CAML Raises Offer to A$0.065, Waives Conditions in New World Bid
New World Resources has unanimously recommended Central Asia Metals’ improved takeover bid, which offers a higher price and unconditional terms, setting the stage for a decisive shareholder vote.
- CAML raises offer price to A$0.065 per share
- Takeover bid condition waived, making offer unconditional
- Revised US$6.5 million unsecured loan facility agreed
- New World board advises shareholders to reject Kinterra offer
- Offer period open until 18 August 2025, unless extended
Board Unanimously Supports CAML Offer
New World Resources Limited’s board has thrown its full weight behind Central Asia Metals Plc’s (CAML) revised takeover offer, recommending shareholders accept the bid at A$0.065 per share. This marks a notable increase from the previous offer and comes with the significant concession that CAML has waived the usual takeover bid condition requiring it to secure more than 50% ownership before the offer becomes unconditional.
By removing this condition, CAML has committed to paying shareholders within five business days of acceptance, providing a level of certainty and liquidity that investors often seek in takeover scenarios. This move clearly signals CAML’s confidence and intent to secure control of New World Resources promptly.
Superior Offer and Strategic Financing
The New World board has also highlighted that CAML’s offer is superior to the competing bid from Kinterra, both in terms of price and conditions. Consequently, shareholders have been advised to take no action regarding the Kinterra offer, which remains open until early August but lacks the board’s endorsement.
In parallel with the takeover offer, New World and CAML have agreed on a revised US$6.5 million unsecured loan facility. Unlike the previous arrangement, this facility is no longer contingent on CAML acquiring a controlling interest, providing New World with immediate access to funds for advancing its key projects, including the Antler Copper Project in Arizona and the Tererro Copper-Gold-Zinc Project in New Mexico.
Next Steps and Shareholder Considerations
The CAML offer officially opened on 17 July 2025 and will remain open until 18 August 2025, unless extended. Shareholders who accept the offer will be locked in at the current price but will benefit from any future increases CAML might offer during the bid period. However, acceptance also means they forfeit the ability to withdraw and accept a potentially superior competing bid or sell shares on the open market.
The New World board plans to issue a detailed Target’s Statement within a week, outlining the rationale behind their recommendation. This document will be crucial for shareholders weighing their options amid the ongoing bidding contest.
While neither CAML nor Kinterra have declared their offers as “best and final,” the board’s clear preference for CAML’s proposal and the removal of key conditions may well tip the scales in CAML’s favor.
Bottom Line?
With the board’s strong endorsement and improved terms, CAML’s bid could soon reshape New World’s future; unless a surprise rival emerges.
Questions in the middle?
- Will Kinterra respond with a higher or improved offer before the deadline?
- How will the revised loan facility impact New World’s project development timeline?
- What are the potential risks if shareholders delay acceptance awaiting a superior proposal?
