The battle for control of Australia-based New World Resources (NWR) has intensified, with private equity firm Kinterra Capital lodging an application with the Takeovers Panel, alleging that the company and its suitor Central Asia Metals (CAML) have acted to frustrate a competitive auction process.

The Canadian fund, which now owns more than 19% of NWR, is seeking orders to halt a A$10-million placement to CAML and to block further share acquisitions by the UK-listed base metals producer.

In its filing, Kinterra accuses both NWR and CAML of undermining market integrity and violating key provisions of Australia’s Corporations Act, including those related to insider trading, market manipulation, and misleading conduct.

"Kinterra submits that these circumstances result in the auction for control of NWR not taking place in an efficient, competitive and informed market," the Takeovers Panel said in a media release.

The dispute stems from a series of escalating bids and counterbids for NWR. CAML and NWR initially agreed to a A$0.053 a share scheme in May, which was revised upward twice in response to Kinterra’s growing interest. The current CAML offer stands at $0.062 a share, matching Kinterra’s latest bid.

Kinterra formally entered the contest on June 26, launching an off-market takeover bid at A$0.057 a share, which it later increased to A$0.062 a share. The offer is unconditional, with Kinterra also signalling its intention to vote against CAML’s scheme at the upcoming shareholder meeting.

Meanwhile, CAML has amassed a substantial stake in NWR via on-market purchases, going from 5% to more than 12% between June 20 and June 27, paying up to $0.062 a share for shares. Kinterra contends these transactions were conducted with the benefit of inside information, citing the timing and disclosure practices around CAML’s trades.

At the heart of Kinterra's complaint is the A$10-million placement to CAML, priced at A$0.053 a share, and announced by NWR on June 20. The placement was conditional on no superior proposal emerging. According to Kinterra, NWR’s board acknowledged that Kinterra’s offer could lead to a superior proposal, yet failed to terminate the placement agreement.

Kinterra said it repeatedly offered alternative debt financing, which the board rejected.

The Takeovers Panel has not yet decided whether to proceed with the matter. Kinterra is seeking interim orders to block the placement and any further CAML share purchases, and final orders requiring CAML to unwind its existing stake.

Shares in NWR, which owns the Antler copper project in the US, traded at A$0.063 a share on Wednesday.