en.Wedoany.com Reported - Larvotto Resources announced on Tuesday a gold concentrate offtake agreement with Glencore, covering the first seven years of production from the Hillgrove project in New South Wales.

Larvotto Resources (ASX: LRV) on Tuesday announced an offtake agreement with Glencore (LON: GLEN) to sell gold concentrate produced from its wholly-owned Hillgrove antimony-gold project. The agreement covers the first seven years of mining operations, with an expected annual offtake volume of approximately 15,000 dry metric tonnes on an ex-mine basis, with Glencore responsible for all logistics from the mine to the final customer destination.

The company stated that this arrangement, combined with a previously signed antimony concentrate offtake agreement with Wogen Resources, completes the key marketing strategy for Hillgrove's major concentrate products. Managing Director Ron Heeks noted in a press release that securing a globally recognized offtake partner is a significant milestone in transitioning from the development phase to the operational phase; interest in offtake from all major commodity trading companies during the tender process was high, which is also consistent with expectations of strong gold prices.

Metallurgical test work on potential tungsten concentrate by-products at Hillgrove continues, and offtake discussions are expected to progress as development activities advance. The company reported a 90% tungsten recovery rate in metallurgical tests last year, with feed grades increasing 16-fold, indicating that a simple and cost-effective processing circuit can produce a marketable tungsten concentrate. First production at Hillgrove remains on schedule and budget, with commissioning expected to begin in August this year. Larvotto shares were flat on Tuesday, with the company's market capitalization at A$690.3 million (US$485 million).

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