Larvotto Resources to acquire Hammer Metals for $54M
Larvotto Resources (ASX:LRV) has announced a binding agreement to acquire 100% of Hammer Metals (ASX:HMX) by way of a board-recommended scheme of arrangement.
The acquisition will expand Larvotto’s copper holdings in the Mt Isa region of Queensland.
Under the terms of the all-scrip agreement, Hammer shareholders are set to receive one Larvotto share for every 22 Hammer shares held.
The exchange represents an implied offer price of $0.06 per share, valuing Hammer’s equity at approximately $54 million.
The transaction has received a unanimous recommendation from the Hammer board, subject to the absence of a superior proposal and an independent expert report confirming the scheme is in the best interests of shareholders.
The merger will create an enlarged Larvotto group with an expected pro forma market capitalisation of approximately $871 million.
To advance the Mt Isa strategy, a $15 million placement has been secured at a 15% premium, anchored by a strategic investment from global commodity giant Glencore.
The capital injection will accelerate development in Queensland, bolstered by Larvotto’s near-term cashflow from its Hillgrove antimony and gold project, where production is scheduled to commence in August.
