Shares in Larvotto hit a new record high earlier this month when USAC unveiled its bid, which was offering six of its shares for every 100 Larvotto shares. USAC said at the time this equated to $1.40 per Larvotto share.

Larvotto shares hit a high of $1.44 on the news but have been trending downwards in recent sessions, closing Friday's trade at $1.16.

Bid is way too low

The Australian company stated in a release to the ASX on Monday that its board had considered the USAC bid and recommended that shareholders reject it.

The company said in its statement:

After considering the offer in detail and taking into account the advice of our independent advisers, Larvotto's board of directors unanimously formed the view that the offer materially undervalues Larvotto and has informed USAC accordingly.

The board said USAC shares had fallen since the bid was announced, and as of Friday last week, the bid value had fallen to about $1.11 per Larvotto share.

New mine the focus

Larvotto said it remained focused on progressing its Hillgrove antimony and gold project, which was on track for first production in 2026.

The company released a definitive feasibility study for the Hillgrove project in New South Wales earlier this year, which indicated it would produce about 7% of the world's antimony requirements once it was up and running.

Larvotto chair Mark Tomlinson said on Monday that the board was confident "that Larvotto's intrinsic value and long-term growth potential significantly exceed the indicative value implied by the offer''.

He went on to say:

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.

Mr Tomlinson said the project would pay back its capital cost "within months of first production, positioning Larvotto to deliver sustained profitability and long-term value for our shareholders''.

USAC said in its statement when launching the takeover bid earlier this month that there were "exceptionally strong" strategic and financial benefits in bringing the two companies together.

USAC was intending to set up a listing of its shares on the ASX to allow Larvotto shareholders to continue to trade their stock once the takeover was complete.

The post Antimony and gold mine developer rejects low-ball takeover bid appeared first on The Motley Fool Australia.

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.

The post This antimony and gold stock is hitting record highs on takeover talks appeared first on The Motley Fool Australia.