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Investing.com - Central Asia Metals plc said on Friday increased its cash offer for New World Resources (NWR) by 6% and committed to provide A$10 million ($6.5 million) in funding through a placement of new shares.
The improved offer raises the bid to A$0.053 per share from the previous A$0.05, valuing NWR at A$197 million ($128 million), up from the initial valuation of A$185 million ($119 million).
The transaction will continue to be funded through existing cash reserves and a new $120 million credit facility.
The interim funding of A$10 million will help NWR meet Arizona State bonding requirements, secure key project land parcels, and provide general working capital as the state permitting process progresses faster than expected.
The placement, representing 5% of NWR’s enlarged share capital, is scheduled for completion on July 9, 2025, conditional on no competing proposal being received within 14 days.
"We think that CAML’s balance sheet is in a relatively strong position and is able to take on an additional ~$20m from the placing and the improved cash consideration," according to RBC analysts.
CAML’s improved offer likely responds to Toronto-based private equity fund Kinterra Capital’s recent disclosure of a 12% stake in NWR, which raised the possibility of a competing bid.
NWR has not yet been approached by Kinterra with an alternative proposal.
The NWR board continues to recommend the transaction to shareholders, with the transaction booklet expected to be sent to NWR shareholders in mid-August 2025 and the shareholder meeting to approve the deal scheduled for the third quarter of 2025.
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