Larvotto rejects USAC acquisition offer in strategic antimony move

Larvotto Resources

Larvotto rejects USAC acquisition offer as its board unanimously concludes the proposal undervalues the company’s future potential. The indicative bid from US Antimony (USAC), lodged on 17 October, offered six USAC shares for every 100 Larvotto shares. However, Larvotto rejects USAC acquisition offer terms that do not reflect the embedded value of its Hillgrove antimony-gold project in New South Wales. The Australian producer also signals confidence in its standalone growth pathway as Hillgrove advances toward first production in 2026. As a result, existing shareholders are being encouraged to back management’s independent strategy rather than tender into USAC’s stock-based bid.

Hillgrove antimony-gold project underpins Larvotto valuation

Larvotto rejects USAC acquisition offer primarily because Hillgrove anchors a strong medium-term antimony growth story. The project is expected to start production in the second quarter of 2026, reinforcing Larvotto’s transformation from developer to producer. Hillgrove could deliver about 5,700 t/yr of antimony during its first five years, positioning Larvotto as a significant non-Chinese supplier. Therefore Larvotto rejects USAC acquisition offer terms that, in its view, fail to price in this production profile and commodity exposure. The company sees rising strategic value in antimony, which is used in flame retardants, alloys and defense-related applications. In that context, management appears unwilling to surrender full control ahead of key de-risking milestones.

US Antimony’s strategic ambitions face a setback

Larvotto rejects USAC acquisition offer at a time when US Antimony is trying to secure more upstream supply. USAC already owns around 10pc of Larvotto, or about 51.7mn shares, giving it a meaningful toehold. However, the rejection leaves USAC without a clear path to full ownership of Hillgrove’s future antimony output. The company did not respond to requests for comment, leaving its next steps unclear. It could revisit the proposal with improved terms, maintain its minority stake, or eventually exit if strategic alignment fades. Meanwhile, the failed approach highlights intense competition for antimony assets as Western buyers seek to diversify supply away from traditional producers.

The Metalnomist Commentary

Larvotto’s decision to reject USAC’s stock-based proposal underscores how developers now price in a strategic premium on critical mineral assets. In the antimony space, projects like Hillgrove can rapidly gain importance for supply diversification, making lowball bids increasingly hard to justify. For US Antimony, securing material through offtake stakes or joint ventures may prove more achievable than outright control in a market where geology and geopolitics are converging.