Larvotto Resources (ASX:LRV) has executed a binding offtake agreement with Glencore (LSE:GLEN), for the sale of gold concentrate produced during the first seven years of mining at the Hillgrove Project in New South Wales.
Under the offtake deal, an expected annual offtake of 15,000 dry metric tonnes of concentrate is expected to be sold to Glencore.
The agreement is structured on a mine-gate basis, with Glencore responsible for all logistics from the mine to the final customer destination. The offtake is on normal commercial terms for an agreement of this nature, subject to executing final agreements.
Larvotto, which has a market capitalisation of $690.34 million, will receive payment based on London Bullion Market Association gold prices, adjusted for contained gold content.
With antimony and gold concentrate marketing arrangements established, Larvotto will continue advancing activity onsite towards commissioning and first production expected in August 2026.
Larvotto’s transition
Managing Director Ron Heeks says securing a globally recognised offtake partner is a milestone in the transition from development to production.
“As expected with the strength in the gold price, there was a high level of interest for the offtake during the tender process from all major commodity houses,” Heeks says.
“Glencore’s global presence and established customers stood out as an ideal partner, and we are looking forward to working together.”
Metallurgical test work is continuing for the potential production of a tungsten concentrate by-product from Hillgrove, with offtake discussions expected to progress as development activities advance.
Gold strengthened above US$4,300 ($6,121) an ounce on Tuesday 9 June, after Iran and Israel agreed to halt attacks against each other. The precious metal’s price is 30% higher compared to the same time last year, as reported by Trading Economics.
The Hillgrove Project has a resource estimate of 1.7 million ounces @ 7.4 grams per tonne gold equivalent. The project is situated 23km east of Armidale in northern New South Wales.
Larvotto Resources is an Australian resources developer focused on starting production at the Hillgrove Project.
Write to Aaliyah Rogan at Mining.com.au
Images: Larvotto Resources
