Shares in Larvotto Resources Ltd (ASX: LRV) hit a new record high on Monday after the company received a scrip-based takeover bid from United States Antimony Corporation (USAC).
Larvotto shares reached an early high of $1.44 per share, before settling back to be changing hands for $1.35, up 9.3%, in early trade.
The Australian company, which was valued at $640.3 million at the close of trade on Friday, is progressing its Hillgrove project in New South Wales, where it recently announced new high-grade drilling results.
The company also has a copper, gold, and cobalt project at Mt Isa in Queensland and a multi-metals and lithium project near Norseman in Western Australia.
Non-cash bid worth $1.40
United States Antimony Corp (NYSEMKT: UAMY) is offering six of its shares for every 100 Larvotto shares, which it says equates to $1.40 per Larvotto share.
The US company recently emerged as a significant shareholder in Larvotto, having bought up a 10% stake.
Larvotto's board said on Monday morning there was no certainty a deal would be done at this stage.
As the board told the ASX:
The indicative offer is subject to a number of conditions and there is no certainty that the indicative offer will ultimately result in a binding proposal that the board of Larvotto is willing to recommend to its shareholders.
USAC said in its own statement that it "is the world's first fully integrated antimony company with mining assets, mid-stream operations, and downstream refining''.
The company said there were "exceptionally strong" strategic and financial benefits in bringing the two companies together, and it was particularly keen on Larvotto's Hillgrove project.
Australia is treated as a domestic source of mineral supply under the U.S. Defense Production Act, which strengthens the policy rationale for this transaction. Hillgrove can provide near-term antimony concentrate or feedstock to USAC's processing operations. This creates an immediate path for additional margin enhancement and to incremental refined products, reduces more expensive third-party feed dependence, and shortens time to revenue from new mine supply.
Historic mine getting a new life
Larvotto's Hillgrove project has been mined for antimony and gold since 1857, and the company is still working towards making a final investment decision to go ahead with the project.
The company earlier this month said it had contracted a company to design and build the processing plant upgrade at Hillgrove, and it expected commissioning to start in the third quarter of 2026.
The company said at the time it expected to become the world's next major antimony miner, producing 7% of global supply, once Hillgrove was up and running.
USAC will set up a listing of its shares on the ASX to allow Larvotto shareholders to continue to trade their stock once the takeover is complete.
