Larvotto greenlights $140M NSW Hillgrove gold-antimony mine
The final investment decision (FID) followed the completion of a US$105 million (A$161 million) senior secured bond issue and a fresh $60 million equity raising.
Locking in FID 18 months after picking up Hillgrove from administrators for a bargain $8 million - including a $5 million environmental bond - is nothing short of remarkable. The textbook turnaround has arguably highlighted one of the savviest deals struck on the ASX in the past two years.
Larvotto says it has now opened the door to one of Australia's most strategically important critical minerals projects, putting the company in the rare position of becoming the only new source of antimony outside China for the next four years.
'Approving this FID represents a landmark moment in the development of Hillgrove.'
Larvotto Resources managing director Ron Heeks
Antimony is listed as a critical mineral around the globe and was thrust into the headlines a year ago after China - the world's biggest producer - announced it would no longer allow exports. The news sent the metal price through the roof, quadrupling to more than $75,000 a tonne.
Antimony is an essential element used in batteries, solar panels and military-grade applications. And the company's entry into the antimony market comes at a critical time, when western nations are scrambling to reduce their reliance on Chinese supply.
Larvotto Resources managing director Ron Heeks said: 'Approving this FID represents a landmark moment in the development of Hillgrove. The project is also set to provide the mining industry in New South Wales with a new producing operation. We are grateful for the incredible support the project has continually received in the state from the respective NSW Resources and Planning Departments.'
A definitive feasibility study released in May painted a blockbuster picture for Hillgrove, confirming it as a technically robust, high-margin powerhouse.
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