New World Resources Limited (ASX: NWC) exploded on the ASX today, with its shares soaring 67.86% to $0.047, after announcing a proposed takeover by UK-based Central Asia Metals Plc (LON: CAML). The stock’s dramatic surge made it the top mover in the Materials sector and one of the best-performing stocks across the entire market.
The announcement, released after market close yesterday, detailed a binding Scheme Implementation Deed under which CAML would acquire all shares in New World for $0.05 per share in cash, valuing the deal at approximately A$185 million.
Performance of the share price of New World Resources over 3 months [Market Index]
A Transformative Proposal
The proposed scheme offers a considerable premium over recent trading prices:
- 78.6% premium to the closing price on 20 May 2025
- 95.7% to the 30-day VWAP
- 150% to the March 2025 capital raise price
Commenting on the transaction, New World’s Managing Director, Nick Woolrych, said:
“We believe this Transaction represents an exceptional outcome for New World shareholders, delivering certainty of value at a significant premium.”
He added that the board had seriously weighed up its options before committing to this path, saying:
“The Board decided to pursue this Transaction despite receiving exceptionally strong interest from multiple Tier-1 project financiers and strategic partners, which reflects the quality of the Antler Copper Project and its inherent strategic value in the global copper landscape.”
Market Euphoria and Massive Volume Spike
Investor reaction was swift and enthusiastic. Over 175 million shares changed hands today—an eye-watering spike compared to the 4-week average volume of just over 6 million shares. Turnover exceeded $8.27 million, as traders rushed to capitalise on the takeover premium.
The share price opened at the offer price of $0.047 and remained tightly traded within a narrow band, reflecting the market’s confidence in the proposal’s legitimacy and likelihood of completion.
Why the Offer Makes Sense
New World has several advanced-stage exploration projects in the US, including its flagship Antler Copper Project in Arizona. The company has recently explored various financing avenues to bring the asset into development, but the CAML offer presented a less risky, more immediate pathway to realising value.
Woolrych explained:
“Ultimately, the Board believes that this Transaction offers a superior risk-adjusted outcome compared to a standalone development of the Antler Copper Project, allowing shareholders to crystallise their investment at a significant premium without the risks associated with a longer-term standalone financing and development pathway.”
CAML is a well-established base metals producer with a strong operational track record in Europe and Central Asia. The company operates the SASA zinc-lead mine in North Macedonia and the Kounrad copper project in Kazakhstan, and it is backed by major institutional shareholders including BlackRock and Fidelity.
According to Woolrych:
“We believe that CAML will be a great steward for the Antler Copper Project moving forward, bringing their strong balance sheet and extensive underground mining and operating expertise to the table, together with New World’s established U.S. operations team, to bring this high-quality underground copper asset into production.”
Board Endorsement and Shareholder Support
The New World Board has unanimously recommended the offer, in the absence of a superior proposal and subject to the conclusion of an independent expert’s report. Directors holding 2.56% of shares have indicated their intention to vote in favour.
Chairman Richard Hill offered his endorsement:
“I commend the entire New World team who have done an exceptional job advancing the Antler Project to date. The CAML Scheme is the culmination of many years of hard work and delivers certain value for shareholders at a significant premium.”
He also expressed gratitude for the collaborative tone of negotiations:
“We thank CAML for its interest in New World and its constructive engagement during the negotiations. On behalf of the New World board, we would like to thank our shareholders for the continuous support along the journey.”
What Comes Next?
The transaction is subject to typical regulatory approvals, including from Australian courts, US and North Macedonian authorities, and CFIUS (Committee on Foreign Investment in the United States). The timeline is as follows:
- Late July 2025 – Scheme booklet distribution
- August 2025 – Shareholder vote
- September 2025 – Expected implementation and cash payout
Importantly, the transaction is not subject to financing or due diligence, as CAML will fund it through existing cash reserves and a newly arranged US$120 million debt facility.
Conclusion
Today’s 68% rally cements New World Resources as the ASX’s top story. The transaction presents a rare opportunity for small-cap investors to lock in a strong return at minimal risk, as CAML steps in to take Antler forward.
Woolrych concluded with a message of gratitude:
“We are immensely grateful to our employees, shareholders, and stakeholders across Australia and the US who have helped bring us to this point. We look forward to working closely with CAML to complete the Transaction and ensure a strong future for the Antler Copper Project.”
With a clear premium, strategic fit, and strong institutional backing, this deal is likely to be closely watched as a case study in successful value realisation in Australia’s resources sector.
