06/12/2021 - 14:15

Larvotto lists after $6m raising

06/12/2021 - 14:15

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Larvotto Resources has become the latest WA-based explorer to list on the stock exchange, with proceeds from its IPO to fund exploration in Australia and New Zealand.

Larvotto lists after $6m raising
Larvotto's flagship asset as its Mt Isa copper project in Queensland. Photo: Larvotto Resources

Larvotto Resources has become the latest WA-based explorer to list on the stock exchange, with proceeds from its initial public offering to fund exploration in Australia and New Zealand.

The Nedlands-based company listed at 14 cents this morning, down 30 per cent on its IPO price.

That was despite earlier raising the maximum under its IPO, being $6 million, with the offer priced at 20 cents and led by Canaccord Genuity and Aitken Murray Capital Partners.

Larvotto has allocated more than half of the proceeds to exploration, according to its prospectus, with at least $2 million going toward its Mt Isa copper project in Queensland.

Mt Isa is the company's flagship asset and surrounds Glencore’s mining operations of the same name, as well as Round Oak Minerals’ Barbara mine.

Larvotto had acquired Mt Isa from Rio Tinto earlier this year.

The explorer also owns the Eyre and Ohakuri projects, which are located in Western Australia and New Zealand, respectively, and are prospective for gold and nickel, among other metals.

“All the projects have suffered from a lack of modern exploration and are still largely underexplored, especially given their excellent strategic locations,” managing director Ron Heeks told the market.

“The company looks forward to commencing field work to enhance the potential of the projects and move towards development.”

Mr Heeks, who has nearly a 6 per cent shareholding in Larvotto, is the former managing director of Geopacific Resources and World Wide Mining Projects.

The Larvotto board also includes non-executive chair Mark Tomlinson, a former director at Patersons Securities, and non-executive director Anna Nahajski-Staples, the founder of Paloma Investments.

Larvotto’s shares were unchanged this afternoon, closing at 14 cents.

Its listing follows that of that eight WA-based explorers which commenced trading last month, including Cooper Metals, Evolution Energy Minerals and Winsome Resources.

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