London-based Central Asia Metals has entered into a definitive Scheme Implementation Deed (SID) with New World Resources to acquire the Australia-based, North American-focused company for A$185 million. The acquisition will add the Antler copper project in Arizona (USA) to Central Asia Metals’ portfolio.
“The addition of this high-grade copper project in a tier-one jurisdiction will significantly strengthen our portfolio. We have been impressed by the strength of NWR’s team and aim to work with them to integrate the Antler project, complete the DFS and work towards a construction decision,” said Central Asia Metals CEO Gavin Ferrar. “In addition, the manageable capital expenditures of the Antler project would provide us the opportunity to fund its development whilst ensuring we maintain a strong financial position.”
Under the terms of the Scheme, New World shareholders will receive cash consideration of A$0.05 per share. The transaction is to be funded from existing cash reserves and a new US$120 million credit facility from a syndicate of leading international lending banks, according to the UK miner.
Central Asia Metals said it expects the transaction to be completed in September.
Source: Central Asia Metals