Hillgrove Restart Hinges on Larvotto’s $100M Bond Market Success
Larvotto Resources is exploring a USD 100 million senior secured bond to finance the restart of its Hillgrove Antimony and Gold Project, signaling a major step in advancing its mineral portfolio.
- Plans for USD 100 million senior secured bond issuance
- Funds targeted for Hillgrove project restart capital expenditure
- Bond tenor proposed at four years, subject to market conditions
- Larvotto’s diversified mineral projects across Australia and New Zealand
- Engagement of Clarksons Securities for fixed income investor calls
Larvotto’s Strategic Financing Move
Larvotto Resources Limited (ASX, LRV) has announced plans to engage fixed income investors through a series of calls starting 14 July 2025, aiming to gauge interest in a potential USD 100 million senior secured bond. This bond, if issued, would carry a four-year tenor and is intended to provide critical funding for the restart capital expenditure of the Hillgrove Antimony and Gold Project in New South Wales.
Funding the Hillgrove Restart
The Hillgrove project, a key asset in Larvotto’s portfolio, has been earmarked for a significant capital injection to resume operations. The company plans to combine the bond proceeds with existing cash reserves and equity funding to support this restart. This move underscores Larvotto’s commitment to advancing its flagship project, which holds both antimony and gold resources; commodities increasingly in demand for industrial and technological applications.
Broader Portfolio and Market Position
Beyond Hillgrove, Larvotto maintains a diverse suite of mineral projects, including the Mt Isa copper, gold, and cobalt project in Queensland, the Eyre multi-metals and lithium project in Western Australia, and a gold exploration initiative in New Zealand’s North Island. This diversified approach positions Larvotto to capitalize on multiple commodity markets, balancing risk and opportunity.
Market Conditions and Next Steps
The bond issuance remains conditional on market conditions, reflecting the company’s cautious approach amid fluctuating investor appetite for mining sector debt. Larvotto’s engagement of Clarksons Securities to coordinate investor calls indicates a proactive strategy to secure favorable terms and build investor confidence. The outcome of these calls will be pivotal in determining the timing and scale of the bond issue.
Leadership and Governance
Led by Managing Director Ron Heeks and overseen by a board blending exploration expertise, corporate finance acumen, and ESG sensibilities, Larvotto is positioning itself to navigate the complexities of project development and capital markets. This governance mix aims to ensure that the company’s growth is sustainable and aligned with shareholder interests.
Bottom Line?
Larvotto’s bond plans mark a critical juncture for Hillgrove’s revival and the company’s broader growth ambitions.
Questions in the middle?
- Will market conditions support the full USD 100 million bond issuance?
- How soon can Hillgrove’s restart capital expenditure begin following funding?
- What impact will the bond have on Larvotto’s overall financial leverage and credit profile?
