Larvotto Resources (ASX:LRV) has signed a binding agreement with PYBAR Mining Services to undertake around 20 kilometer of underground development at its wholly-owned Hillgrove antimony-gold project in New South Wales over the next four years, with an option to extend, according to a Thursday Australian bourse filing.

Hillgrove's development is fully funded through a AU$70 million equity raise and a $105 million senior secured bond, per the filing.

Hillgrove's underground mining will resume in the fourth quarter, targeting 40,500 ounces of gold and 14,000 tonnes of antimony concentrate annually, supplying up to 7% of the global antimony market, the filing said.

PYBAR will oversee development, rehabilitation, ground support, and haulage, providing all equipment, personnel, and supervision, the filing added.