Larvotto announces $8m funding for Hillgrove

20th March 2024 By: Mariaan Webb - Creamer Media Senior Deputy Editor Online

Larvotto announces $8m funding for Hillgrove

ASX-listed Larvotto Resources has signed a nonbinding term sheet for $8-million financing to develop the Hillgrove antimony and gold mine, in New South Wales.

A funding package from Wogen Resources and Xcelsior Capital has been selected to fund the mine development.

Wogen is a UK-based metals trading company with an established presence in the antimony market and Xcelsior is a specialist critical minerals investor.

“For them to consider funding the development of the company is a massive endorsement of the project and leaves the company fully funded to move to project financing for Hillgrove while maintaining exploration on its other projects,” said MD Ron Heeks.

The nonbinding term sheet includes a $4-million prepayment loan linked to a life-of-mine antimony offtake and gold concentrate marketing rights being granted over the Hillgrove operation. Larvotto will retain the rights to gold dore sales from Hillgrove.

Further, Xcelsior will provide a $4-million senior secured working capital loan.

The funding package will allow Larvotto to finalise its initial ore reserve statement and complete a bankable feasibility study.

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 former owner Red River in 2021.