TLDR
- USAC dives into global growth with a bold Larvotto acquisition proposal.
- Antimony giant eyes Australia in a game-changing critical minerals deal.
- USAC’s 10% Larvotto stake sets stage for full-scale global expansion.
- Market dips as USAC bets big on Larvotto to power its mineral future.
- USAC’s Larvotto move signals new era in global mining diversification.
United States Antimony Corporation (NYSE American: UAMY) closed at $11.19 on October 17, marking a sharp 10.91% drop.
United States Antimony Corporation, UAMY
The USAC announced a proposal to acquire all shares of Australian-based Larvotto Resources Limited. The move signals a major strategic shift, potentially redefining the company’s position in the global critical minerals market.
The proposal includes an offer of six USAC shares for every 100 Larvotto shares held by Larvotto shareholders. USAC believes the offer represents a strong premium over Larvotto’s most recent capital raise and trading prices. The transaction, if accepted, will occur through a scheme of arrangement under Australian law.
USAC’s share decline reflects immediate market reaction, possibly linked to concerns over dilution or deal execution risks. The company maintains confidence in the potential upside of the combined business. The proposed acquisition remains subject to regulatory approvals, shareholder consent, and binding agreements.
USAC Gains Major Stake, Sets Ground for Full Acquisition
USAC has already acquired approximately 10% of Larvotto’s issued share capital through open-market cash purchases. The company now holds the position of Larvotto’s largest single shareholder, which may strengthen its hand in the proposed deal. This accumulation indicates strong intent and underlines a firm commitment to the acquisition.
The proposed exchange ratio aims to deliver value while preserving capital flexibility for USAC in the near term. The company expects enhanced diversification and resource synergies if the transaction proceeds. It also projects long-term growth opportunities across U.S., Canadian, and Australian mining jurisdictions.
USAC’s board sees strategic alignment between both companies in terms of operations and mineral portfolios. It also highlights complementary technical strengths and the potential for global scalability. These factors may improve shareholder returns over time if integration succeeds.
Acquisition Aligned with Broader Growth Strategy
USAC aims to transform into a leading diversified supplier in the critical minerals space through this transaction. The company sees Larvotto’s portfolio as a strong fit with its existing antimony and zeolite operations in North America. The deal is positioned to boost access to advanced projects and global markets.
USAC operates processing facilities in Montana and Mexico and sells products primarily in the U.S. and Canada. These include antimony oxide, metal, trisulfide, and precious metals sourced from third-party ore. Applications span batteries, ammunition, flame retardants, and industrial materials.
To execute the transaction, USAC has engaged Jett Capital Advisors, Henslow, Ashurst, and Duane Morris for financial and legal counsel. The company plans to work with Larvotto’s board to finalize terms and complete due diligence. Further announcements will follow as regulatory and corporate processes advance.
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