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Lundin Mining to make all cash offer to acquire Nevsun Resources

Mining News - Published on Wed, 18 Jul 2018

Image Source: Mining Global
Lundin Mining Corporation announced that it intends to make a formal offer (the "Offer") to acquire all of the issued and outstanding common shares ("Shares") of Nevsun Resources Ltd for cash consideration of CAD 4.75 per Share (the "Offer Price"). The Offer Price represents a significant premium of 82% to the closing price of CAD 2.61 on February 6, 2018, the date of the first offer to Nevsun related to our interest in acquiring Timok. This is a 33% premium to the closing price of CAD 3.58 per Share on the Toronto Stock Exchange as of April 30, 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 CAD 3.35 per Share on the TSX over the 20 trading days ended April 30, 2018. The Offer Price values Nevsun at an equity value of approximately CAD1.4 billion.

Mr Paul Conibear, President and CEO of Lundin Mining commented that "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 realize 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."

Benefits to Nevsun Shareholders

Lundin Mining believes the Offer will be attractive to Nevsun shareholders for the following reasons:

1. Significant Premium to Market Price. The Offer represents a significant premium of 33% to the closing price of CAD 3.58 per Share on the TSX as of April 30, 2018. The Offer also represents a significant premium of 40% to the volume weighted average trading price of CAD 3.35 per Share on the TSX over the 20 trading days ended April 30, 2018.

2. Liquidity and Certainty of Value. The all-cash Offer provides an opportunity for Nevsun shareholders to realize immediate liquidity and certainty of value for their entire investment.

3. Fully Financed Cash Offer. The Offer is not subject to a financing condition.

4. High Likelihood of Completion.Lundin Mining is a highly credible counterparty with significant experience in the mining industry. The Company has significant acquisition experience, having successfully completed many both small and large-scale acquisitions.

TD Securities Inc. and GMP Securities Inc. are acting as financial advisors to Lundin Mining and Cassels Brock & Blackwell LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are acting as Lundin Mining's legal advisors in connection with the Offer.

Source :

Posted By : Joykumar Irom on Wed, 18 Jul 2018
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