How Did Larvotto Secure US$105M to Restart Hillgrove Mining by 2026?
Larvotto Resources has successfully raised US$105 million through a senior secured bond to fund the restart of its Hillgrove Gold-Antimony Project in New South Wales, targeting mining operations by mid-2026.
- US$105 million senior secured bond fully subscribed
- 12% coupon over 4 years with interest-only payments first 2 years
- Funds to finance Hillgrove Project restart and expansion
- Strong institutional investor support from Australia and abroad
- Operations expected to commence in Q2 2026
Strong Investor Backing for Hillgrove Restart
Larvotto Resources Limited (ASX, LRV) has successfully closed a US$105 million senior secured bond issue, marking a significant milestone in its plan to restart and expand the Hillgrove Gold-Antimony Project in New South Wales. The bond was fully subscribed, attracting a mix of Australian and international institutional investors, including funds focused on natural resources and renewable energy sectors. This broad support underscores confidence in the project's fundamentals and its strategic importance in supplying critical antimony metal to global markets.
Bond Terms and Financial Structure
The bond carries a 12% coupon over a four-year tenor, with interest-only payments scheduled for the first two years, followed by principal amortisation in years three and four, and a bullet payment at maturity. Settlement is expected on 1 August 2025, with the first drawdown anticipated around October 2025, subject to customary closing conditions. Notably, the bond is covenant light and free from metal hedges, royalties, or marketing fees, providing Larvotto with financial flexibility as it advances the project.
Funding the Hillgrove Project Restart
The net proceeds from the bond, combined with Larvotto’s existing cash and equity contributions, will fund the recommencement of mining operations at Hillgrove. The company aims to have operations underway by the second quarter of 2026. Managing Director Ron Heeks highlighted that completing the bond issue within the expected timeline is a strong endorsement of the project’s viability and projected returns. The financing package is designed to cover the full budget for the project’s expansion and restart, ensuring a smooth path forward.
Strategic Importance and Broader Portfolio
Hillgrove is a key asset in Larvotto’s portfolio, which also includes projects in Mt Isa, Queensland; Norseman, Western Australia; and Ohakuri, New Zealand. The Hillgrove Project’s focus on antimony, a critical metal with growing demand, positions Larvotto to play an important role in global supply chains. The successful bond issuance reflects not only investor confidence in Hillgrove but also in Larvotto’s broader strategy and management team.
Looking Ahead
With financing secured, Larvotto is poised to advance Hillgrove’s development swiftly. The company’s ability to execute on its restart plan will be closely watched by investors and industry observers, particularly given the bond’s relatively high coupon and the evolving market dynamics for antimony and gold. The next key milestones will include project construction progress and operational updates as the company moves toward production.
Bottom Line?
Larvotto’s successful bond issue sets the stage for Hillgrove’s revival, but execution risks remain as the project moves toward production.
Questions in the middle?
- Will Larvotto meet its Q2 2026 operational start target without delays?
- How will market prices for antimony and gold impact project economics post-restart?
- What are the implications of the bond’s 12% coupon on Larvotto’s future financing flexibility?
