Larvotto Resources obtains a capital increase of $30 million

Larvotto Resources obtains a capital increase of $30 million

Larvotto resources (ASX:LRV) announced a successful $30 million equity raising through the placement of 57.7 million new shares at $0.52 each. This two-tranche placement saw strong support from both existing and new institutional investors.

The funds, combined with $6.2 million from a recently announced antimony upfront payment facility and $8 million from option conversion, strengthen Larvotto’s ability to advance the Hillgrove gold-antimony project in 2025. Proceeds will support underground and surface exploration, the Hillgrove Definitive Feasibility Study (DFS), underground work, and the purchase of long-term processing equipment.

CEO Ron Heeks highlighted the strategic importance of the project in the context of China’s recent ban on antimony exports to the United States. “The strategic value of high-grade antimony, sourced from the Western world, is highly significant,” he said. “This capital raising leaves Larvotto in a strong position to advance the Hillgrove project and ramp up exploration activities.”

Settlement of the first tranche of the placing, comprising 26.27 million shares, is expected to take place on 12 December 2024. The second tranche, comprising 31.43 million shares, will be issued following an Extraordinary General Meeting (EGM) at end of January 2025.

The shares are trading 7.56% lower at 55 cents.

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