Parties
Company
Nevada Copper Corp.
Company
Southwest Critical Materials LLC
Company
Kinterra Capital Corp.
On August 12, 2024, Nevada Copper Corp. (TSX: NCU) agreed to sell substantially all its assets to Southwest Critical Materials LLC, an affiliate of Kinterra Capital Corp., under a Stalking Horse Asset Purchase Agreement (APA) valued at US$128 million (CAD 171.3 million). This agreement followed Nevada Copper’s voluntary Chapter 11 bankruptcy filing on June 10, 2024, in the U.S. Bankruptcy Court for the District of Nevada. Moelis & Company LLC was retained to manage the sale process under Section 363 of the U.S. Bankruptcy Code. The U.S. Bankruptcy Court and the Superior Court of Justice (Commercial List) of Ontario approved the bidding procedures. The Stalking Horse Bid establishes a minimum purchase price, but the sale process remains ongoing, with a deadline for binding offers set for September 6, 2024.
If a higher bid is received and accepted, the Stalking Horse APA could be terminated, triggering a termination fee or reimbursement of the Buyer's expenses. The transaction's completion is contingent on customary closing conditions, including court approval. Additionally, the Toronto Stock Exchange (TSX) ordered the delisting of Nevada Copper’s shares, effective August 21, 2024, due to the ongoing bankruptcy proceedings.
Deal Type
Merger & AcquisitionIndustry
MiningTransaction
$ 171,300,000Deal Status
ActiveClosing Date