CAML to acquire New World Resources

The Scheme Consideration values the fully diluted equity value of NWR at AUS$185 million (US$119 million).

The acquisition of NWR will add to CAML's portfolio a 100% interest in the Antler Project, a high-grade copper deposit located in Arizona in the US. In 2024, NWR released a pre-feasibility study (PFS) and maiden probable ore reserve estimate for the Antler Project. The PFS demonstrated a post-tax net present value (NPV) of US$498 million at a 7% discount rate, an internal rate of return (IRR) of >30%, and a three-year payback period, while producing an average of approximately 30 000 t of payable copper equivalent per annum over a 12-year life of mine (LoM). The latest mineral resource estimate published by NWR for the Antler Project totals 14.2 million t at a copper equivalent grade of 3.8%.

The transaction is to be funded from existing cash reserves and a new US$120 million credit facility from a syndicate of leading international lending banks.

Transformative transaction

• Once in production, more than doubles CAML's current annual payable copper equivalent production and cash flow, with average annual production from the Antler Project of approximately 30 000 t (years 2 – 11) and average annual post-tax unlevered free cash flow of US$115 million according to the PFS.
• Adds material near-term growth to complement CAML's cash-generative portfolio, with additional potential for further exploration at the Antler Project as well as regionally.

High-grade advanced development project with robust economics

• High-grade volcanogenic massive sulphide copper project with a total mineral resource estimate of 14.2 million t at a copper equivalent grade of 3.8%.
• The PFS demonstrated a LoM of 12 years with average steady-state payable metal production of approximately 30 000 tpy of copper equivalent at LoM C1 cash costs of US$1.97 /lb of copper equivalent, and all in sustaining cost (AISC) of US$2.18 /lb of copper equivalent.
• Manageable pre-production capex estimated at US$298 million in the PFS, representing a capital intensity of US$8563/t of average annual recoverable copper equivalent production for the 12-year LoM, placing the project in the lowest quartile globally.
• Post-tax NPV of US$498 million, a payback period of three years, and an IRR of over 30% at a long-term copper price of US$4.20 /lb according to the PFS.

Increased copper exposure in a tier-one jurisdiction

• The Antler Project is located in Arizona, the 'Copper Capital' of the US, benefiting from excellent infrastructure, services, and technical skills.
• Unprecedented support from the current US administration for domestic critical minerals production.

Commenting on the transaction, Nick Clarke, CAML's Non-Executive Chairman, said:

"We believe that this transaction is an exceptional opportunity for CAML to acquire a high-grade copper asset which complements our existing business. 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 is projected to be accretive on a net asset value per share basis, based on the PFS NPV, which is in line with our business development strategy of pursuing value-accretive acquisitions in the base metals sector to support the long-term cash flow generation of our business."

Read the article online at: https://www.globalminingreview.com/finance-business/23052025/caml-to-acquire-new-world-resources/