Nevada Copper Corp., which operates the Pumpkin Hollow mine near Yerington, Nevada, has entered a stalking horse asset purchase agreement (APA) with Southwest Critical Materials LLC, an affiliate of Kinterra Capital Corp. Southwest has agreed to purchase substantially all of the assets of the company for $128 million plus an obligation to pay certain cure costs with an adjustment for the assumption of certain liabilities.
On June 10, 2024, Nevada Copper filed for Chapter 11 bankruptcy and a sales process was initiated with Moelis & Co. LLC. The U.S. Bankruptcy Court and the Superior Court of Justice of Ontario have approved bidding procedures for use in connection with the company’s sale process. In accordance with the bidding procedures, and subject to approval of the courts, Southwest will serve as the stalking horse bidder, establishing a minimum purchase price.
The sales process remains ongoing, and other interested bidders are continuing their participation in it. Multiple non-binding indications of interest were submitted and due diligence by various bidders is actively underway. The deadline to submit binding offers to purchase substantially all of Nevada Copper’s assets is September 6, 2024.
The Pumpkin Hollow copper project has substantial mineral reserves and resources including copper, gold and silver. Its two fully permitted projects include an active high-grade underground mine and processing facility, and a large-scale, open-pit prefeasibility stage project.
