Kinterra brings bidding war for NWR to takeover panel

Canadian investment firm Kinterra Capital has escalated its bidding war against Australian copper producer New World Resources (ASX: NWC) by taking the matter to Australia’s Takeovers Panel. The company accuses both New World Resources and rival bidder Central Asia Metals (LON: CAML) of breaching the Corporations Act through insider trading, market manipulation, and deceptive conduct.

Kinterra, now holding a stake of over 19% in NWR, aims to thwart a proposed A$10 million share placement to CAML and prevent the UK-based base metals producer from acquiring more shares in the company.

The dispute stems from a series of bidding rounds. Initially, CAML and NWR struck a deal in May for a scheme of arrangement at A$0.053 per share. In response to Kinterra’s increasing interest, the offer was raised twice, with CAML’s current bid matching Kinterra’s latest offer of A$0.062 per share.

Additionally, CAML has been actively purchasing NWR shares on the market, boosting its ownership from 5% to over 12% between June 20 and June 27. Kinterra asserts that these trades were conducted using privileged information, pointing out discrepancies in timing and disclosure.

The Takeovers Panel acknowledged Kinterra’s urgent application to halt the June 19 share placement announced by NWR.

New World Resources boasts three copper projects in the southwestern United States. Its primary asset, the Antler project in Arizona, sits 15 km east of Yucca and holds a high-grade polymetallic deposit with 11.4 million tonnes at 4.1% copper equivalent. A prefeasibility study from 2024 forecasts a 12-year mine life with an estimated output of 341,100 tonnes of copper equivalent.

The company also oversees the early-stage Javelin project in Arizona and the Tererro VMS project in New Mexico.

NWR’s stock price saw a decline on Wednesday, closing at A$0.063 per share in Sydney. This drop leaves the company with a market capitalization of roughly A$240 million ($215m).

In conclusion, the battle for control of New World Resources continues to intensify as investment firms vie for dominance in the competitive copper mining sector. The allegations of misconduct and breach of regulations add another layer of complexity to the ongoing saga. Only time will tell how this bidding war will ultimately unfold and what the implications will be for all involved parties.