Larvotto Resources Finalizes Antimony Offtake Agreement with Wogen Resources
LRV (LRV) Share Update December 2024 Sunday 1st
Larvotto Resources Secures Antimony Offtake Agreement with Wogen Resources
Larvotto Resources Limited (ASX:LRV) has announced a significant milestone with the completion of an antimony offtake agreement with Wogen Resources Limited, accompanied by a US$4M prepayment facility.
Instant Summary:
- Antimony offtake agreement signed with Wogen Resources for Hillgrove Project.
- US$4M prepayment facility secured with Xcelsior.
- Agreement covers the first seven years of production at Hillgrove.
Agreement Details
Larvotto Resources Limited has successfully signed a binding offtake agreement with Wogen Resources Limited for the sale of antimony concentrate produced at its Hillgrove Project over the next seven years. This agreement is a major step forward for Larvotto as it moves towards production at Hillgrove.
The offtake agreement is bolstered by a US$4M prepayment facility provided by Xcelsior, which will support the company in completing its Definitive Feasibility Study (DFS) and expanding exploration activities at Hillgrove. The prepayment facility is expected to enhance Larvotto's financial position, enabling further development of the project.
Strategic Partnerships
Wogen Resources, a well-established commodity trading house with over 50 years of experience, will handle the global sales of Larvotto's antimony concentrate. This partnership is significant for Larvotto, providing access to Wogen's extensive market reach and expertise in the critical metals sector.
Xcelsior, known for its flexible financing solutions, plays a crucial role in this agreement by providing the necessary financial backing to ensure the project's progression. The involvement of both Wogen and Xcelsior underscores the confidence in the Hillgrove Project's potential.
The signing of the offtake agreement with Wogen Resources is a positive development for Larvotto Resources. It not only secures a buyer for the antimony concentrate but also provides immediate financial support through the prepayment facility. This move is likely to boost investor confidence and could positively impact Larvotto's stock price as it demonstrates progress towards production.
Investor Reaction:
Analysts are likely to view this agreement favorably, as it secures a long-term sales channel for Larvotto's antimony production and provides financial stability. The involvement of reputable partners like Wogen and Xcelsior adds credibility to the project, which could further attract investor interest.
Conclusion:
Investors should keep a close eye on Larvotto Resources as it advances the Hillgrove Project. The successful execution of the offtake agreement and the financial backing from Xcelsior position the company well for future growth. Stakeholders are encouraged to monitor upcoming developments, including the completion of the DFS and potential gold offtake agreements.