition of funding through the prepayment facility, coupled with $8 million raised from option conversions since the last quarterly report, positions Larvotto strongly to enhance exploration efforts. The company aims to demonstrate the substantial upside potential of the Hillgrove Project.
Larvotto Resources, with a market capitalization exceeding $222 million, remains focused on its goal of developing a world-class project. Its flagship Hillgrove Project continues to advance with a dual emphasis on gold and antimony, solidifying its place as a significant player in the resource sector.
