Larvotto Maintains Capital Discipline as Hammer Acquisition Falls Away
Larvotto Resources Limited (ASX: LRV) has decided not to match Austral Resources’ competing proposal for Hammer Metals, which Hammer determined to be superior to Larvotto’s existing acquisition agreement. The Board concluded that matching the offer would not meet its required value and return thresholds, reinforcing its disciplined approach to capital allocation and long-term shareholder value creation.
Larvotto is directing its attention towards bringing the Hillgrove Mine into production, with commissioning activities at the processing facility progressing in stages. Once the operation reaches its planned steady-state capacity, Hillgrove is anticipated to deliver around 4,900 tonnes of antimony and more than 40,000 ounces of gold each year over the existing seven-year mine life.
If Hammer terminates the agreement to proceed with Austral’s proposal, Larvotto expects to receive an approximately AU$0.55 million break fee and repayment of its outstanding loan. The proposed Glencore share placement is also expected to lapse.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Larvotto Maintains Capital Discipline as Hammer Acquisition Falls Away
Larvotto Resources Limited (ASX: LRV) has decided not to match Austral Resources’ competing proposal for Hammer Metals, which Hammer determined to be superior to Larvotto’s existing acquisition agreement. The Board concluded that matching the offer would not meet its required value and return thresholds, reinforcing its disciplined approach to capital allocation and long-term shareholder value creation.
Larvotto is directing its attention towards bringing the Hillgrove Mine into production, with commissioning activities at the processing facility progressing in stages. Once the operation reaches its planned steady-state capacity, Hillgrove is anticipated to deliver around 4,900 tonnes of antimony and more than 40,000 ounces of gold each year over the existing seven-year mine life.
If Hammer terminates the agreement to proceed with Austral’s proposal, Larvotto expects to receive an approximately AU$0.55 million break fee and repayment of its outstanding loan. The proposed Glencore share placement is also expected to lapse.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au