Larvotto Resources has signed an $8m (A$12.28m) non-binding term sheet with Wogen Resources and Xcelsior Capital to advance the Hillgrove antimony and gold mine in New South Wales (NSW), Australia.
The agreement includes a $4m prepayment loan associated with life-of-mine antimony offtake and gold concentrate marketing rights over Larvotto’s Hillgrove operation.
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Larvotto will hold exclusive rights to the sales of gold doré produced at Hillgrove.
Metals financing company Xcelsior Capital has committed to providing a $4m senior secured working capital loan.
The loan is intended to support Larvotto in finalising its initial ore reserve statement and completing a bankable feasibility study.
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These steps are essential for the company to secure project financing and initiate mining operations at Hillgrove.
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By GlobalDataAdditionally, the agreement will see exotic metals trader Wogen offering exclusive offtake sales as well as distribution services globally.
The term sheet is contingent upon several conditions’ precedent, which include a comprehensive due diligence process and the successful negotiation of binding agreements.
These steps are standard in securing financing and moving projects towards production.
Larvotto managing director Ron Heeks said: “The Wogen Xcelsior combination has been selected from a group of potential financing and offtake partners. Wogen is a UK-based metals trading company with an established presence in the antimony market and Xcelsior a specialist critical minerals investor.
“For them to consider funding the development of the company is a massive endorsement of the project and leaves the company fully funded to move to project financing for Hillgrove while maintaining exploration on its other projects.
“Wogen/Xcelsior and Larvotto will now move quickly to undertake due diligence and complete full-form documentation for this financing arrangement. Larvotto looks forward to working with both Wogen and Xcelsior to deliver the best outcome for the development of Hillgrove and return for shareholders.”
