Nevsun Resources' Bisha mine

TSX / NYSE-listed Nevsun Resources has been advised by Zijin Mining Group that Zijin has received the second of three required regulatory approvals from the People’s Republic of China for Zijin’s proposed friendly takeover bid of Nevsun.

The second PRC approval is from the Ministry of Commerce (MOFCOM).

With the previously announced NDRC and today’s MOFCOM approvals in hand, Zijin will submit, as soon as practicable, an application to the State Administration of Foreign Exchange (SAFE) for the third and final PRC regulatory approval required as a condition of the offer.

As previously disclosed, Zijin’s offer is all cash consideration of C$6.00 per share representing a premium of 57% over the company’s unaffected closing price of C$3.82 on May 7, 2018, the day Lundin Mining Corporation (Lundin) first publicly announced its intention to acquire Nevsun.

In addition, the Zijin Offer is C$1.25 per share, or 26%, more than the C$4.75 per share hostile take-over bid launched by Lundin on July 26, 2018.

The transaction is also subject to approval under the Investment Canada Act and customary closing conditions.

The Zijin offer is not subject to any financing conditions. Nevsun will continue to work with Zijin to complete the transaction and will keep shareholders updated as conditions of the offer are met.

Circulars are available under Nevsun’s profile on SEDAR, with the United States Securities and Exchange Commission, and on Nevsun’s website.

The company’s board of directors continues to recommend that Nevsun shareholders ACCEPT the Zijin offer by tendering their shares as noted in the Zijin circular and continue to REJECT the hostile take-over bid launched by Lundin and NOT tender their shares to the Lundin offer, which will expire on November 9, 2018.