Larvotto Resources Limited has decided not to exercise its right to submit a counterproposal to match a competing takeover offer made by Austral Resources Limited for Hammer Metals Limited.

The board concluded that matching the competing terms would fail to satisfy the return and value thresholds required under the company's growth criteria. If the Hammer Metals board proceeds with the Austral proposal, Larvotto expects the existing scheme implementation deed to be terminated.

That termination will trigger a break fee of approximately A$0.55 million payable to Larvotto, alongside the full repayment of an outstanding loan provided to Hammer. Additionally, a previously announced placement of new shares to Glencore is expected to no longer take place because it was conditional upon the implementation of the Hammer acquisition.

Meanwhile, operations advance at the Hillgrove Mine in New South Wales, where commissioning of the minerals processing facility is expected in August 2026. The project is backed by a forecast annual output of approximately 4,900 tonnes of antimony and over 40,000 ounces of gold across a seven-year mine life once steady-state production is reached.

Read the full announcement: Hammer Metals Acquisition Update