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In a takeover offer, USAC said that it would pay AU$1.40 per Larvotto share, a 12.9 percent premium to the stock's last close.
Larvotto shareholders are set to receive six USAC shares for every 100 Larvotto shares held, bringing Larvotto’s value to AU$722.9 million.
Prior to this, USAC already secured approximately 10 percent of Larvotto's total issued share capital, believing it is currently the company’s largest single shareholder. The acquisition forms part of USAC’s goal to become a major antimony producer.
Larvotto owns the dual-commodity Hillgrove antimony-gold project in New South Wales, which is expected to become Australia’s largest antimony producer.
Hillgrove is projected to produce about 7 percent of global antimony supply. It currently holds a mineral resource of 1.7 million ounces gold equivalent at 7.4 grams per tonne gold equivalent.
The project is scheduled to commence production in 2026.
"Our proposal to combine with Larvotto reflects our deep commitment to build a world-class industry player in the critical minerals space and our strong conviction in the strategic and cultural fit between the two organizations as well as our countries,” commented USAC Chairman and Chief Executive Officer Gary C. Evans.
In a separate announcement, Larvotto confirmed receipt of the offer, saying that it is subject to certain conditions and will be “carefully considered” by the board.
Shares of Larvotto saw a spike following this announcement, closing at AU$1.295 on Monday (October 20). This represents a 4.44 percent increase from its Friday close of AU$1.240.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
