Australia's Larvotto Resources signs antimony offtake agreement with Wogen

Larvotto Resources

02/12/2024 10:13

BEIJING, Dec 2 (Reuters) - Larvotto Resources Limited
 LRV.AX  said on Monday it had signed a binding offtake
agreement with trading house Wogen Resources for sales of its
first seven years of antimony output at the Hillgrove project in
New South Wales.
    The Australian company aims to produce 5,400 metric tons of
antimony annually at Hillgrove, representing 7% of global
production, it said on its website.
    After China's exports limits on antimony, the Hillgrove
project "has become a strategic asset being one of the world's
top 10 antimony deposits with material near-term production
potential in a Western jurisdiction", analysts at Blue Ocean
equities said in a note in September.
    China announced in August it was restricting exports of some
antimony products from the middle of September, resulting in a
plunge in shipments in October and an acceleration of efforts to
seek alternatives outside China.
    China last year accounted for 48% of global mined output of
antimony, a metal used in military applications such as
ammunition, infrared missiles, nuclear weapons and night vision
goggles, as well as in batteries and photovoltaic equipment.
    The price of antimony reached a record high of over $35,000
per ton in November, a significant increase from $12,000 per ton
when Larvotto acquired the Hillgrove project last December, the
company said. 
    "With the signing of the offtake agreement, the $4 million
prepayment is now payable. The funding will support completing
metallurgical testwork, finalising the DFS (Definitive
Feasibility Study) due in Q1 2025 and expand ongoing exploration
efforts as we look to increase Hillgrove's resource inventory,"
Ron Heeks, managing director at Larvotto, said in a statement.
    The offtake agreement is supported by a $4 million
prepayment facility with investment company Xcelsior Capital
Limited, the statement said.
    "Larvotto will now focus on securing a gold concentrate
offtake agreement, leveraging the current strong gold
concentrate market. A thorough evaluation of all options is
under way with numerous counterparties," Heeks added.  

 (Reporting by Amy Lv and Colleen Howe; Editing by Alison
Williams)
 ((Amy.Lv@thomsonreuters.com;))