Nevsun Resources "rejects" C$1.5 billion investment offer from Lundin Mining

By Dale Benton
Share
A Canadian base metals mining company, with a portfolio spanning Chile, USA Portugal and Sweden, has seen a multibillion dollar investment offer rejecte...

A Canadian base metals mining company, with a portfolio spanning Chile, USA Portugal and Sweden, has seen a multibillion dollar investment offer rejected.

Lundin Mining had stated its interest in acquiring fellow Canadian gold and copper mining operator Nev Sun Resources.

But in an announcement this week, it has been revealed that the offer to acquire all of Nev Sun’s outstanding shares in a deal worth C$1.5 billion has been rejected.

Lundin has submitted three proposals for investment but has been “unable to successfully engage Nevsun in meaningful discussion.”

In the latest proposal submitted earlier this year, Lundin has worked with Euro Sun as a partner to negotiate a deal that would allow Nevsun shareholders to continue to benefit from the advancement of its flagship Timok project and its’ Bisha mine.

Nevsun shareholders would also continue to benefit from its 100%-owned Rovina Balley gold-copper project in Romania.

“Lundin Mining and Euro Sun believe strongly that the Proposal should be shared with all Nevsun shareholders,” said Lundin in a statement.

 

Related stories:

Ausdrill sells Diamond Communications and invests in HiSeis seismic rock company

Paladin Energy could place Langer Heinrich Mine under care and maintenance

New Century Resources to supply zinc concentrate from Century Mine to Concord Resources

Centerra Gold blocks Chaarat's move for Kumtor gold mine

 

Under the terms of the Proposal it would result in Lundin Mining owning the European assets of Nevsun including the Timok project and Euro Sun owning the remainder of Nevsun including the Bisha mine and Nevsun's cash balance.  

Paul Conibear, President and CEO of Lundin Mining commented: "Our significant experience in underground construction and mining, and track record of operating in Europe demonstrate our ability to be a strong and reputable developer of the Timok project in Serbia.

"After months of attempting to reach an agreement, we are disappointed that Nevsun has prevented its shareholders from considering our premium proposals and at this point in time, we believe that all Nevsun shareholders should be made aware of this opportunity.  We remain fully committed to negotiating a transaction with Nevsun under the very attractive terms proposed."

 

 

Share

Featured Articles

Intel Ridding its Supply Chain of Conflict Minerals

Intel first began to work towards responsibly sourced conflict minerals from the Democratic Republic of Congo and adjoining countries about 12 years

IEF on 'Paradox' of Mining's Role in Quest for Clean Energy

International Energy Forum says mining is the 'paradox' at heart of quest for clean energy but recognises the industry is addressing sustainability issues

ABB Reduces its Industrial e-Waste Impact

Leading global engineering company ABB – with strong mining presence – cuts industrial e-waste by promoting reuse and recycling in a push for circularity

Mining Automation Drives Efficiency and Safety Gains

Digital Mining

New Schneider SBS Energy Solution for Mining Sector

Smart Mining

Mining Conflicts Hit Communities As Battery Demand Soars

Sustainability