Larvotto Resources Rejects $373 Million U.S. Takeover Offer, Calling It Undervalued
Key Highlights
- Bid Value: A$722.9 million ($469.7 million)
- Bid Price: A$1.40 per share initially; fell to A$1.11 after USAC share decline
- Bidder: United States Antimony Corporation (USAC)
- Target: Larvotto Resources
- Offer Type: Non-binding indicative proposal
- Larvotto’s Decision: Rejected unanimously by board as undervalued
- USAC Ownership: 10% existing stake in Larvotto
- Reason: Declining implied valuation and strategic misalignment
Introduction: Larvotto Pushes Back Against U.S. Takeover Bid
Australian diversified miner Larvotto Resourcesannounced it has rejected a takeover proposal from U.S.-based United States Antimony Corporation (USAC), asserting that the indicative offer “materially undervalues” the company.
The proposal, received last week, valued Larvotto at A$722.9 million ($469.7 million) based on USAC’s five-day volume-weighted average price. However, after USAC shares fell, the offer’s implied value dropped to A$573.3 million, or A$1.11 per Larvotto share, reducing the bid’s attractiveness to shareholders.
Board’s Response: “Offer Materially Undervalues the Company”
In a statement to the Australian Securities Exchange (ASX), Larvotto said its Board of Directors unanimously rejected the proposal after reviewing independent financial and legal advice.
“After considering the offer in detail and taking into account the advice of our independent advisers, Larvotto’s Board formed the view that the offer materially undervalues Larvotto and has informed USAC accordingly,” the company said.
This rejection marks a strong stance from Larvotto’s leadership as it seeks to retain shareholder value amid a period of operational expansion and favorable market conditions for resource exporters.
About the Bidder: U.S. Antimony’s Strategic Intent
United States Antimony Corporation (USAC) is a U.S.-based producer of antimony, zeolite, and precious metals, with operations primarily in the United States and Canada. The company already owns a 10% stake in Larvotto, giving it a foothold in the Australian miner’s portfolio.
The proposed acquisition was seen as part of USAC’s broader plan to diversify geographically and secure access to strategic mineral assets in the Asia-Pacific region. However, the drop in its share price quickly eroded the bid’s perceived value.
Larvotto’s Growth Outlook: Confidence in Resource Expansion
Larvotto’s decision to reject the bid reflects growing confidence in its asset quality, project pipeline, and commodity exposure. The company’s diversified operations include copper, gold, lithium, and rare earth projects across Australia and New Zealand, positioning it well for the ongoing global energy transition.
With commodity prices recovering and investor appetite for critical minerals rising, Larvotto’s leadership is signaling that its long-term intrinsic value exceeds near-term takeover premiums.
Market Reaction and Valuation Concerns
Analysts noted that USAC’s bid relied heavily on its own share valuation, which fluctuated sharply during the offer period. The implied offer price declined over 20% in less than a week, raising doubts about both the stability of the deal and the seriousness of the bidder’s intent.
“The combination of share volatility and the relatively low cash component made this an unattractive proposal,” said one Sydney-based mining analyst. “Larvotto’s rejection suggests the company believes it can unlock higher value independently or through a future, stronger bid.”
Conclusion: Larvotto Stands Firm Amid Rising Global Interest
As the global race for critical minerals and metals intensifies, Larvotto’s move underscores a broader theme: resource nationalism and long-term value creation now outweigh short-term premiums.
Unless USAC returns with a materially improved offer — likely above A$1.50 per share — Larvotto appears committed to charting its own growth path in the international mining landscape.
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