Australian metal developers Larvotto, Hammer propose $54m merger to enlarge copper portfolio
ASX-listed antimony and gold developer Larvotto Resources has entered into a binding scheme implementation deed under which Larvotto will acquire 100% ownership of fellow-listed base metals developer Hammer Metals by way of a court-approved scheme of arrangement.
The transaction will combine Larvotto's near-term producing Hillgrove antimony/gold project in New South Wales with Hammer's district-scale Mt Isa copper and other critical minerals portfolio in Queensland.
The merger will create an Australian critical minerals and precious metals company with near-term production, strategic antimony exposure and a substantial copper growth platform based on a resource of about 530 000 t of copper equivalent metal.
The acquisition materially expands Larvotto's existing Queensland copper strategy and landholding, with Hammer's portfolio being complementary to Larvotto's Mt Isa project and historic Blockade Copper mine which Larvotto has an option to acquire.
This consolidated regional copper platform will be capable of supporting multiple development and exploration pathways across the Mt Isa district.
The enlarged Larvotto group will offer investors a unique combination of near-term cashflow anticipated from Hillgove; exposure to a globally significant antimony asset; a district-scale copper and critical minerals development, including molybdenum, rhenium, tungsten and gold; significant resource growth and exploration upside across an enlarged Australian portfolio; and a demonstrated track record of securing significant financing to enable timely project progression.
The terms of the merger include Hammer shareholders receiving one Larvotto share for every 22 Hammer shares held, representing an implied offer price of $0.06 per Hammer share, and a total equity value of $54-million.
The transaction has been unanimously recommended by the Hammer board in the absence of a superior offer.
The enlarged Larvotto group is expected to have a pro forma market capitalisation of about $871-million.
