Larvotto Resources Limited · ASX:LRV
Larvotto Resources — Merger or Acquisition (October 2023)
38 slides from Larvotto Resources's merger presentation, Oct 20, 2023
Slide 1: Transformational Acquisition: Hillgrove Gold–Antimony Project
INVESTOR PRESENTATION | OCTOBER 2023 ASX:LRV | TGAT:K6X TRANSFORMATIONAL ACQUISITION HILLGROVE GOLD–ANTIMONY PROJECT ► High Grade JORC 1.4Moz AuEq1 1 See Announcement ASX: RVR 29 July 2021 – ‘Red River increases Hillgrove Resources to +1Moz Gold & 90kt Antimony’ for resources estimation and Slide 30
Slide 2: Disclaimer and Important Notices
DISCLAIMER Disclaimer and Important Notices Nature of this document: This investor presentation (Presentation) is dated 20 October 2023 and has been prepared and authorised by Larvotto Resources Limited (ACN 645 596 238) (Company) in connection with the Company’s proposed acquisition of the Hillgrov
Slide 3: Disclaimer and Important Notices
DISCLAIMER Disclaimer and Important Notices Disclaimer: The Company nor any of its advisers, affiliates, related bodies corporate, directors, officers, partners, employees and agents, have authorised, permitted or caused the issue, submission, dispatch or provision of this Presentation and, except t
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS ► ASX-listed, Market Capitalisation $10.2M at 0.13c per share ► Acquiring the Hillgrove Gold Antimony Project in NSW for $8M including $3M purchase price and $5M for replacement of govt bonds ► High-grade JORC 1.4Moz AuEq2 Resource acquired for a purchase price of <$6/oz (a sig
Slide 5: Existing Project Highlights
EXISTING PROJECT HIGHLIGHTS TARGETING EXPLORATION AND NEAR-TERM PRODUCTION IN AUSTRALIA AND NEW ZEALAND Australia ► Mt Isa Copper, Gold & Cobalt Project, QLD • 889km2 directly south and east of Mt Isa • Along strike Mt Isa Mine and surrounds Barbara Copper Mine • 9% cobalt in recent rock chips, no h
Slide 6: Hillgrove Gold-Antimony – A Transformational Acquisition
HILLGROVE GOLD-ANTIMONY – A TRANSFORMATIONAL ACQUISITION Hillgrove Project in NSW comprises: ► 1.4Moz AuEq3 Resources at 6.1g/t AuEq ► Resource (M&I 65.5%) available for conversion to Reserve ► World top 10 antimony deposit – Australia’s largest antimony deposit. Current price circa US$11,650/t ► Op
Slide 7: Corporate Overview
CORPORATE OVERVIEW Board and Key Personnel Corporate Structure Mark Tomlinson Non-Executive Chair Shares on Issue 78,367,225 Ron Heeks Managing Director Listed Options exercisable @ 0.30 15,000,000 Anna Nahajski-Staples Non-Executive Director Unlisted Options exercisable @ 0.30 22,925,523 Nicholas L
Slide 8: Cornerstone Investors
CORNERSTONE INVESTORS SUPPORTIVE INVESTORS ACROSS THE LRV PORTFOLIO GAGE CAPITAL MANAGEMENT • Beijing GAGE Capital Management Co. Ltd • Beijing based asset manager focused on equity investments and M&A in semiconductor, big data, AI, new energy, advanced manufacturing, medicine and health. • RMB 10b
Slide 9: Hillgrove Snapshot
HILLGROVE SNAPSHOT Location ► 23km east of Armidale (NSW) Tenement Area ► 93km2 total area, 51 granted tenements Commodity ► Gold, Antimony, and Tungsten Overview Mine Type ► Multiple UG mines ► Sealed national roads, Armidale railway line ► Power supply 66kV distribution line / 11kV transformer Inf
Slide 10: Hillgrove Mineral Resource Estimate
HILLGROVE MINERAL RESOURCE ESTIMATE JORC Mineral Resources4,5,6 AuEq Cont. Tonnes Au Grade Sb Grade Cont.Au Cont. Classification Grade AuEq (kt) (g/t) % (koz) Sb (kt) (g/t) (koz) Measured 442 3.6 3.8 9.4 51 17 134 Indicated 3,766 4.8 1.3 6.5 581 49 784 Measured & Indicated 4,208 4.7 1.56 6.8 632 66
Slide 11: Exploration: The Immediate Focus
EXPLORATION: THE IMMEDIATE FOCUS UNMINED HIGH-GRADE ORE READY TO GO, DRILL HITS OPEN IN ALL DIRECTIONS ► High grade intercepts from Bakers Creek September7 & November8 2022 drilling include: 4.50m @ 29.5g/t Au and 0.3% Sb incl. 0.45m @ 257g/t Au from 467.75m 0.40m @ 525g/t Au from 396.7m 0.40m
Slide 12: Infrastructure Rich
INFRASTRUCTURE RICH PROXIMITY TO ARMIDALE WITH ACCESS TO EXISTING REGIONAL INFRASTRUCTURE INCLUDING MAJOR HIGHWAYS, RAIL LINKS, REGIONAL AIRPORTS ► Primary Crusher –max throughput rate 150tph, single toggle jaw crusher ► Tramp Metal Removal –magnet for removal of mine support and ground steel ► Fine
Slide 13: Project Acquisition Terms
PROJECT ACQUISITION TERMS ► Hillgrove Gold Antimony Project for $8M including $3M purchase price and $5m for Acquisition replacement of govt bonds $5m paid to Administrators of Red River Resources Terms ► Acquisition includes all existing infrastructure – plant, machinery, mobile fleet, freehold lan
Slide 14: Equity Transaction Summary
EQUITY TRANSACTION SUMMARY SHARE PLACEMENT, SHARE ISSUE & RENOUNCEABLE RIGHTS ISSUE ► Share Placement of ~70M shares at 7c per New Share, raising ~$4.9M subject to shareholder approval ► ~44% discount to last trade at 0.13c Share Placement ► Approximately ~23.1% discount to TERP and issue ► Specific
Slide 15: Investment Proposition
INVESTMENT PROPOSITION ► Larvotto presents with an experienced team and a Market Capitalisation of circa $10.2M having enjoyed $26.5M of liquidity over the last 12 months with a high of 35.5c (Market Capitalisation circa $27.6M) ► Hillgrove has had some $200M spent on it and is being opportunistical
Slide 16: Supplementary Information
SUPPLEMENTARY INFORMATION Acquisition of Hillgrove: An Advanced Exploration Opportunity
Slide 17: Hillgrove History
HILLGROVE HISTORY Pre 1969 2004-2009 2013-2016 2019-Present ► 1857: Alluvial gold is ► 2004: Straits Resources ► 2013: Bracken acquires ► 2019: Hillgrove acquired by Red River discovered in the Bakers Creek acquires Hillgrove Hillgrove for $27.5m and and immediately commences detailed Gorge ► 2004 –
Slide 18: Established Goldfield
ESTABLISHED GOLDFIELD 93KM2 ACROSS SIX KEY MINING AREAS Bakers Creek (1) ► Largest gold production centre with the deepest workings in the Hillgrove field (c.436koz) ► Recent drilling results from Bakers Creek suggest it could be another Fosterville-like deposit ► Comprises three known individual, h
Slide 19: Existing Processing Assets
EXISTING PROCESSING ASSETS HILLGROVE’S EXISTING PROCESSING FACILITIES ARE STRATEGIC WITH AN ESTIMATED $60 MILLION11 REPLACEMENT VALUE Ore Handling Existing Process Flowsheet ► Ore was loaded onto trucks directly from the stopes or from stockpiles Ore ► Ore was hauled from UG on 40t articulated truck
Slide 20: Geological Overview
GEOLOGICAL OVERVIEW THE HILLGROVE MINERAL FIELD (425KM2) IS AN 9KM BY 6KM CORRIDOR OF GOLD/ANTIMONY/TUNGSTEN MINERALISED SHEARS AND FRACTURES Regional Geology ► Located in southern part of the New England Orogen Belt ► There are over 200 individual gazette deposits within the Hillgrove mineral field
Slide 21: Exploration Upside
EXPLORATION UPSIDE SIGNIFICANT EXPLORATION UPSIDE FROM >200 KNOWN (GAZETTED) GOLD-ANTIMONY DEPOSITS AND OCCURRENCES Known Au-Sb deposits and occurrences all have potential to extend to depth. Orebodies typically gold dominant from 500m vertical depth and below. Larvotto believes Bakers Creek could b
Slide 22: Discovery and Development Pipeline
DISCOVERY AND DEVELOPMENT PIPELINE OPPORTUNITY TO DEFINE NEW MINERAL RESOURCES ► Hillgrove has an extensive development pipeline with significant existing resources and DISCOVERY numerous advanced project areas that will PIPELINE advance in the near term. ► Early stage targets have spectacular early
Slide 23: Antimony – Critical Materials Outlook
ANTIMONY – CRITICAL MATERIALS OUTLOOK ANTIMONY, AMONG OTHER CRITICAL MATERIALS, HAS EXPERIENCED A RECENT RALLY IN PRICE WITH FURTHER SIGNIFICANT UPSIDE EXPECTED Commentary Critical Materials Matrix ► Critical Raw Materials are metals and minerals essential to economic and Light REE national security
Slide 24: Antimony Critical Materials Outlook Cont.
ANTIMONY CRITICAL MATERIALS OUTLOOK CONT. ANTIMONY, AMONG OTHER CRITICAL MATERIALS, HAS EXPERIENCED A RECENT RALLY IN PRICE WITH FURTHER SIGNIFICANT UPSIDE EXPECTED Top Uses ► Semi-conductor Industry: to produce certain types of diodes and infrared detectors ► Batteries: component in some lead-acid
Slide 25: Antimony Critical Materials Outlook Cont.
ANTIMONY CRITICAL MATERIALS OUTLOOK CONT. ANTIMONY, AMONG OTHER CRITICAL MATERIALS, HAS EXPERIENCED A RECENT RALLY IN PRICE WITH FURTHER SIGNIFICANT UPSIDE EXPECTED Recent 5-Year Antimony Price (99.65% CIF NEW US$/t) 2022 World Antimony Reserves (kt) United States, 60kt Turkey, 100kt Australia, 100k
Slide 26: Antimony Critical Materials Outlook Cont.
ANTIMONY CRITICAL MATERIALS OUTLOOK CONT. ANTIMONY, AMONG OTHER CRITICAL MATERIALS, HAS EXPERIENCED A RECENT RALLY IN PRICE WITH FURTHER SIGNIFICANT UPSIDE EXPECTED 26 Source: USGS, Roskill
Slide 27: Gold Equivalent Calculations
GOLD EQUIVALENT CALCULATIONS Resources throughout this presentation include gold equivalent calculations that combine Gold (Au) grades in grams/tonnes and Antimony (Sb) in percentages (%). Both gold and antimony are mined and processed using the same methodology and an Antimony/Gold and Gold/Antimon
Slide 28: Board of Directors
BOARD OF DIRECTORS Mark Tomlinson, B.Eng(Mining), FAusIMM | Non-Executive Chair Investment Banker and Mining Engineer with over 40 years’ experience in the Australian mining sector. Most recently, Mark was a Corporate Finance Director for over 13 years with Patersons Securities in Melbourne. During
Slide 29: Key Risks
KEY RISKS There are a number of risks associated with an investment in Larvotto, which include: • risks in relation to the Acquisition; • risks specific to the business and operations of Larvotto (which Larvotto continues to be exposed to irrespective of whether the Acquisition proceeds); • risks re
Slide 30: Key Risks
KEY RISKS c) Acquisition analysis The Company has undertaken financial, tax, legal and commercial analysis on the Hillgrove Gold Project in order to determine its attractiveness to the Company and whether to acquire it. It is possible that, despite such analysis and the best estimate assumptions mad
Slide 31: Key Risks
KEY RISKS f) Development Application No. 98/35 Red River has obtained a number of development consents under the Environment Planning and Assessment Act 1979 (NSW) in relation to the Hillgrove Gold Project. Condition 4 of Development Application No. 98/35 (DA 98/35) states that Hillgrove may carry o
Slide 32: Key Risks
KEY RISKS Risks specific to Larvotto a) Future capital risk The Company is an exploration company with associated expenditures and no sources of income other than through the issue of capital or the realisation of assets. The future capital requirements of the Company will depend on many factors inc
Slide 33: Key Risks
KEY RISKS Mining Industry Risks (a) Australian Native Title and Aboriginal Heritage In relation to tenements in Australia in which the Company will currently has or will acquire an interest in the future, there may be areas over which legitimate common law native title rights of Aboriginal Australia
Slide 34: Key Risks
KEY RISKS General Equity Investment Risks (a) Economic General economic conditions, introduction of tax reform, new legislation, movements in interest and inflation rates and currency exchange rates may have an adverse effect on the Company’s exploration, development and production activities, as we
Slide 35: Appendix A: Question 36 – Compliance Historical Exploration Results
APPENDIX A: QUESTION 36 – COMPLIANCE HISTORICAL EXPLORATION RESULTS In compliance with Question 36 of the ASX “Mining Reporting Rules for Mining Entities: Frequently Asked Questions” for “ASX Listing Rules Guidance Note 31” the following information is provided in relation to the information contain
Slide 36: Appendix B: Question 37 – Compliance Mineral Resources
APPENDIX B: QUESTION 37 – COMPLIANCE MINERAL RESOURCES In compliance with Question 37 of the ASX “Mining Reporting Rules for Mining Entities: Frequently Asked Questions” for “ASX Listing Rules Guidance Note 31” the following information is provided in relation to the information contained in the cur
Slide 37: Appendix B: Question 37 – Compliance Mineral Resources Continued
APPENDIX B: QUESTION 37 – COMPLIANCE MINERAL RESOURCES CONTINUED 6. Work Programs and Key Assumptions The work programs to generate the mineral resource estimate consisted of numerous programs of drilling over many years. The vast majority of drilling was diamond core. Drilling was undertaken from s
Slide 38: Contact Us
CONTACT US Unit 6, 105 Broadway Nedlands WA 6009 PO Box 496, Claremont WA 6910 T: +61 8 6373 0112 E: info@larvottoresources.com W: larvottoresources.com ASX:LRV | TGAT:K6X
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