Source : BUSINESS NEWS
Toronto-based investment group Kinterra Capital has acquired a large stake in copper play New World Resources, which has flagged a likely increase in its takeover scheme.
Kinterra has bought a 12 per cent stake in New World over the past fortnight, paying between 4.75 cents and 5.1 cents per share.
That is above the 5.0 cents per share that London-based Central Asia Metals agreed last month to pay for New World.
That deal valued New World at $185 million.
The ASX-listed takeover target requested a trading halt today, pending a “potential material variation, including a proposed increase in scheme consideration”.
New World’s core asset is the Antler copper project in Arizona.
Kinterra’s move on New World comes eight months after it bought the Pumpkin Hollow copper project in the neighbouring state of Nevada.
With that acquisition, Kinterra said it controlled 11 billion pounds of copper across its portfolio in the United States.
The move on New World comes nearly three years after KInterra bought Perth-based nickel explorer Cannon Resources in a $45 million deal.
Its latest update on Cannon was in February last year, when Kinterra talked up an increase in the JORC resource at its Fisher East nickel project in WA.
Central Asia Metals is a base metals producer listed on London’s AIM market and has a market cap of some $600 million.
It owns the Sasa underground zinc-lead mine in North Macedonia and the Kounrad SX-EW copper project in central Kazakhstan.
