Larvotto Resources has raised US$105 million to help restart its Hillgrove gold and antimony project in New South Wales, thanks to a fully subscribed senior secured bond issue backed by major Australian and overseas investors.
Larvotto says the issue highlights the compelling development case for Hillgrove and its potentially pivotal role in supplying critical antimony to global markets. Investors in the bond issue include leading natural resources and renewable energy companies.
The company will invest the new proceeds, its existing cash and other equity to restart its Hillgrove project. Larvotto expects to settle the issue on August 1 and to start drawing on the funds in October.
In June, Larvotto received NSW Department of Planning, Housing and Infrastructure approval for its Modification 6 application to upgrade processing infrastructure and underground mining access at the historic mine.
The critical regulatory milestone enables the company to restart mining and processing activities, has bolstered the company’s confidence in final-stage financing and paves the way for first production in 2026.
Funds will be allocated to critical development activities, including the transition to dry-stacked tailings, subject to departmental approval.
Larvotto has opted for dry-stacked tailings at Hillgrove due to its environmental, engineering and cost advantages and because it is particularly suited to the site’s steep terrain and existing infrastructure.
Larvotto Resources managing director Ron Heeks said: “The bond completion marks another milestone for Larvotto Resources and its Hillgrove project. Completed well within the expected project finance timeline, for the company to be in a position to undertake a bond issue is a strong endorsement of the project and its projected returns.”
Heeks said the bond was sufficient to cover the expected budget to expand and start mining at Hillgrove and will ensure operations get underway in the second quarter of 2026.
He added the successful bond issue would provide a simple path forward as it is covenant-light and does not include items such as metal hedges, royalties or marketing fees.
The project financing was completed only weeks after the release of the Hillgrove definitive feasibility study which valued the project’s net present value at $694 million using an 8 per cent discount rate. The study assumed metal prices of US$2850 (A$4384) per ounce of gold and US$41,000 (A$63,076) per tonne of antimony..
When Larvotto flips the switch on operations at its Hillgrove project - home to a 1.97-million-ounce gold equivalent resource grading 7.2 grams per tonne (g/t) - it expects to churn out an annual production of 40,566 ounces of gold and 4878t of antimony over an 8.2-year mine life.
The total resource sits at 1.13 million ounces of gold and 96,000t of antimony, including a 636,000-ounce gold equivalent ore reserve at 6.6g/t, positioning Hillgrove as a high-grade, dual commodity play.
The bond issue was managed by Clarksons Securities, issued via Larvotto subsidiary Hillgrove Mines and has a 12 per cent coupon. Repayments include interest-only payments for the first two years, followed by amortisation over years three and four, with a final bullet payment in July 2029.
Larvotto is progressing a further Mod 5 approval process to increase Hillgrove’s processing capacity from 250,000 tonnes to 500,000t per year and to permit dry-stack tails storage, which would further boost the project’s outlook.
With robust antimony and gold fundamentals and strong institutional backing, Larvotto is well-positioned to advance Hillgrove towards production in 2026 and contribute to global critical metal supply chains.
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By Doug Bright
