Copper M&A sees Kinterra buy New World

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 (LSE: CAML).

Kinterra made a revised off-market bid of A6.6¢ per share, or A6.7¢ if its relevant interest in New World exceeds 30% by the end of trading on Thursday. The firm currently owns 19.99% of New World. 

Upon assessing the offer, which was declared by Kinterra to be unconditional, New World’s board determined that this will “reasonably be expected to lead to a superior proposal” compared to CAML’s latest offer of A6.5¢ per share. CAML has until Thursday to match this bid, but has decided not to, New World said this week. 

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 gained 1.5% on Wednesday to close at A6.7¢ in Sydney for a market capitalization of A$226 million (US$149 million).

Copper assets

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 U.S. The offer is being financed through Kinterra’s Critical Materials & Infrastructure Opportunities Fund II. 

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 at a 7% discount rate is estimated at US$498 million, with an internal rate of return of 30% and a payback period of 3.3 years.

Javelin project

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 U.S. critical minerals supply chain.

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