Larvotto Resources has financial backing to accelerate development studies and exploration at its Hillgrove gold-antimony project in New South Wales.
While due diligence (DD) is completed regarding Larvotto’s $US8 million financing package, the company has raised $2 million through a share placement.
“To maintain momentum and advance Hillgrove, we wanted to accelerate development studies for Hillgrove’s production and continue exploration during the Wogen and Xcelsior DD process, which is expected to take several months,” Larvotto managing director Ron Heeks said.
Larvotto signed a non-binding contract with Xcelsior Capital and Wogen Resources in March. This would see Xcelsior loan $US4 million for antimony offtake and gold concentrate marketing rights from the Hillgrove project.
Xcelsior will also provide a $US4 million working capital loan to fund Larvotto through to the updated ore reserve statement and bankable feasibility study for Hillgrove.
The agreement would also see Wogen, a leading antimony trading house with 50 years of international presence, provide exclusive offtake sales and distribution services globally once production commences.
Larvotto said the $US8 million financing package would enable the company to complete a bankable feasibility study and progress towards project financing and mining operations at Hillgrove.
Prior to selecting Xcelsior and Wogen as financing partners, Larvotto said it received strong interest from multiple international commodity houses.
The $2 million share placement will assist Hillgrove exploration and development studies and enable Larvotto to maximise its upcoming field season at its Mt Isa project in Queensland.
“We’re … entering (the) field season at our Mt Isa copper-gold project, now the wet season has ended and we are looking forward to recommencing exploration activity, to follow up the promising results from last season’s fieldwork,” Heeks said.
“This well-supported, but relatively small equity raise provides the capability to enable both projects to be progressed until the larger, non-dilutive fundraising package is completed.
“With near record prices for gold and antimony, Larvotto considers maintaining momentum is prudent.”
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