Miner Nevsun shares jump even as says rejected takeover proposal (updated)

Euro Sun Mining

08/05/2018 15:29

(New throughout, adds details and background, updates share
price)
    VANCOUVER, May 8 (Reuters) - Shares in Nevsun Resources
 NSU.TO  leaped on Tuesday even as it said its board of
directors had unanimously rejected an unsolicited C$1.5 billion
($1.16 billion) takeover proposal from Lundin Mining Corp
 LUN.TO  and Euro Sun Mining  ESM.TO  as too low with a
"problematic structure". 
    Copper-zinc miner Nevsun said in a statement the offer was
rejected after several months of engagement with fellow Canadian
base metals miner Lundin on a possible deal.
    Even so, Nevsun's shares surged 17 percent to C$4.46 on the
Toronto Stock Exchange. That was still below the C$5 a share the
takeover proposal values the company at. Lundin's shares fell
3.5 percent to C$7.94 and Euro Sun's were down 1.4 percent at
C$1.35.
    Lundin and Euro Sun disclosed on Monday that they had made
an offer on April 30 to buy Vancouver-based Nevsun. The offer
included C$2 in cash funded by Lundin, C$2 in shares of Lundin
and C$1 in shares of Euro Sun.  urn:newsml:reuters.com:*:nL3N1SE62X
    They said they had made public their offer as they believed
Nevsun's shareholders should be "made aware of this
opportunity".
    Nevsun said the proposal undervalues its Timok copper-gold
project in Serbia. It also said that Euro Sun, a small
non-operating mining company, was "not an attractive partner"
and has had difficulty raising financing.
    
($1 = 1.2967 Canadian dollars)

 (Reporting by Nicole Mordant in Vancouver
Editing by Chizu Nomiyama and David Gregorio)
 ((nicole.mordant@thomsonreuters.com; +1-778-374-3854; Reuters
Messaging: nicole.mordant.thomsonreuters.com@reuters.net))