Central Asia Metals plc today bought 178,800,056 shares in, and agreed a revised deal for, its proposed 100% acquisition of New World Resources Ltd, which holds the Antler copper project in Arizona, USA.
BASE METALS
The A$98,340 (£47,210) on-market purchase, at A$0.055 per share, represents 5% of the Australian company’s issued capital.
In May the company announced an all-share offer of A$185 million (£82.7m) for New World for A$185m (£82.7m).
Central today added it proposed to increase its offer from A$0.05 to A$0.053 per New World share, with a new overall value of A$197m.
Central will also provide A$10m via a placement of new shares in New World at A$0.053 per share, approximately 5% of its enlarged share capital, conditional on New World not receiving a better offer within the next 14 days.
“We have observed a new shareholder accumulate a substantial stake in NWR, including with purchases on the market at a price in excess of the prior consideration of A$0.05 per share, ” said non-executive chairman Nick Clarke.
“We believe our offer, now at greater value per share, represents a compelling transaction for NWR shareholders.”
New World, which will use the funds to meet bonding requirements for Arizona State permits, recommends its shareholders accept the scheme or offer.
The company’s shareholders are due to vote on the proposed deal during the third quarter of this year.
New World also owns the 4,000-acre Javelin project located near Antler and the Tererro copper-gold-zinc project, northeast of the city of Albuquerque in northern New Mexico.
Central’s current base metal interests are in Kazakhstan, North Macedonia and Scotland.