Why Is US Antimony Surging Over 10% Premarket Today?

United States Antimony (UAMY) stock jumped over 10% in premarket trading on Monday after the company said it has submitted a non-binding offer to acquire Australia’s Larvotto Resources at a valuation of close to $470 million.

What’s The Deal?

The company intends to pay Larvotto shareholders A$1.40 per share to acquire the rest of the company, which it does not own. U.S. Antimony already unveiled a 10% stake in the Australian miner last week.

The offer, which was sent to Larvotto on Friday, includes a fixed exchange ratio of 6 USAC common stock shares for every 100 Larvotto shares.

"Our proposal to combine with Larvotto reflects our deep commitment to build a world-class industry player in the critical minerals space and our strong conviction in the strategic and cultural fit between the two organizations as well as our countries,” said the U.S. firm’s CEO, Gary Evans.

What Does US Antimony Gain?

Larvotto operates the Hillgrove Gold and Antimony Project in New South Wales, Australia, which contains the world’s eighth-largest antimony reserves. The possible deal could help the combined company tap into the growing demand for the critical mineral amid export restrictions imposed by China.

Last month, U.S. Antimony secured a five-year contract worth up to $245 million from the U.S. Defense Logistics Agency to contribute to the antimony stockpile. Earlier in October, it secured $25 million in capital through a securities purchase agreement with a prominent long-only mutual fund

Stocktwits Traders Cheer UAMY-Larvotto Deal

Retail sentiment on Stocktwits U.S. Antimony was in the 'extremely bullish' territory at the time of writing.

United States Antimony stock has surged over sixfold this year, easily outpacing gains on the benchmark S&P 500 and Nasdaq indices.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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