Nevada Copper Corp. Progresses After Bankruptcy Filing

Nevada Copper Corp. has provided an update regarding its ongoing sale process and bankruptcy proceedings.

The company has entered into an asset purchase agreement (APA) with Southwest Critical Minerals LLC, an affiliate of Kinterra Capital Corp, after filing Chapter 11 bankruptcy in June.

Under the agreement, Southwest Critical Minerals will acquire substantially all of Nevada Copper’s assets for $128 million in cash, along with assuming some contracts and liabilities. The APA was executed as a stalking horse bid following Section 363 of the U.S. Bankruptcy Code after Nevada Copper’s voluntary bankruptcy filing.

The deadline for other binding offers to purchase the company’s assets expired on Friday, September 6. Although multiple bidders conducted due diligence, no alternative qualified bids were submitted, and after deliberation, Nevada Copper’s board of directors designated Southwest Critical Minerals as the successful bidder.

Final approval of the transaction is to be heard later this month by both the U.S. Bankruptcy Court in Nevada and the Superior Court of Justice in Ontario. The deal should close in October 2024, subject to customary closing conditions, court approvals, and satisfactory arrangements regarding the assumption of various contracts.

The proceeds from the sale will be distributed to creditors as part of Nevada Copper’s bankruptcy process, though there is no guarantee that the transaction will close as planned.