Larvotto Resources has nailed down a pivotal $60 million equity raise to restart its Hillgrove antimony-gold mine in New South Wales, positioning the company to tap into soaring demand for critical minerals by mid-2026.
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.
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.”
Larvotto snapped up the Hillgrove site 18 months ago from administrators for a paltry $8 million, inclusive of a $5 million environmental bond. The project has since become the jewel in the company’s crown.
Fast forward to today and Larvotto’s Hillgrove project is shaping up as a genuine company-maker, with a recent definitive study slapping a jaw-dropping post-tax net present value of $694 million on the operation using an 8 per cent discount rate.
The mine is forecast to pump out a hefty $251 million EBITDA annually and deliver $128 million in free cash flow after tax every year, for more than eight years.
The project is one of the very few advanced antimony plays in the Western world. Antimony is classed as a critical mineral by several governments due to its importance in military and industrial applications, including semiconductors, batteries and flame retardants.
Settlement of the first tranche of 61.6 million new shares is due on August 1, with the second 26.6 million tranche to follow after shareholder approval in late August or early September.
Aitken Mount Capital Partners and Blue Ocean Equities were joint lead managers to the placement.
Larvotto also holds the Mt Isa copper-gold-cobalt project in Queensland and its Eyre multi-metals and lithium ground near Norseman in Western Australia.
But for now, all eyes are firmly fixed on Hillgrove and the looming production date that could put the company on the global critical minerals map.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By James Pearson
