Larvotto Resources (ASX:LRV) has signed a binding offtake agreement with privately held Wogen Resources for the sale of antimony concentrate produced at the Hillgrove Project in New South Wales.
Founded in 1972, Wogen Resources is a physical commodity trading house that has an established presence in the global antimony market and a London Metal Exchange metals trader specialist.
Larvotto, which has a market capitalisation of $222.34 million, says the agreement is supported by a US$4 million ($6.15 million) prepayment facility with investment manager Xcelsior.
The facility will support Larvotto finalise the current Definitive Feasibility Study, due in Q1 2025, and further expand ongoing exploration programs designed to show the full scale of Hillgrove’s mineralisation.
Managing Director Ron Heeks says completing the offtake agreement is another milestone for the Hillgrove Project as it progresses towards production.
“This extensive due diligence process undertaken by Wogen and Xcelsior included site visits by Wogen and Xcelsior staff and other independent experts,” Heeks says.
“It provided a strong endorsement of the project’s quality and potential.
“With the addition of the US$4 million and the $8 million received from the conversion of 2024 and 2025 options since the release of our last quarterly report, we are well placed to supercharge exploration to demonstrate the significant upside we believe exists at Hillgrove.”
Heeks adds that the company is focused on securing a gold concentrate offtake agreement.
“A thorough evaluation of all options is underway with numerous counterparties and we look forward to updating our shareholders once an agreement is completed,” he says.
In August 2024, a Prefeasibility Study was completed for the Hillgrove Project which revealed robust financials with over 600,000 ounces of gold-equivalent forecast to be produced in the current mine plan.
The project hosts a mineral resource estimate of 1.7 million ounces of gold-equivalent at 7.4 grams per tonne gold-equivalent.
Larvotto Resources is an Australian explorer focused on the discovery and development of gold and antimony through its flagship Hillgrove Project.
Write to Aaliyah Rogan at Mining.com.au
Images: Larvotto Resources
