US Antimony's Bold Bid to Acquire Larvotto Sparks Critical Minerals Shakeup
United States Antimony Corporation has proposed acquiring Larvotto Resources in a deal that could create one of the largest antimony producers outside China, offering Larvotto shareholders a significant premium.
- USAC submits non-binding proposal to acquire 100% of Larvotto
- Offer includes six USAC shares for every 100 Larvotto shares
- USAC already holds approximately 10% of Larvotto shares
- Deal aims to create a global critical minerals powerhouse
- Transaction subject to shareholder and regulatory approvals
A Strategic Move in Critical Minerals
In a significant development for the critical minerals sector, United States Antimony Corporation (USAC) has put forward a confidential, non-binding indicative proposal to acquire all outstanding shares of Larvotto Resources Limited. The Australian miner, known for its portfolio of antimony, gold, copper, cobalt, and lithium projects, now faces a potential takeover that could reshape its future and the broader market landscape.
The proposed transaction, structured as a scheme of arrangement under Australian law, offers Larvotto shareholders six USAC shares for every 100 Larvotto shares held. This represents a notable premium over Larvotto's recent capital raise and trading prices, signaling USAC's strong interest and confidence in Larvotto's assets and growth potential.
Complementary Strengths and Global Ambitions
USAC, a leading producer of antimony and zeolite with operations spanning the United States, Mexico, and Canada, has already acquired about 10% of Larvotto's shares, becoming its largest single shareholder. The acquisition would combine USAC's established processing capabilities and market reach with Larvotto's diverse Australian mineral projects, including the Hillgrove Antimony-Gold Project in New South Wales and the Mt Isa copper, gold, and cobalt project in Queensland.
Gary C. Evans, USAC's Chairman and CEO, emphasized the strategic and cultural fit between the two companies, highlighting the opportunity to build a world-class player in critical minerals outside China. The combined entity would benefit from enhanced financial strength, technical expertise, and geographic diversification, positioning it well to meet growing global demand for essential minerals used in technology, energy, and manufacturing.
Next Steps and Market Implications
The proposal remains subject to negotiation of a binding scheme implementation deed, Larvotto shareholder approval, regulatory clearances, and other customary closing conditions. Both companies have engaged respected financial and legal advisers to navigate the complex process ahead.
For Larvotto shareholders, the offer presents a compelling premium and access to a larger, more diversified group with global reach. However, the non-binding nature of the proposal and the multiple approvals required mean uncertainty remains. Market participants will be watching closely for developments that could signal a new chapter in the critical minerals sector, especially as geopolitical and supply chain considerations heighten the importance of secure mineral sources.
Bottom Line?
This proposed acquisition could redefine critical minerals supply outside China, but the path to completion remains uncertain.
Questions in the middle?
- Will Larvotto shareholders approve the proposed scheme of arrangement?
- How will regulatory bodies in Australia and abroad respond to the transaction?
- What synergies and operational changes will the combined entity pursue post-acquisition?
