Kinterra and CAML Compete with Rival Bids for New World Resources

Private equity firm Kinterra Capital and London-listed Central Asia Metals (CAML) have intensified their competition for control of New World Resources, an Australian Securities Exchange (ASX)-listed company with significant assets in the United States. Both firms have raised their offers to New World shareholders, seeking to secure a takeover of the company that is developing the promising Antler copper deposit in Arizona.

On July 17, 2023, CAML submitted a revised bidder’s statement, increasing its offer to A$0.065 per share, up from its earlier bid of A$0.05 announced in May and a subsequent offer of A$0.062 made on July 7. In response to this updated proposal, New World’s board of directors unanimously recommended that shareholders accept CAML’s offer, provided no superior proposals emerge. The board also advised shareholders to refrain from taking any action regarding Kinterra’s previous bid of A$0.064 per share, made on July 10.

Shortly after CAML’s announcement, New World confirmed a new offer from Kinterra at A$0.066 per share. This offer includes a provision for an increased price of A$0.067 if Kinterra’s relevant interest in New World surpasses 30% by 17:00 AEST on July 24. In accordance with a matching rights regime, New World issued a notice to CAML, granting the company five business days to match Kinterra’s higher bid. Nevertheless, New World’s board continues to recommend the CAML offer and has urged shareholders to withhold action on Kinterra’s proposal for now.

Earlier this month, Kinterra lodged a complaint with the Australian Takeovers Panel, alleging that New World and CAML had engaged in actions that could undermine a competitive bidding process.

New World Resources is currently focused on developing the Antler copper deposit, which Managing Director and CEO Nick Woolrych described in May as one of the highest-grade copper projects globally. The company plans to commence construction on the project later this year, with production expected to begin in 2027 for copper, zinc, and gold. The rising demand for copper, identified as a critical mineral, is further fueled by a recent announcement from the U.S. government imposing a 50% tariff on copper imports, which is anticipated to increase internal demand for copper resources.

As the bidding war escalates between Kinterra and CAML, the outcome will not only impact the companies involved but also shape the future of New World Resources and its development plans in Arizona.