Dual-listed Nevsun Resources has rejected a non-binding unsolicited proposal led by Euro Sun Mining and also including Lundin Mining Corporation.
The proposal was dated April 30, 2018 and made public by Euro Sun and Lundin on May 7, 2018.
Nevsun shareholders do not need to take any actions in respect of the proposal.
The proposal is not an offer capable of being accepted by the company’s shareholders nor does it disclose whether such an offer is intended to be made.
It is merely a non-binding proposal by Euro Sun.
If and when a formal proposal is actually made by Euro Sun, the company’s shareholders will have 105 days to respond.
The rejection follows an extensive engagement with Euro Sun’s bidding partner, Lundin, over a period of months with regard to a possible transaction.
“The Nevsun board of directors is unanimous in its belief that the proposal fails to reflect the strategic value of our asset base,” says Ian Pearce, chair of Nevsun’s board of directors.
“The proposal also presents a problematic structure that could further undermine value to our shareholders.”
Reasons for rejecting the proposal
Nevsun believes that shareholders should be aware of the following:
- Inadequate value
- Problematic structure
- Euro Sun is not an attractive partner
- Euro Sun’s Rovina project is marginal
- Diminishing premium
- Value uncertainty
- Deal uncertainty