Larvotto picks up past-producing Hillgrove mine
ASX-listed Larvotto Resources on Friday announced the “transformational” acquisition of the Hillgrove gold and antimony project, in New South Wales.
The company entered into a binding term sheet with the administrators of former ASX-listed minerals explorer Red River Resources to acquire the mine.
MD Ron Heeks said the unique nature of the strategic acquisition of the Hillgrove project had moved Larvotto into a new league.
“After an intense few months of due diligence and negotiations with the administrators of Red River, we have achieved what no exploration program could ever have done – in one swoop, we have added 1.4-million ounces of high-grade JORC gold-equivalent ounces for the purchase price of under $6/oz (after NSW government environmental bonds).
“This is exceptional value for shareholders plus we have joined the exclusive club of high-grade one-million-ounce-plus explorers with growing exposure to critical minerals.
“Not many junior companies get the chance to move up the resource curve so rapidly and cost-effectively,” said Heeks.
Hillgrove is the biggest antimony resource in Australia and is ranked in the top ten in the world, making it a strategically significant deposit. Antimony is a critical mineral in multiple countries, including the US and Australia.
Hillgrove has not operated continuously at full capacity since 2016 when the antimony price collapsed, besides from a brief run by Red River in 2021.
Consideration for the acquisition comprises a A$3-million purchase price and about A$5-million for the replacement of environment bonds.
Larvotto will fund the deal by issuing A$7.6-million in shares, including a A$4.9-million placement and further issues of shares to Trafigura to the value of A$2.5-million. It also plans a fully underwritten nonrenounceble rights issue to eligible shareholders of A$2.7-million on an one-for-two basis at A$0.07 a share.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation