Hammer Metals Limited (ASX: HMX), an Australian exploration company primarily focused on copper-gold discoveries in the Mount Isa region of Queensland, has announced its intention to proceed with a superior acquisition proposal from Austral Resources Australia Ltd (ASX: AR1). This decision follows an announcement from Larvotto Resources Limited (ASX: LRV) earlier today, confirming that it will not submit a counterproposal to retain its original scheme implementation deed with Hammer Metals.
Hammer Metals had previously entered into a scheme implementation deed (SID) with Larvotto Resources on 11 June 2026. However, on 3 August 2026, Hammer received a superior proposal from Austral Resources to acquire all Hammer shares via a scheme of arrangement. Under the terms of the Larvotto SID, a matching right period commenced, allowing Larvotto the opportunity to present a revised offer. Larvotto’s announcement that it will not exercise this matching right effectively clears the path for Hammer Metals to pursue the Austral proposal.
The matching right period under the Larvotto SID is set to expire at 11:59 pm (AWST) tonight, Monday, 10 August 2026. Following this expiry, Hammer Metals intends to terminate the Larvotto SID as soon as it is able. Upon termination by Hammer, the drawn amounts of a loan facility provided by Larvotto and a break fee of $550,389 will become payable to Larvotto. Subsequently, Hammer will enter into a definitive agreement with Austral to formalise the binding Austral Proposal. Hammer shareholders are advised that no action is required from them at this time. The Austral Proposal remains binding on Austral, with Hammer having until 11:59 pm (AWST) on Wednesday, 12 August 2026, to formally accept it.
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