Kinterra takes bidding war for NWR to takeover panel

[Redator]

Canadian private equity firm Kinterra Capital has taken its takeover fight for Australian copper miner New World Resources (ASX: NWC) to the country’s Takeovers Panel, accusing rival bidder Central Asia Metals (LON: CAML) and NWR of breaching the Corporations Act.

Kinterra alleges that both NWR and CAML were involved in insider trading, market manipulation and misleading conduct. The firm, which now owns over 19% of NWR, is seeking to block a planned A$10 million share placement to CAML and prevent the UK-based base metals producer from acquiring additional shares.

The conflict follows a series of bidding rounds. CAML and NWR first agreed in May to a scheme of arrangement priced at A$0.053 per share. That offer was raised twice in response to Kinterra’s growing interest, with the current CAML proposal matching Kinterra’s latest bid of A$0.062 per share.

CAML has also been buying NWR shares on-market, increasing its stake from 5% to over 12% between June 20 and June 27. Kinterra claims these trades were made using inside information, citing irregularities in timing and disclosure.

The Takeovers Panel confirmed the reception of an urgent application from Kinterra seeking to prevent the placement announced by NWR on June 19.

NWRs holds three copper projects in the southwestern of the United States. Its flagship Antler project in Arizona, located 15 km east of Yucca, hosts a high-grade, polymetallic deposit with 11.4 million tonnes at 4.1% copper equivalent. A 2024 prefeasibility study projects a 12-year mine life with expected production of 341,100 tonnes of copper equivalent.

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

Shares in NWR fell on Wednesday, closing at A$0.063 each in Sydney. That leaves the company with a market capitalization of around A$240 million ($215m).