Lundin Mining to acquire Nevsun Resources
Published by Claire Cuddihy,
Assistant Editor
Global Mining Review,
Canadian base metals mining company Lundin Mining Corp.(Lundin Mining) is planning to make a formal offer to acquire all of the issued and outstanding common shares of Canadian mid-tier miner Nevsun Resources Ltd. (Nevsun) for a cash consideration of CAN$4.75 per share.
The offer price reportedly represents a considerable premium of 82% to the closing price of CAN$2.61 on 6 February 2018, the date of the first offer to Nevsun related to their interest in acquiring Timok.
According to Lunding Mining, this is a 33% premium to the closing price of CAN$3.58 per share on the Toronto Stock Exchange (the TSX) as of 30 April 2018, the date of Lundin Mining’s previously announced prior proposal to Nevsun, and a 40% premium to the volume weighted average trading price of CAN$3.35 per share on the TSX over the 20 trading days ended 30 April 2018. The offer price values Nevsun at an equity value of approximately CAN$1.4 billion.
President and CEO of Lundin Mining, Paul Conibear, commented: “Following our attempts to constructively engage Nevsun since early February 2018, after having made a series of proposals and observing significant recent changes in the political landscape related to Eritrea, we have determined that the best course now is to make an all cash offer directly to Nevsun shareholders. Our offer will represent the clearest path for Lundin Mining to acquire the Timok project and for Nevsun shareholders to realise on the value of their investment without dilution and financing risk. We believe that the proposed Nevsun acquisition consideration is full and fair value and represents a significant premium to Nevsun’s unaffected share price prior to the announcement of our first proposal.”
Intention to make an offer
Lundin Mining plans to commence a formal takeover bid circular in accordance with applicable Canadian securities laws on or around 27 July 2018.
The offer will be undertaken in accordance with National Instrument 62-104 – Takeover Bids and Issuer Bids and will be subject to a number of customary conditions.
Read the article online at: https://www.globalminingreview.com/finance-business/18072018/lundin-mining-to-acquire-nevsun-resources/
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