Nevada Copper enters stalking horse purchase agreement as part of Section 363 sales process

Torys is acting as counsel to Nevada Copper with a team led by Michael Amm and Tony DeMarinis and that includes Mike Noel (restructuring), Michael Jason and Sarah Rimer (corporate/M&A) and Jeremy Opolsky (court proceedings).

On August 12, 2024, Nevada Copper Corp. announced that it and its subsidiaries (collectively, “Nevada Copper”) entered into an asset purchase agreement (the “Stalking Horse APA”) with Southwest Critical Materials LLC (the “Buyer”), an affiliate of Kinterra Capital Corp., pursuant to which the Buyer agreed to purchase substantially all of the assets of Nevada Copper. The purchase price under the Stalking Horse APA is US$128 million plus the Buyer’s obligation to pay certain cure costs with an adjustment for the assumption of certain liabilities.

Nevada Copper filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court of the District of Nevada on June 10, 2024. In accordance with Section 363 of the U.S. Bankruptcy Code, a sales process was initiated by Nevada Copper. In order to maximize the proceeds from the sale, the sales process remains ongoing. Multiple non-binding indications of interest were submitted and due diligence by various bidders is actively underway, with the offer deadline set as September 6, 2024.

Further information can be found on Canada Newswire’s website.

Nevada Copper is the owner of the Pumpkin Hollow copper project located in Nevada, USA with substantial mineral reserves and resources including copper, gold and silver. Its two fully permitted projects include the high-grade underground mine and processing facility and a large-scale open pit PFS stage project.