Larvotto Resources has improved its balance sheet after receiving firm commitments from sophisticated and professional investors for an equity placement.
The junior has raised $2 million as part of the placement, with 11,111,111 shares issued at $0.18 per share. Each share in the placement carried one unlisted option with a strike price of $0.30 per option for 36 months from issue.
The placement comprised two tranches, with the first tranche raising $1.5 million using 100 per cent of the company’s 15 per cent available placement capacity under ASX listing rules 7.1.
Subject to shareholder approval, the second tranche will raise $500,000 and see the issue of the unlisted options.
Larvotto will use the funds from the placement to support exploration activities at the company’s Mt Isa copper project in Queensland and the Ohakuri gold project in New Zealand, along with working capital purposes.
The placement follows on from a royalty, equity and offtake (REO) agreement Larvotto inked with Canadian institutional fund Lithium Royalty Corp. (LRC) and Waratah Capital through its Electrification and Decarbonization Fund (E&D Fund).
The three-tiered agreement involved $1.4 million of cash payments from LRC in return for royalty and offtake privileges.
To complement this, LRC and the E&D Fund subscribed to a $2 million equity investment involving 11,111,111 shares issued at $0.18 each, with the addition of a free attaching option.
Larvotto managing director Ron Heeks said the placement and REO agreement positioned the company strongly going forward.
“Both investments now put Larvotto in good stead to maintain its momentum in advancing its exploration activities across its entire portfolio of assets with a broad scope of activities planned for Q4 2022 and into 2023,” he said.