Larvotto Resources (ASX:LRV) has entered into a binding underwriting agreement with Aitken Mount Partners, Blue Ocean Equities, and Canaccord Genuity (Australia) to ensure $4.5 million of cash will be received from the exercise of certain options.
There are circa 14.9 million options outstanding from those issued in conjunction with the company’s initial public offering in late 2021, which are the subject of the agreement. The options have a strike price of $0.30 with an expiry date of 1 December 2024.
Holders of the 14.9 million ASX-listed options retain the right to exercise the options in accordance with their terms, up until their expiry in early December.
Along with the funds from the underwriting of the options, the company continues to assess a number of other funding sources to progress Hillgrove gold-antimony project in the north-east of New South Wales, including traditional debt funding, funding connected to gold and antimony offtake agreements and the possibility of securing Western world government finance.
To date, 2024 has been a “watershed year” for the company given progress of its assets and the strategically important antimony production projected to come from Hillgrove, the company says.
Entry into the Underwriting Agreement provides certainty to the company with respect to the receipt of approximately $4.5 million of cash, being the outstanding 14.9 million options at their strike price of $0.30.
This cash of approximately $4.5 million along with the company’s current cash balance provides a strong capital base that ensures the company is well funded for its current development and exploration work programmes at its flagship Hillgrove gold-antimony project in the north-east of New South Wales. Commenting on entry into the
Managing Director Ron Heeks says Larvotto is actively working on site at Hillgrove as it conducts works needed to complete the Feasibility Study along with drilling of ‘high-grade’ antimony and gold targets.
This exploration drilling aims to add to the existing reserve of 600,000oz gold equivalent through conversion from its resource base of approximately 1.7Moz of Au-Eq.
“We are also looking to add more resource tonnes as well as providing the potential for mine life extension and prioritisation of higher grade material earlier into the Hillgrove mine schedule,” says Heeks.
The underwriting of the aforementioned options from the 2021 IPO provides the company with an ‘excellent capital base’ to add further value as Larvotto heads into its planned Hillgrove antimony / gold development in 2025, the MD adds.
Write to Adam Orlando at Mining.com.au
Images: Larvotto
