An affiliate of Toronto private equity firm Kinterra Capital emerged as the successful bidder for Nevada Copper (OTC: NEVDQ), which earlier this year filed for bankruptcy after it failed to secure funding for its flagship mine as operational costs swelled.

Southwest Critical Materials, the Kinterra affiliate, made a stalking horse bid of $128 million for substantially all of Nevada Copper’s assets in August. The bid was part of a sale process initiated by Nevada Copper when it declared bankruptcy in the US.

Under the bidding procedures approved by the US Bankruptcy Court, other parties can submit binding offers to purchase the Nevada Copper assets by September 6. However, no other qualified bid was received despite multiple interest parties.

As a result, Nevada Copper’s board of directors last week designated Southwest Critical Minerals as the successful bidder in the sale process. Final approval of the transaction would be heard by the US Bankruptcy Court and the Superior Court of Justice of Ontario later this month, and the transaction would close in October.

Nevada Copper is owner of the Pumpkin Hollow copper project located in Yerington, Nevada, comprising a high-grade underground mine that it briefly returned to production and an open-pit project.

Earlier this year, the company said it would require additional funding for the copper mine after it encountered underground water build-up, as well as unexpected bottlenecks that caused repeated shutdowns of the processing plant.

The operational setbacks caused costs to spiral and its key backers, including Pala Investments Ltd. and Mercuria Energy Group Ltd., hesitated to sink more money into the operation.

Source: MINING.COM – Read More