New World backing Kinterra takeover as CAML drops out

The months-long takeover battle for Australian copper developer New World Resources (ASX: NWC) is drawing near a conclusion after Canadian private equity firm Kinterra Capital lodged an improved offer to beat out Central Asia Metals (LON: CAML).

Last Thursday, Kinterra, through its Critical Materials & Infrastructure Opportunities Fund II, made a revised off-market bid of A$0.066 per share, or A$0.067 if its relevant interest in New World exceeds 30% by the end of trading on July 24. The firm currently owns about 19.99% of New World.

Upon assessing the offer, which was declared by Kinterra to be unconditional, New World’s board determined that it will “reasonably be expected to lead to a superior proposal” compared to CAML’s latest offer of A$0.065 per share. It subsequently gave the latter five business days (until July 24) to match this bid.

On Monday, the Australian miner said CAML has conveyed its decision not to match Kinterra’s offer. As as result, New World’s board is withdrawing its previous recommendation of the CAML proposal to shareholders, and instead, unanimously recommends shareholders to accept the Kinterra offer “without delay”, so that they can receive the increased consideration of A$0.067 per share prior to the July 24 deadline.

A subsequent statement by New World informed shareholders that the previous arrangement between the company and CAML has been terminated, with the latter receiving a break fee. CAML, meanwhile, has received Australian regulatory approval to withdraw its bid and said it intends to dispose of its New World shares by accepting Kinterra’s offer.

New World’s shares traded at exactly A$0.066 in Sydney by market close Monday, down 1.5% for the day, with a market capitalization of A$255.9 million.

Copper assets in play

CAML’s withdrawal from the bidding process clears the way for Kinterra to become the potential new owners of the Antler project in Arizona – touted as one of the highest-grade undeveloped copper assets in the US.

Located 15 km east of Yucca, the Antler property is host to a high-grade, polymetallic deposit with a resource of 11.4 million tonnes grading 4.1% copper equivalent. This resource was used to underpin a 2024 prefeasibility study, which outlined a 12-year mine producing 341,100 tonnes of copper equivalent during that span.

The project’s post-tax net present value (discounted at 7%) is estimated at $498 million, with an internal rate of return of 30.3% and a payback period of 3.3 years.

About 75 km southeast of Antler, New World also holds the exploration-stage Javelin project, which hosts a contiguous series of mining claims linked to high-grade volcanogenic massive sulphide deposits that it believes are of similar age and style to the Antler deposit.

These copper assets have been in play since May, when CAML first lodged its bid to acquire New World. In the same month, Antler was designated a Transparency Project under the FAST-41 framework, highlighting its strategic importance to the US critical minerals supply chain.

Kinterra made its first bid to rival CAML a month after, and the parties have since raised their respective bids to secure New World’s assets.