Larvotto Resources (ASX:LRV) has entered a binding scheme implementation deed to fully acquire Hammer Metals (ASX:HMX) through a court-approved scheme of arrangement.
The acquisition progresses Larvotto’s plan to build an Australian critical minerals and precious metals portfolio by combining its near-term producing Hillgrove Antimony-Gold Project in New South Wales with Hammer’s Mt Isa copper and critical minerals asset base in Queensland.
It is also expected to enhance Larvotto’s financial capacity and strategic position.
A part of Larvotto’s current Queensland copper strategy, the Hammer acquisition will add around 530,000 tonnes of copper equivalent JORC resources via the Mt Isa portfolio to Larvotto’s holdings.
Based on Larvotto’s closing price on 5 June 2026 of $1.33, the scheme consideration implies an offer price of $0.06 per Hammer share, a fully diluted equity value for Hammer of around $54 million, and an 18% premium to Hammer’s closing share price on 4 June 2026.
The scheme has been unanimously approved by the board of Hammer.
Under the terms of the agreement, Hammer shareholders will receive one new Larvotto share for every 22 Hammer shares held at the date of the scheme implementation.
Larvotto Managing Director Ron Heeks says the transaction is both strategic and tactical, and “strengthens Larvotto’s position as an emerging Australian critical minerals and precious metals company”.
“We believe the combination creates a unique investment proposition, offering shareholders exposure to near-term gold and antimony production, a globally significant strategic antimony asset, and one of the largest copper and critical minerals development portfolios in the world-class Mt Isa region.”
Alongside the acquisition, Larvotto intends to launch a $15 million strategic placement to Glencore, providing capital to accelerate the planned development activities across the company’s Queensland copper portfolio.
The placement will see new Larvotto shares issued to Glencore at $1.53 per share, a 15% premium to the closing price on 5 June 2026.
Proceeds will be used to accelerate drilling at Kalman and Jubilee, advance studies across the consolidated Queensland copper portfolio, support development activities, and provide additional balance sheet flexibility.
Larvotto Resources is an Australian resources developer actively advancing its portfolio of in-demand minerals projects.
Write to Amy Rotman at Mining.com.au
Images: Larvotto Resources
