Larvotto Resources (LRV AU): USAC's Friendshoring NBIO

• In Friendshoring Aussie Rare Earths, I flagged the possibility of the US taking equity stakes in Australian processing projects, as a means towards securing a supply of critical minerals.

• Larvotto Resources (LRV AU), an explorer/evaluator/developer of gold and antimony, has now announced a NBIO from United States Antimony (UAMY US) (USAC) @ A$1.40/share, a 87.67% premium to undisturbed.

• USAC has also declared a 10% holding. An independent board committee is assessing the approach. Due diligence has not yet been granted. That should be forthcoming.

The Trade:

• Pricing is attractive.

• USAC are laying down a marker with a 10% stake.

• For a non-binding offer, this is trading tight at 3.3%/8.3%, assuming a five-month off-ramp.