Nevada Copper Finalizes Sale of Assets in Bankruptcy Proceedings

Nevada Copper Corp. has completed the sale of nearly all of its assets to Southwest Critical Materials LLC, an affiliate of Kinterra Capital Corp. The sale, previously outlined in an asset purchase agreement (APA), is part of the ongoing bankruptcy process under Chapter 11 of the U.S. Bankruptcy Code.

The sale, which amounts to $128 million in cash consideration, also includes the payment of cure costs for assumed contracts and the assumption of certain liabilities by the buyer. The transaction follows Nevada Copper’s voluntary petition for Chapter 11 bankruptcy protection filed on Monday, June 10, in the U.S. Bankruptcy Court for the District of Nevada.

On Friday, September 27, the U.S. Bankruptcy Court approved the sale, allowing the assets to be transferred free of all encumbrances and interests. The court also authorized the assignment of specific contracts and leases. Following this, on Wednesday, October 2, the Superior Court of Justice of Ontario granted a Recognition and Vesting Order, recognizing the U.S. court’s decision across all Canadian provinces and territories.

With the completion of the sale, proceeds are expected to be distributed to certain creditors, as overseen by the bankruptcy court. However, Nevada Copper has indicated that the proceeds will not be sufficient to pay company shareholders of common stock.