Larvotto Resources (ASX:LRV) has secured US$105 million ($161.34 million) in its bond issue to develop its wholly owned Hillgrove Antimony and Gold Project in New South Wales.
The company will be required to pay interest only installments for the first two years of the contract and then straight line amortisation for the next two years, valuing at 50% of the balance, as well as a bullet payment on the due date in July 2029.
Over a four year term, Larvotto Resources’ wholly owned subsidiary Hillgrove Mines is offering a 12% coupon to investors at an issue price of US$1 at 94% of par value.
Clarksons Securities is acting as the manager for the bond issuance, which is expected to be settled on 1 August 2025 before drawdown in October.
Drawdown will depend on the company’s satisfaction of customary conditions, which includes the completion of security documentation, contribution to project equity meeting requirements, and achieving its customary cost for each draw-down.
If Hillgrove Mines holds $30 million cash after distribution, the subsidiary will leverage a ratio of one or less from six months after the completion of the project.
Holders are eligible to option a required repayment at a value of 101% given the company changes control or delists from trading platforms.
Managing Director Ron Heeks says the bond turnaround within the expected timeline is a strong endorsement for the Hillgrove Project, marking a milestone for the company.
“The bond is sufficient to cover the expected budget for the expansion and commencement of mining at Hillgrove, ensuring operations will be underway in Q2 2026,” Heeks says.
“The successful issue of the Bond provides a simple path forward as it is covenant light and does not include items such as metal hedges, royalties or marketing fees.”
The company recently returned its Definitive Feasibility Study , which will aid the restart of the Hillgrove Project amid the project financing.
Larvotto Resources is focused on expanding and developing its portfolio of “in-demand” minerals projects across Australia and New Zealand.
Larvotto Resources will be attending the Noosa Mining Investor Conference, held between 23-25 July, at the Peppers Noosa Resort.
Mining.com.au is an official media partner of this year’s conference.
Write to Maddison Elliott at Mining.com.au
Images: Larvotto Resources
