Larvotto locks in $60 million to fire up Hillgrove gold play
The cash injection was secured via a two-tranche placement to Australian and international investors priced at 68 cents a share - a modest 6.2 per cent discount to Larvotto's last traded price.
The offer was swamped with demand, with the board now launching a $5 million share purchase plan at the same price for existing shareholders.
The placement comes hot on the heels of Larvotto's US$105 million (A$159.6 million) senior secured bond issue, completed just days earlier, meaning the Hillgrove project is now fully funded through to production with a 70:30 debt-to-equity split.
According to the company, that structure comfortably surpasses its expectations and reflects the project's high-margin, fast-payback nature.
'With the financing stage for Hillgrove addressed, our sole attention turns to construction and commissioning of this unique brownfield opportunity.'
Larvotto Resources managing director Ron Heeks
The $60 million will be used to fund pre-production capital expenditure, early site works and operational readiness teams at Hillgrove, alongside ongoing exploration to expand the resource base.
With all boxes ticked on the financing front, Larvotto's full attention now turns to construction and commissioning.
Larvotto Resources managing director Ron Heeks said: 'The Hillgrove project is the only new source of western antimony supply expected to come online in the next four years. Now, with the financing stage for Hillgrove addressed, our sole attention turns to construction and commissioning of this unique brownfield opportunity. To be operating such a high IRR project within Australia and to be within 12 months of first production at a time of particularly strong interest in new critical mineral sources is very exciting.'
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