US Antimony Corp Eyes Full Takeover of Larvotto at A$1.40 a Share

A Bold Bid for Larvotto

Larvotto Resources Limited (ASX, LRV) has received a confidential, conditional, and non-binding indicative offer from United States Antimony Corporation (USAC) to acquire all remaining shares it does not already own. The offer, announced after market close on 17 October 2025, proposes an exchange ratio of 6 USAC shares for every 100 Larvotto shares, valuing Larvotto at approximately A$1.40 per share. This represents a substantial premium to Larvotto’s recent trading levels, signaling USAC’s strong interest in consolidating its position in the antimony and multi-metals mining sector.

Strategic Rationale and Synergies

USAC, a vertically integrated antimony producer with operations spanning the United States, Mexico, and Canada, sees Larvotto’s Hillgrove Antimony-Gold Project in New South Wales as a critical asset to enhance its supply chain security and product diversification. The combination promises to align Larvotto’s high-quality antimony concentrate with USAC’s established midstream and downstream refining operations, potentially reducing costs and improving margins.

USAC emphasizes the strategic importance of Hillgrove as a reliable Australian source that complements its existing contracts, including a significant US Defense Logistics Agency agreement. The merger could strengthen USAC’s ability to meet government supply obligations and expand its customer base across Asia Pacific, the United States, and Canada.

Conditions and Next Steps

The offer is proposed to be implemented via a scheme of arrangement and is subject to several conditions, including satisfactory due diligence, regulatory approvals, and the unanimous recommendation of Larvotto’s board. Larvotto has engaged Barrenjoey Capital Partners and Allion Partners to provide financial and legal advice as it evaluates the proposal. Shareholders are advised that no immediate action is required while the board carefully considers the offer.

USAC plans to establish a secondary listing on the ASX, allowing Larvotto shareholders to trade USAC shares via CHESS Depositary Interests, which may ease the transition for investors. The offer also includes potential tax advantages for Australian shareholders through scrip-for-scrip rollover relief.

Market and Regulatory Implications

The proposed transaction could reshape the antimony supply landscape by creating a geographically diversified, vertically integrated entity with enhanced operational efficiencies and financial strength. However, the deal remains non-binding and conditional, with regulatory hurdles such as Foreign Investment Review Board (FIRB) approval and competition clearances yet to be navigated. The timeline for completion remains uncertain, and the Larvotto board’s final stance will be pivotal.

Investors will be watching closely for further updates, particularly the board’s recommendation and any competing proposals. The strategic fit and premium valuation offered by USAC make this a compelling development in the resources sector.