Larvotto Resources Secures A$5M For Hillgrove Gold-Antimony Project

Larvotto Resources Ltd (ASX:LRV) has secured firm commitments to raise A$5 million via the issue of shares at A$0.105 each.

The placement was strongly supported by the existing and new domestic and offshore sophisticated and institutional investors.

In conjunction with the placement, Larvotto will also offer a share purchase plan to eligible shareholders to raise up to A$1 million at A$0.105 per share.

Use of funds

Proceeds from the raisings will be used for activities towards further development of the Hillgrove Project in New South Wales.

These include near-term completion of the pre-feasibility study (PFS) as well as exploration drilling to follow-up recent high-grade intersections.

Bringing Hillgrove back into production

Larvotto Managing Director Ron Heeks said: “This equity raising positions the Company to rapidly complete the Pre-Feasibility Study which outlines how we will bring the Hillgrove project back into production to deliver gold and antimony at a time of favourable pricing for both of our two key commodities.

“Given the advanced nature of the Hillgrove project, with its existing plant, well-developed infrastructure and ready access to ore from existing declines, we intend to move rapidly from the published Pre-Feasibility Study to the Bankable Feasibility Study stage.”

High-grade hits

Larvotto’s recent 2,036-metre diamond drilling program targeted the lower level of gold mineralisation at Bakers Creek.

Read: Larvotto Resources Shares Soar On High-Grade Gold Hits At Hillgrove

High-grade intersections include 31 metres at 65.8 g/t gold from 244 metres peaking at a bonanza grade of 5.3 metres at 220 g/t from 245 metres.

This intersection was outside the existing significant Mineral Resource of 1.4 million ounces (Moz) at 6.1g/t gold equivalent (AuEq).

Australia’s next gold-antimony mine

Heeks added: “We are also continuing our discussions with offtake partners for both our gold and antimony concentrates, which we expect to provide additional funding options for Larvotto.

“In the meantime, funds from this equity raising will be directed to ongoing drilling at the Hillgrove project.

“We have recently enjoyed great success with the drill-bit, notably at Bakers Creek, and are confident of adding materially to our high-grade resource base, giving investors exposure to potential mine life extensions and enhanced mine scheduling flexibility at Australia’s next gold-antimony mine.”

 

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