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.

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.

These steps are essential for the company to secure project financing and initiate mining operations at Hillgrove.

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Additionally, 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.”