Nevsun Resources, which mines the copper-zinc Bisha mine in Eritrea, has has received an unsolicited offer from Lundin Mining Corporation to acquire all of the issued and outstanding shares of the company.
Nevsun shareholders have been advised by the company to take no action until the board of directors has made a formal recommendation to shareholders.
The offer will remain open for a minimum of 105 days, allowing Nevsun shareholders until 9 November 2018 to respond.
The offer follows an announcement by Lundin on 16 July 2018 of its intention to make an offer for Nevsun. At that time, Nevsun indicated that Lundin’s announcement ignored the fundamental value of Nevsun.
Lundin has also ignored the recent improvements at the Bisha mine, the new ultra-large Timok Lower Zone resource and progress at the Timok Upper Zone project Nevsun states.
“These achievements have set the stage for further value enhancement, and attracted the attention of several strategic parties that have expressed an interest in participating in the company’s continued development.”
Having now received a formal offer, the special committee of independent Nevsun directors will consider it with its advisors before making a recommendation to Nevsun’s board of directors.
They will make a formal recommendation to shareholders via a director’s circular within 15 days, in accordance with Canadian securities regulations.