Aim-listed miner Central Asia Metals (CAML) on Wednesday announced it would acquire ASX-listed New World Resources (NWR) in a transaction valued at A$185-million, adding the advanced-stage Antler copper project in Arizona, US, to its portfolio.
CAML has entered into a definitive scheme implementation deed with NWR under which it will acquire all shares in the company for A$0.05 a share in cash.
The study estimates an after-tax net present value of $498-million at a 7% discount rate, an internal rate of return above 30%, and a three-year payback.
We believe that this transaction is an exceptional opportunity for CAML to acquire a high-grade copper asset which complements our existing business, said CAML nonexecutive chairperson NickClarke. The addition of the Antler project to our portfolio will give us the potential for near-term growth as it would more than double our production and cash flow.
The transaction will be funded through existing cash reserves and a new $120-million credit facility from a group of international lenders.
CAML said NWR’s directors had unanimously recommended that shareholders vote in favour of the scheme, in the absence of a superior proposal and subject to the opinion of an independent expert.
Located in the so-called Copper Capital of the US, the Antler project is backed by established infrastructure and strong political support for domestic critical minerals development. The latest mineral resource estimate for Antler totals 14.2-million tonnes at a copper equivalent grade of 3.8%.
The PFS outlines average LoM C1 cash costs of $1.97/lb and all-in sustaining costs of $2.18/lb of copper equivalent. Pre-production capital is estimated at $298-million, translating to a capital intensity of $8 563/t of average annual recoverable copper equivalent production.
The addition of this high-grade copper project in a Tier 1 jurisdiction will significantly strengthen our portfolio,” said CAML CEO Gavin Ferrar.
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. 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.
Permitting is progressing and a definitive feasibility study is currently under way, expected to be completed under CAML’s ownership. The project is not bound by offtake agreements, providing flexibility as the company considers financing options for development.
