Zijin Mining Heads for Full Ownership of Nevsun
im-mining.com | Dec 29, 2018
Zijin Mining Group now holds 89.37% of all issued and outstanding common shares of Nevsun Resources Ltd. Zijin, through its subsidiary, has filed and will be mailing shortly thereafter a notice of variation and extension to Nevsun shareholders extending the period upon which Nevsun shareholders can tender their Nevsun Shares to the Offer.
If Zijin is successful in acquiring 90% of Nevsun Shares (on a fully diluted basis) under the Offer, Zijin intends to acquire the balance of the Nevsun Shares by way of compulsory acquisition, as more fully described in the Offer circular.
The Nevsun Board of Directors continues to recommend that Nevsun shareholders accept the Zijin offer by tendering their shares as noted in the Zijin circular.
Nevsun is the 100% owner of the high-grade copper-gold Timok Upper Zone and 60.4% owner of the Timok Lower Zone in Serbia. The Timok Lower Zone is a joint venture with Freeport-McMoRan Exploration Corp which currently owns 39.6%. Upon completion of any feasibility study (on the Upper or Lower Zone), Nevsun will own 46% and Freeport will own 54%. Nevsun generates cashflow from its 60% owned copper-zinc Bisha mine in Eritrea (pictured). Nevsun is well positioned with a strong debt-free balance sheet to grow shareholder value through advancing Timok to production.
Formed in 1993, Zijin is based in Fujian, China and is a leading global mining company specializing in gold, copper, zinc and other mineral resource exploration and development. It manages an extensive portfolio, primarily consisting of gold, copper, zinc, and other metals through investments in China and overseas across nine countries. Listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, Zijin has a market capitalization of approximately $10 billion.