Austral Resources has launched a rival takeover bid for explorer Hammer Metals that trumps Larvotto Resources’ offer by nearly 30 per cent.
Austral Resources has lodged a non-binding indicative proposal to acquire 100 per cent of Hammer Metals in a deal valued at AU$80.8 million.
Under the terms of the structure, Hammer shareholders would receive 8.7 cents per share. This comprises 8 cents in Austral scrip alongside 0.7 cents in shares of a newly spun-out unlisted public company holding Hammer’s Western Australian gold assets.
The prize driving the premium bid is Hammer’s cornerstone Kalman deposit, a 39.2-million-tonne copper-gold-molybdenum-rhenium resource.
Kalman is located roughly 60 kilometres by road from Austral’s three-million-tonne-per-annum Rocklands processing facility near Cloncurry, which is locked in for a mid-2027 recommissioning. Securing Kalman would eliminate costly toll-treatment risks and hand Austral a long-term ore feed source.
Austral’s Chairman, David Newling, said the proposal is a superior one compared to Larvotto’s proposal.
“We believe this proposal represents a compelling and strategically superior outcome for Hammer shareholders,” Newling said.
“It offers a materially higher value proposition than the current Larvotto proposal, while combining two highly complementary Queensland copper businesses to create a larger, more relevant and better-capitalised company.”
He noted that the merger would bring together Hammer’s quality resources with Austral’s processing infrastructure, capital reserves, and regional capability to accelerate development.
“This is yet another forward step in our journey to become Australia’s next mid-tier copper powerhouse,” Newling added.
The acquisition play already carries non-binding backing from Hammer shareholders representing approximately 6 to 7 per cent of issued capital.
Hammer’s board has formally acknowledged the offer as a bona fide competing proposal, opening the door for mutual due diligence.
The finalised scheme remains subject to regulatory sign-offs from ASIC, the ASX, and the Court, alongside mandatory Hammer shareholder approval.
