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Lundin Mining commences offer to acquire Nevsun

Published by , Editor
Global Mining Review,

Lundin Mining Corporation announced on 26 July that it has formally commenced the offer to acquire all of the issued and outstanding common shares (Nevsun shares) of Nevsun Resources Ltd. (Nevsun).

The notice and advertisement of the offer appear in the 26 July 2018 editions of the Globe & Mail and Le Devoir, and the offer and take-over bid circular (the offer and circular) and related documents will be filed with the Canadian securities regulators on SEDAR under Nevsun’s profile and with the United States Securities and Exchange Commission.

Under the terms of the offer, Nevsun shareholders will receive CAN$4.75 in cash for each Nevsun share tendered to the offer. The offer represents a significant premium of 82% to the closing price of CAN$2.61 per Nevsun share on the TSX as of 6 February 2018, the date of the first proposal to Nevsun related to Lundin Mining’s interest. The offer also represents a significant premium of 33% to the closing price of CAN$3.58 per Nevsun share as of 30 April 2018, the date of Lundin Mining’s previously announced public proposal to Nevsun and a 42% premium to the volume weighted average trading price of CAN$3.36 per Nevsun share on the TSX over the 20 trading days ended 30 April 2018.

Lundin Mining has formally requested the Nevsun securityholder list and intends to mail the offer and circular and related documents to Nevsun’s securityholders as soon as practicable following receipt of this information. The offer is open for acceptance until 5:00 p.m. (Toronto time) on 9 November 2018. Subject to applicable securities laws, the deposit period may be extended, or in certain circumstances reduced, by Lundin Mining.

The offer is being undertaken in accordance with National Instrument 62-104 – Take-Over Bids and Issuer Bids and is subject to a number of customary conditions, including: (i) there being deposited under the offer, and not withdrawn, at least 66 2/3% of the outstanding Nevsun shares (calculated on a fully diluted basis), excluding Nevsun shares held by Lundin Mining; (ii) receipt of all governmental, regulatory and third party approvals that considered necessary or desirable in connection with the offer; (iii) no material adverse effect having occurred with respect to Nevsun; and (iv) the statutory minimum tender condition of 50% of the outstanding Nevsun shares, excluding Nevsun shares held by Lundin Mining (which cannot be waived).

Lundin Mining encourages securityholders of Nevsun to read the full details of the offer set forth in the offer and circular which contains the full terms and conditions of the offer and other important information as well as detailed instructions on how Nevsun shareholders can tender their Nevsun shares to the offer.

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