New World Resources (NWC AU): On Kinterra's A$0.057/Share NBIO

• It was just a matter of time when Toronto-based PE outfit Kinterra Capital, with a (then) 11.99% stake, made a move on copper miner New World Resources (NWC AU).

• After declaring it had increased its holding to 19.126%, Kinterra followed with an off-market NBIO at A$0.057/share. Presumably the Offer requires due diligence but the announcement is silent on this.

• Separately, Central Asia Metals (CAML LN) announced after market last Friday, it had bought 178.8mn shares (5% of shares out) at A$0.055/share; and subsequently bumped terms to A$0.055/share.

NWC is illiquid. Look away now of this is not your bag

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The Trade:

• CAML can probably match Kinterra's indicative terms. But I think their firepower is diminishing. And CAML's share price is under pressure as they compete toe to toe.

• I expect Kinterra to emerge as the winner.

• ~A$0.06/share is potentially the end game - that's a massive 114% premium to undisturbed.

• If illiquid arbs are your bent, get in around here. I wouldn't chase it beyond A$0.06/share.