Nevada Copper has accepted the stalking horse bid of $128 million from Southwest Critical Minerals, an affiliate of Kinterra Capital Corp., a Toronto-based private equity firm. In addition to cash consideration, the asset purchase agreement also includes cure costs for contracts it assumes and an adjustment for the assumption of certain liabilities associated with the Pumpkin Hollow mine and its assets.
Under the bidding procedures approved by the U.S. Bankruptcy Court, the deadline to submit other binding offers expired on September 6, 2024. Despite multiple bidders conducting active due diligence prior to the expiration of the deadline, Nevada Copper said the sale process did not result in an alternative qualified bid.
As a result, after careful deliberation, the company said its board of directors designated Southwest as the successful bidder in the sale process and the company intends to consummate the transaction. Moelis & Co. LLC was retained by the company to assist with the sale process.
