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Australia's Larvotto Resources indications antimony offtake arrangement with Wogen

Larvotto Resources Limited stated on Monday it had signed a binding offtake arrangement with trading house Wogen Resources for sales of its first 7 years of antimony output at the Hillgrove job in New South Wales.

The Australian company aims to produce 5,400 metric lots of antimony annually at Hillgrove, representing 7% of global production, it said on its website.

After China's exports limitations on antimony, the Hillgrove job has actually become a tactical asset being among the world's. leading 10 antimony deposits with product near-term production. potential in a Western jurisdiction, experts at Blue Ocean. equities said in a note in September.

China announced in August it was restricting exports of some. antimony items from the middle of September, resulting in a. plunge in deliveries in October and an acceleration of efforts to. look for alternatives outside China.

China last year accounted for 48% of global mined output of. antimony, a metal utilized in military applications such as. ammunition, infrared missiles, nuclear weapons and night vision. safety glasses, as well as in batteries and photovoltaic devices.

The rate of antimony reached a record high of over $35,000. per load in November, a considerable boost from $12,000 per heap. when Larvotto got the Hillgrove job last December, the. company said.

With the finalizing of the offtake contract, the $4 million. prepayment is now payable. The funding will support completing. metallurgical testwork, finalising the DFS (Definitive. Feasibility Research study) due in Q1 2025 and broaden ongoing expedition. efforts as we seek to increase Hillgrove's resource inventory,. Ron Heeks, handling director at Larvotto, stated in a declaration.

The offtake arrangement is supported by a $4 million. prepayment facility with investment company Xcelsior Capital. Limited, the statement stated.

Larvotto will now concentrate on securing a gold concentrate. offtake contract, leveraging the present strong gold. concentrate market. An extensive examination of all choices is. under method with various counterparties, Heeks added.

(source: Reuters)