Austral Resources Australia bids $80.8M for Hammer Metals

• Austral Resources Australia has launched a competing $80.8 million non-binding bid to buy Hammer Metals.
• The proposal offers a 29.9% premium over an existing takeover bid from Larvotto Resources.
• The acquisition aims to secure a long-term source of ore feed for a Queensland processing facility.

Austral Resources Australia (ASX:AR1) has submitted a non-binding indicative proposal to acquire 100% of Hammer Metals (ASX:HMX) for an implied value of $80.8 million in equity value.

This competing offer represents a 29.9% premium over an existing scheme proposal from Larvotto Resources (ASX:LRV).

“We believe this proposal represents a compelling and strategically superior outcome for Hammer shareholders,” said Austral Resources Australia Chairman David Newling.

The transaction structure includes A0.007 per share.

The company stated that the transaction is expected to position the business as a dominant mid-tier copper developer in northwest Queensland.

Following the announcement, the Austral Resources Australia share price was unchanged at $0.15.

The acquisition would add 39.2 million tonnes of future ore feed from the target company's portfolio to support the Rocklands processing facility.

Austral plans to fund future exploration across the combined regional tenements using its existing asset base of $75 million in cash.