Larvotto Raises $60M Equity at $0.68 to Fully Fund Hillgrove Project
Larvotto Resources has successfully raised $60 million in equity alongside a $105 million bond, fully funding the Hillgrove Antimony-Gold Mine development with production targeted for mid-2026.
- Completed $60 million two-tranche equity placement at $0.68 per share
- Raised $5 million via Share Purchase Plan for existing shareholders
- Combined with $105 million senior secured bond to fully fund Hillgrove project
- Hillgrove mine development targets first ore production in Q2 2026
- Placement shares issued at a 6.2% discount to last closing price
Equity Raising Completes Hillgrove Funding
Larvotto Resources Limited (ASX – LRV) has successfully closed a $60 million equity raising through a two-tranche placement, complemented by a $5 million Share Purchase Plan (SPP) for existing shareholders. This capital injection, combined with a recently completed US$105 million senior secured bond, fully finances the development and operational ramp-up of the Hillgrove Antimony-Gold Mine in New South Wales.
The placement involved issuing approximately 88.2 million new shares at $0.68 each, representing a modest discount to recent trading prices. The first tranche raised nearly $42 million under the company’s placement capacity, while the second tranche, subject to shareholder approval expected in late August or early September, will raise an additional $18 million.
Strategic Importance of Hillgrove
Hillgrove is positioned as the only new western source of antimony expected to come online within the next four years, a critical mineral increasingly sought after for its role in fire retardants, batteries, and other industrial applications. Larvotto’s Managing Director, Ron Heeks, highlighted the strong investor demand and the rapid progress since acquiring the project just 18 months ago.
With the financing phase now complete, Larvotto is turning its full attention to construction and commissioning, aiming for first ore production in the second quarter of 2026. The project’s capital structure, comprising approximately 70% debt and 30% equity, underscores the high internal rate of return and robust debt capacity of the Hillgrove operation.
Shareholder Participation and Future Outlook
The $5 million SPP offers existing Australian shareholders the opportunity to purchase additional shares at the placement price without brokerage fees, with applications opening on July 28 and closing on August 15. This initiative aims to maintain strong shareholder support as the company advances toward production.
Beyond Hillgrove, Larvotto continues to develop a diversified portfolio including copper, gold, cobalt, lithium, and other metals projects across Australia and New Zealand, positioning itself as a growing player in critical and battery minerals.
As Larvotto moves into the construction phase, market watchers will be keen to track progress milestones and the company’s ability to deliver on its production timetable amid evolving commodity markets.
Bottom Line?
With full funding secured, Larvotto’s Hillgrove project is set to become a key new antimony source, but execution risks and market conditions will shape the next chapter.
Questions in the middle?
- Will shareholder approval for tranche two proceed smoothly at the upcoming EGM?
- How will commodity price fluctuations impact Larvotto’s project economics and financing costs?
- What are the key operational risks as Larvotto transitions from development to production?