Larvotto Resources has formally rejected a non-binding, indicative offer from United States Antimony Corporation (USAC) to acquire the remaining 90 per cent of its shares.
The proposed offer, announced on October 20, suggested a fixed exchange ratio of six USAC common stock shares for every 100 Larvotto shares. USAC currently holds approximately 10 per cent of Larvotto’s shares.
After reviewing the offer and consulting independent advisers, the Larvotto board unanimously determined that the proposal materially undervalues the company.
Larvotto has communicated this decision to USAC.
At the time of the offer, USAC’s five-day volume weighted average price implied a value of $1.40 per Larvotto share. By October 24, this implied value had fallen to $1.11 per share based on USAC’s closing price, or $1.13 per share using USAC’s five-day volume-weighted average price (VWAP).
“The board is confident that Larvotto’s intrinsic value and long-term growth potential significantly exceed the indicative value implied by the offer,” Larvotto Resources non-executive chair Mark Tomlinson said.
“Hillgrove is a high-grade, near-term production project and is now fully funded following recent debt and equity initiatives undertaken by Larvotto.
“Hillgrove also has substantial exploration upside with the potential to extend mine life and generate strong revenues for many years to come.”
Larvotto’s board and management remain focused on advancing the Hillgrove antimony-gold project, which is on track to achieve first production in 2026.
The company released a definitive feasibility study and completed project financing to support the expansion of the processing plant earlier this year. Once fully operational, Hillgrove is forecast to supply around seven per cent of the world’s antimony requirements.
“Antimony is a critical mineral vital to energy storage, advanced technologies and defence applications,” Tomlinson said. “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.
“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.”
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