U.S. Antimony surged 16% in pre-market trading! Plans to acquire Australian miner Larvotto in an all-stock deal to strengthen key minerals

U.S. Antimony Corporation (USAC) has submitted a non-binding acquisition proposal to Australian miner Larvotto Resources Limited, intending to acquire 100% of the latter's shares through an all-stock transaction, which, if successful, will create one of the largest antimony producers globally outside of China.

USAC announced on October 19 that it has submitted a confidential preliminary acquisition proposal, planning to complete the transaction at a ratio of 6 shares of USAC stock for every 100 shares of Larvotto stock. The company's Chairman and CEO Gary C. Evans stated that this move reflects its commitment to building a world-class enterprise in the critical minerals sector. The proposal represents a significant premium for Larvotto shareholders compared to the company's last financing price announced on July 25, 2025, and recent trading price ranges.

The transaction will be conducted under the scheme arrangement provisions of the Australian Corporations Act 2001 and will require both parties to sign a formal agreement, obtain approval from Larvotto shareholders, regulatory approvals, and meet customary closing conditions. USAC has recently acquired approximately 10% of Larvotto's shares in the open market, becoming its largest single shareholder.

This news propelled U.S. Antimony's pre-market stock price to surge by 16%, reflecting the market's positive expectations regarding the strategic value of critical minerals like antimony and the prospects for industry consolidation. Antimony, as an important flame retardant material and military material, is increasingly highlighted in the context of global supply chain restructuring.

Transaction Structure: All-Stock Acquisition Proposal

According to the proposal submitted by USAC, Larvotto shareholders will receive 6 shares of USAC stock for every 100 shares they hold. This exchange ratio represents a significant premium compared to the recent equity financing price announced by Larvotto on July 25 of this year, as well as recent trading price ranges.

The transaction will be conducted under the scheme arrangement provisions of the Australian Corporations Act 2001. According to the proposal, the completion of the transaction is subject to several conditions, including negotiations and signing of a binding scheme implementation agreement, obtaining approval from Larvotto shareholders, regulatory approvals, and customary closing conditions. U.S. Antimony has purchased approximately 10% of Larvotto's issued capital in the open market, making it the largest single shareholder of Larvotto.

USAC has assembled a professional advisory team for this transaction, including hiring Jett Capital Advisors and Henslow as financial advisors, Ashurst as Australian legal counsel, and Duane Morris as U.S. legal counsel. The company emphasizes that the final transaction terms still need to be negotiated and a formal scheme implementation agreement signed, and that regulatory approvals and customary closing conditions must be met

Strategic Positioning: Seizing Antimony Production Capacity

USAC clearly stated in the announcement that the merger with Larvotto will create "one of the largest antimony producers globally outside of China." Chairman and CEO Gary C. Evans commented:

"Our proposal to merge with Larvotto reflects our firm commitment to building a world-class industry player in the critical minerals sector, as well as our strong confidence in the strategic and cultural fit between the two organizations."

He stated that this represents "a compelling opportunity" for Larvotto shareholders to participate in the upside of a larger, more diversified group that will possess financial strength, global influence, and top-tier technological capabilities.

USAC positions itself as a "critical minerals and zeolite company," with products covering various critical minerals such as antimony, cobalt, tungsten, and zeolites. The company operates processing facilities in Montana, USA, and Mexico, processing third-party ores into antimony oxide, metallic antimony, antimony trisulfide, and precious metals.

Business Layout: Diversified Critical Mineral Portfolio

USAC and its subsidiaries in the United States, Mexico, and Canada primarily sell antimony, zeolite, and precious metal products in the U.S. and Canada. The company's facilities in Montana and Mexico process third-party ores to produce antimony oxide, metallic antimony, antimony trisulfide, and precious metals.

Antimony oxide is used in flame retardant systems for plastics, rubber, fiberglass, textiles, paints, coatings, and paper, and also serves as a color fixative in paints and a phosphor in fluorescent bulbs. Metallic antimony is used in bearings, batteries, and munitions, while antimony trisulfide is used as a primer for ammunition. The company also recovers precious metals, primarily gold and silver, from third-party ores at its facilities in Montana.

At the Bear River Zeolite facility in Idaho, USAC mines and processes zeolite, an industrial mineral used in water filtration, wastewater treatment, nuclear waste and other environmental remediation, odor control, gas separation, animal nutrition, soil improvement, and fertilizers. During 2024 and 2025, the company plans to begin acquiring mining rights and leases in Montana, Alaska, and Ontario, Canada, to expand its operational scale and product offerings.

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