Nevada Copper Enters Purchase Agreement

Nevada Copper Corp. and Southwest Critical Materials have agreed to a $128 million price tag for much of Nevada Copper’s assets.

The agreement comes after Nevada Copper filed for Chapter 11 on Monday, June 10, initiating a sales process managed by Moelis & Company LLC. The U.S. Bankruptcy Court and the Superior Court of Justice of Ontario have approved the bidding procedures.

As part of the approved procedures, the Stalking Horse APA will serve as the initial bidder, setting a minimum purchase price for Nevada Copper’s assets. The process will maximize the proceeds from the sale, with other interested bidders still actively participating.

The deadline for binding offers is Friday, September 6, with a potential auction to follow if higher or better bids are received. If there is an alternative transaction, Nevada Copper must pay a fee to Stalking Horse APA. If the agreement ends under other conditions, the company may also need to reimburse the buyer’s transaction expenses.

The bid’s completion depends on meeting the closing conditions outlined in Section 363 of the U.S. Bankruptcy Code, including following the bidding procedures and obtaining court approval. However, there are no guarantees that the transaction will be completed, even if no better offer is received.

Meanwhile, the Toronto Stock Exchange (TSX) has ordered the company’s shares to be delisted by Wednesday, August 21.