SYDNEY: New World Resources Limited (ASX: NWC) has entered into a revised off-market takeover agreement with Central Asia Metals Plc (LON: CAML), offering shareholders A$0.062 per share in cash. The deal, announced Monday, replaces a previously proposed scheme of arrangement and provides a straightforward exit for shareholders.
Key Highlights of the Deal
- Cash Offer: CAML will pay A$0.062 per New World share, matching a competing bid from Kinterra Capital.
- Simplified Conditions: The offer is contingent only on no “prescribed occurrences” (e.g., share buybacks or insolvency) affecting New World before the bid closes.
- Board Recommendation: New World’s board unanimously recommends the offer, with directors intending to accept it for their own holdings unless a superior proposal emerges.
- Loan Facility: A US$6.5 million unsecured loan from CAML replaces a previously planned A$10 million equity placement.
The CAML offer is set to open for acceptances by mid-July, with the bidder’s statement to be dispatched soon. Shareholders are advised to await the target’s statement, due in 2–3 weeks, before taking action. Notably, neither CAML nor Kinterra has declared their offers final, leaving room for potential revisions.
The revised bid aligns with CAML’s strategy to expand its copper and zinc portfolio, leveraging New World’s assets, including the Antler Copper Project in Arizona. The deal also streamlines funding, with the loan facility aimed at advancing project development and permitting.
New World will maintain market updates per disclosure requirements, while CAML finalizes funding arrangements. Shareholders can contact the company’s information line for details.
Focused on copper, zinc, and gold projects in the U.S., New World (ASX: NWC) owns the Antler Copper Project in Arizona and the Terenro Copper-Gold-Zinc Project in New Mexico.
A London-listed mining company, CAML operates base metal assets in Kazakhstan and Mongolia, with a focus on sustainable production.