Larvotto rejects ‘undervalued’ US takeover bid

Larvotto Resources (ASX: LRV) has rejected US Antimony Corporation’s (USAC) takeover bid after the board unanimously agreed the offer materially undervalued the company. 

USAC lodged the offer, valued at $723m, on October 20 seeking to exchange six shares in USAC for every 100 shares in Larvotto. This would make the value of the deal dependant on daily market performance of USAC shares at the time. 

Larvotto Resources non-executive chair Mark Tomlinson says the board is confident that the company’s value and long-term growth potential significantly exceeds the indicative value of the offer. 

“With Hillgrove set to become the next major Western supplier of antimony, the project holds significant strategic value as governments and industries seek to secure diversified supply chains for critical minerals,” he said. 

“At current gold and antimony prices, the project’s capital payback is expected to be achieved within months of first production, positioning Larvotto to deliver sustained profitability and long-term value for our shareholders.” 

The Hillgrove gold-antimony project, located in NSW, has a mineral resource estimate (MRE) of 1.7moz gold equivalent at 7.4 g/t of gold and is set to be Australia’s largest antimony producer. 

“Hillgrove is a high-grade, near-term production project and is now fully funded following recent debt and equity initiatives undertaken by Larvotto,” Mr Tomlinson said. 

“Hillgrove also has substantial exploration upside with the potential to extend mine life and generate strong revenues for many years to come.” 

Antimony is considered a critical mineral by both the US and Australia. 

The takeover bid was announced prior to Australian prime Minister Anthony Albanese and US President Donald Trump signing a $13b critical minerals agreement.